Mr. Green, a motivated first-time buyer and limited company director, had just found his dream home in Southsea. He approached us for support and guidance, knowing we specialise in helping self-employed limited company directors secure mortgages.
After reading conflicting information online, Mr. Green was unsure if his dream purchase could become a reality due to the trading history of his surveying business—a limited company with only one year’s accounts.
Is It More Difficult to Get a Mortgage with Only One Year’s Accounts?
When assessing mortgage affordability for limited company directors like Mr. Green, lenders prefer to see a track record and evidence of sustainability. They typically review 2 to 3 years of accounts and take an average. Therefore, when only one year’s accounts are available, options become limited, making it harder to meet lenders’ requirements.
How Did The Mortgage Pod Help to Find a Solution?
Fortunately for Mr. Green, our team at The Mortgage Pod has over 35 years of experience in the mortgage and property industry. As a whole-of-market mortgage broker, we were able to look beyond the straightforward high street lenders.
Specialising in helping self-employed individuals and limited company directors secure mortgages, we researched and identified a smaller lender—a regional building society—that was willing to conduct a manual review and assessment of his application.
Before submitting his full mortgage application, we took the time to understand the lender’s specific requirements and ensured that all necessary documents were provided promptly to support the application. Additionally, we kept Mr. Green regularly updated via email and WhatsApp, ensuring a smooth process with minimal stress and uncertainty. We always remain on hand for clients throughout the entire mortgage journey.
What Did the Specialist Building Society Have to Say About Mr. Green’s Application?
Working closely with smaller lenders, their staff, and specifically their underwriters can offer significant advantages to clients seeking more complicated mortgages. Having a direct communication channel with the decision-maker allows us to support the application with additional information or explanations.
In this case, the lender said:
“As Mr. Green has a wealth of professional experience working as a surveyor and holds all relevant qualifications, we are confident that there will be various income sources and opportunities available outside of the client’s existing contracts.”
— Senior Underwriter
For mortgage applications involving limited company directors, it’s not uncommon for lenders to contact the client’s accountant for a reference. In this case, the lender praised Mr. Green’s accountant and the thoroughness of the reference provided. They appreciated that all necessary information and reassurance were included.
The lender also added:
“Mr. Green is clearly building a very successful business and is very good at managing the financial side of the company, with clear and organized documentation.”
Client Testimonial
Steve at The Mortgage Pod was fantastic in helping us secure our first home. Our circumstances weren’t the most straight forward as a Ltd company director with only one years trading history.
Steve was responsive, knowledgeable, and always available to answer our questions. He made the entire mortgage process smooth and stress-free, explaining everything clearly and ensuring we understood each step. Steve went above and handled everything efficiently, we highly recommend him to anyone looking for a dedicated, professional mortgage advisor. Thank you, Steve, for making our home-buying experience a great one!
Mr. Green
Can The Mortgage Pod Help with My Self-Employed Mortgage Application?
At The Mortgage Pod, we specialise in helping self-employed company directors secure mortgages. We assisted a limited company director with a one-year trading history in obtaining a mortgage by assessing their circumstances and finding the best and most suitable lender.
Ready to start your mortgage journey? Whether you’re a limited company director or a self-employed sole trader, we can help find the right lender and mortgage product for your individual circumstances.
FAQ’s
What documents do I need if I have only one year of trading history?
– Full, finalised first year’s accounts.
– 3 months’ company and bank statements.
– Personal tax documents, SA302 and Tax Year overviews.
Can I get a mortgage using salary and dividends if I’m a limited company director?
Yes, you can! At The Mortgage Pod, we assess your individual circumstances to determine the best route for your mortgage application.
Can you get a mortgage with just one year’s trading history?
Absolutely you can, just scroll to the top of this page!
