Halifax 1 year self employed mortgage

Self employed Mortgage Success Stories

See below a few reviews for other self employed applicants that have used our service.

Success Stories for Self Employed Mortgages


Getting a mortgage whilst self employed is difficult even when you have a long trading history. For those with a new business whether that is a sole trader or limited company then things become even more tricky. However, in many cases, we have managed to get mortgages agreed for self employed people and often with high street lenders at competitive rates. Self employed customers have a much bigger need to get advice as they have complex incomes and the income evidence they need to supply is more detailed. Proof of income documents such as tax calculations (sa302s) and tax year overview are usually required. Specialist lenders might require certified accounts or company accounts.

As a specialist mortgage broker, our process is to do our best to not only get you the lowest monthly payment but also the best deal suited to your circumstances. As a business owner, you want to concentrate on running your business and let mortgage experts take care of your mortgage application. The mortgage advice we give to self employed customers works as follows.

  • Usually, we would have an in-depth chat over the phone where we go through your requirements and the type of mortgage deal you are looking for. Details such as the annual income of the self-employed applicant. Income from the tax return, mortgage payments, credit history, household bills, mortgage term needed, combined income and outgoings.
  • Once we have taken your details we would make inquiries with lenders and use information such as income history to get the first time buyer, home mover or remortgage application agreed in principle for you.
  • Once agreed we send a detailed email detailing the repayment basis, maximum loan, monthly repayments, and early repayment charge. We detail an exact list of documents required. For self employed people looking for a 1 year self employed mortgage the type of documents will include the usual items such as ID, tax year overview and tax calculations. However, more detailed documents such as business bank statements will be needed.

As a mortgage broker, our main objective is to try and place the case with a mortgage lender that offers high street rates. For self employed people with 1-year self-employed accounts, we can nearly always get a mortgage agreed with specialist lenders. But we would always try first to get the best mortgage deal available. Usually to make sure we are using the correct income we will ask you or your accountant to email us your tax year overview and tax calculation.  Then we can get your exact self employed incomes.

Any credit issues could affect us getting a Halifax 1 year self employed mortgage agreed. Credit score needs to be good to get a case agreed with such mainstream lenders. Issues such as defaults, CCJs, late or missed credit commitments would usually mean that we would not be able to get a mortgage agreed upon with a mainstream lender.


Post Topics – Halifax Self Employed Mortgage

Use our Quiz on Halifax Self-employed mortgage

Check our feedback for self employed mortgages

Why you should use a broker?

Other types of Self Employed Mortgages

Other factors to consider for a 1 year self employed mortgage

Other lenders to Consider

Summary – Self Employed Mortgage

FAQs – Halifax Self-Employed Mortgage


Damian Youell

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How We Work

We contact you and take down your details, income outgoings, name, address etc.

We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

You upload the documents and information need via our channel our online portal.

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Why you should use a broker?

A broker usually has access to many specialist lender options some of which the public does not have access to apply directly. This allows them to research and recommend solutions for self-employed mortgage applicants. They also understand how to read and calculate the income from the tax returns, tax year overview, and tax calculations to determine your income levels. Application income business owners can consist of Net Profit, Rental Income, Dividends, and Salary so working out what source of income to use is not just as simple as looking at the self-assessment tax return.

The biggest reason though to use a specialist mortgage advisor is that they should have a good experience at packaging a Halifax 1 year self employed mortgage. At the time of application, the broker should write a covering letter outlining why the case is strong and why it should be accepted using just a 12-month period of income of being self employed.

Factors that the Halifax underwriter will take into account can be several but we usually find that detailing the annual figure the self employed earned prior to becoming self employed is one of the biggest factors. Even if the old employment history is in a totally different industry or occupation altogether then this can help. For example, if the appeal for assessment details a previous income of £30,000 as a factory worker then the annualised figure for a self employed is similar then the underwriter or risk assessment team will be more likely to agree with the case. If however the factor worker earned £30,000 and now his income has jumped to £50,000 then the underwriter is less likely to agree with the case. The underwriters’ job is to help the lender bank against loss.

For a Halifax 1 year self-employed mortgage, the biggest factor to get the case agreed upon is whether or not the self employed applicant is still working in the same type of industry or job role. For example, a plasterer that earned £40,000 annual income prior to becoming self-employed and now is looking to apply using just 1 full-year self-employed income. A case like this provided the income has not jumped by too much is highly likely but not 100% guaranteed ti get agreed. For cases such as these, we have a very high success rate. Even if the case gets declined we have other specialist lender options to approach. However other lenders and building societies are likely to offer higher rates of interest bigger completion fees and a higher early repayment charge.

A good mortgage broker will justify the income in the letter. For example, we usually ask the business owners for 4 months’ business bank statements. We work with them to analyse these. Doing this we can break down the income going into the business and deduct any business expenses to justify the basis of mortgage affordability. Giving 4 months’ income history and breaking it down can allow the underwriter to easily satisfy the minimum income requirement.


Other types of Self Employed Mortgages

As well as the usual business owner or sole trader mortgage where first-time buyer or remortgage products use the income as above using accounts, tax calculations and the tax year overview, Halifax 1 year self employed mortgages can often be applied for even before an applicant has 1 years accounts. These types of self-employed mortgages include self employed people in the following categories:

Contractor Mortgage Applications

These are specialist mortgages and although in many cases the applicants own their own limited company or are sole traders provided the applicants have a certain amount of experience in the same line of work Halifax will use a signed copy of the contract. There are certain criteria needed for this type of self employed contractor mortgage. We have more details guides on this.

CIS contractors

Construction Industry Scheme workers can apply for a mortgage with Halifax even without the 1 year self employment history. Again there are unique criteria around the qualification for such mortgages. We have a specific post about these types of mortgages that goes into much more detail. However, in the main, a CIS contractor needs 2 years of history in the same type of role. They also need 13 weekly voucher slips or 3 months CIS slips. The income from the slips must also be evidenced on the bank statement whether or not they are business bank accounts or personally does not matter.

Umbrella Company Workers

The criteria for Halifax 1 year self employed mortgages again are not applicable for Umbrella company mortgages. Provided the self employed person has a history in the same line of work then umbrella company works can usually apply much quicker than 1 year. Umbrella payslips can be complex so in many cases we will require the signed contract.


Other factors to consider for a 1 year self employed mortgage

  • Deposit – The bigger the deposit and the lower the loan to value the more chance of getting a 1 year self employed mortgage agreed. The lender wants to reduce risk and the easiest way for them to do this is with a bigger deposit. It is possible with just a 10% deposit but ideally, a 15% deposit will be best.
  • SEIS Grants – Businesses that used the Self Employed Income Support grants during the Coronavirus pandemic might have the underwriter scrutinize their business in detail. However, if a broker follows a good appeal letter and justifies the profit and application income using bank statements then the application has a good chance of success.
  • Bounce Back Loans – As above bounce back loans will mean the case is looked at in more detail by the underwriter.
  • Upcoming Contracts – Any future or upcoming contract that can be given to support the application should be given to the underwriter to help justify both the income history and justify why the income is sustainable.

Other lenders to Consider

Aldermore

Accounting information for at least 2 years is normally required, although an applicant with 1 year’s accounting information can be considered if the applicant:
– Has no history of payment arrears, defaults, CCJs or other adverse information in the last 3 years on personal and business credit search; and
– Has a track record in the trade, or is
– Able to demonstrate guaranteed income within the next accounting period; or
– The business is an ongoing concern and sustainable, or is
– Able to provide management accounts for at least the first 6 months of the current financial year
– If appropriate, VAT returns for the two previous quarters are to be supplied
– Personal and business bank statements for at least the previous 3 months
– Income will be based on the profit or salary/dividends for the first year of trading

Beverley Building Society

Beverley Building Society will consider self employed applicants with one year’s accounts up to 80%#

Bluestone

Yes they will consider

Dudley Building Society

Yes up to 7% loan to value

Foundation Home Loans

Yes minimum 1 year accounts

Halifax

Where the customer has been trading for less than 2 years but for at least one full year the application can be considered and accounts are then our preferred method of income verification. Additional information may be required to support any application.

Kensington

Yes. Acceptable. For applicants with 1 year accounts cases will be limited to 85% LTV (must be full, finalised accounts).

Mansfield BS

Can consider 1 year on ‘Versatility 3 (80%)’ & ‘Versatility 4 (75%)

Newcastle Building Society

For applicants who have less than 2 years track record as self employed we can offer one of our special self employed products. These are available subject to
• Maximum LTV of 80%
• At least 1 years full accounts available

Precise Mortgages

Yes, 1 years self employed accounts accepted.

Accountants have to have the correct qualification e.g ACA/FCA, CA, ACCA, FCCA, AAPA, FAPA, CIMA, CIPFA.

Together

Yes, will accept a 1 years self employed person.

Please note the above criteria is subject to change. It is recommended that anyone looking to explore such options speak to us so we can match your circumstances with the most suitable lender available. This will allow us to match you with the best mortgage rates for your credit score.


Summary

In summary, a Halifax 1 year self employed mortgage is possible. However, the case will need careful packaging and justification of the income. Breaking the internet bank statements down and justifying the profit, supporting the case with any contract income, and using employment history and continuous service to strengthen the case is something that a good broker will be able to help you with.


FAQs – – Halifax Self-Employed Mortgage

Can I get a mortgage if self-employed?

Yes,  you can mortgage if you are self-employed in the UK. The only thing you need to do is ensure you have enough money saved to cover the interest payments and repayment charges over the mortgage term. Self-employed mortgages are available for sole traders, freelancers, contractors, directors, etc. If you are a self employed customer of a specific you can contact the bank to start your application, but we would suggest contacting a dedicated mortgage advisor to get the best deal on your mortgage.


What documents do I need to apply for a mortgage?

If you are a self-employed customer of a particular, you may need to provide your bank statements to prove your income. In addition to bank statements, you may need to provide proof of identity and address, which includes valid photo identification.  There may be additional documents required as per the lending criteria of a mortgage lender.


 Can I get a self employed mortgage from Halifax Bank?

Yes, you can get a self-employed mortgage from Halifax bank. You just need to make sure you meet their eligibility requirements. If you are interested you can a dedicated mortgage advisor  before starting your application with Halifax bank.


How much does it cost to get a self employed mortgage?

The cost of a self-employed mortgage will depend on various factors such as deposit amount, monthly payments, mortgage term, credit history, etc. We recommend speaking to a mortgage broker before applying for a mortgage.


FAQs – Halifax Self-Employed Mortgage2022-07-05T10:22:36+00:00

FAQs – Halifax Self-Employed Mortgage

Can I get a mortgage if self-employed?

Yes,  you can mortgage if you are self-employed in the UK. The only thing you need to do is ensure you have enough money saved to cover the interest payments and repayment charges over the mortgage term. Self-employed mortgages are available for sole traders, freelancers, contractors, directors, etc. If you are a self employed customer of a specific you can contact the bank to start your application, but we would suggest contacting a dedicated mortgage advisor to get the best deal on your mortgage.


What documents do I need to apply for a mortgage?

If you are a self-employed customer of a particular, you may need to provide your bank statements to prove your income. In addition to bank statements, you may need to provide proof of identity and address, which includes valid photo identification.  There may be additional documents required as per the lending criteria of a mortgage lender.


 Can I get a self employed mortgage from Halifax Bank?

Yes, you can get a self-employed mortgage from Halifax bank. You just need to make sure you meet their eligibility requirements. If you are interested you can a dedicated mortgage advisor before starting your application with Halifax bank.


Damian Youell

Feel Free To Start WhatsApp Chat With Us...

WhatsApp

How We Work

We contact you and take down your details, income outgoings, name, address etc.

We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

You upload the documents and information need via our channel our online portal.

Get Started

Feel Free to Contact Us

Call Damian
Email Us
Text Us
Call Office

How much does it cost to get a self employed mortgage?

The cost of a self-employed mortgage will depend on various factors such as deposit amount, monthly payments, mortgage term, credit history, etc. We recommend speaking to a mortgage broker before applying for a mortgage.


Can I get a mortgage as a self-employed borrower from Halifax bank? 

Yes, you can get a loan as a self-employed borrower from Halifax bank but may need to pass the affordability check to Halifax bank. If you are interested you can hire a dedicated mortgage advisor to help you with mortgage products.


What will be my mortgage term for a self-employed mortgage from Halifax bank?

Every lender has different mortgage terms for the borrowers. It mostly depends on factors such as income details, credit cards, credit reports, minimum deposit etc. If you are interested in getting a self-employed mortgage with Halifax bank, you can check the mortgage terms on the official website.

By |2022-07-05T10:26:01+00:00April 6, 2022|Knowledge Mortgages, Mortgages, Occupations|0 Comments

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