Mortgages For Self-Employed Without Accounts

Applying for a mortgage as a self-employed individual can be tricky. Lenders tend to be cautious with self-employed applicants, as verifying income and assessing its consistency can be challenging. This uncertainty is viewed as a risk, as lenders need assurance that the borrower can make regular mortgage repayments.

Lenders need proof of affordability to guarantee responsible lending. In this article, we’ll discuss your options for applying for a mortgage without official accounts, how lenders assess these applications, and tips to improve your chances of approval.

What Lenders May Accept Instead of Accounts

Guarantor Support: Some lenders may be more willing to approve your application if you can provide a guarantor who is willing to take on some of the financial responsibility. For more information on how guarantors work and the responsibilities involved, check out Citizens Advice - Using a Guarantor.

Contracts or Upcoming Work: If you're a freelancer or contractor, showing confirmed contracts or agreements for future work can be a way to validate your income potential.

Tax Returns (SA302s): Many lenders will accept your HMRC tax calculations and tax year overviews as proof of income instead of traditional accounts prepared by an accountant. 

To get these documents, you can access your Self-Assessment tax return on the HMRC website. For more detailed information and guidance on how to file your self-assessment and retrieve your tax documents, visit the official Gov.uk Self-Assessment Tax Returns page.

Bank Statements: Providing a history of consistent income through your business or personal bank statements can help demonstrate your affordability.

Deposit Size: A larger deposit (e.g., 15–25%) can make you less of a risk in the eyes of the lender, which may offset their concerns about your lack of accounts.

How to Improve Your Chances of Getting a Mortgage Without Accounts

If you're self-employed and finding it difficult to get a mortgage, there are several strategies to improve your chances. Start by researching different lenders and understanding their requirements, as some may be more flexible with self-employed applicants. Strengthening your financial profile—such as maintaining a strong credit score, and organising clear financial records can also make a difference. To compare mortgage options, use our online mortgage quote tool to find the best mortgage provider to fit your needs.

Another option may be to consider remortgaging if you already have a mortgage, which could offer more favourable terms. At Bell Financial Solutions, we specialise in providing expert remortgage advice, offering access to a wide selection of products. This includes both competitive options from high-street lenders and exclusive specialist products that aren’t available directly to consumers. We also have a helpful blog on remortgaging when self-employed, guiding you through the process and highlighting key considerations for your unique situation.

In addition to these strategies, there are other ways you can improve your chances of securing a mortgage, even if you don't have traditional accounts. Let’s explore some additional options that might help you get the mortgage you need.

Save a Larger Deposit

One way to strengthen your mortgage application is by saving for a larger deposit. Lenders are more likely to approve your mortgage application if they can see that you have a significant amount of equity in the property. A larger deposit reduces the lender’s risk, making them more likely to offer a loan, even if you don’t have formal accounts.

Consider Specialist Lenders

Some lenders specialise in providing mortgages to self-employed individuals who don’t have the typical documentation, such as accountants' reports. These lenders often consider other factors such as your business potential, the consistency of your income, and your creditworthiness. While the rates may be higher, these specialist lenders can be an excellent option for those who have difficulty meeting the criteria of traditional banks.

Show Consistent Income Over Time

If you’ve been self-employed for some time, lenders will want to see evidence that you can sustain your income. Even without formal accounts, consistent earnings over the last year or two—whether in the form of bank statements, invoices, or contracts—can work in your favour.

Get Professional Help

Working with a mortgage broker can be incredibly helpful, especially if you're self-employed without accounts. Mortgage brokers can help you identify the right lenders for your situation, navigate the application process, and present your case in the best possible light. They can also assist in gathering the documentation you need to support your application. If you're considering applying for a mortgage and need expert advice, Bell Financial Solutions can help you find the best options.  

‍What Types of Mortgages Can You Get Without Accounts?

There are many types of mortgages available for self-employed individuals without accounts:

Income-Based Mortgages: Some lenders offer income-based mortgages, where they will assess your income through other documents like bank statements, contracts, and invoices. These types of mortgages may have slightly higher interest rates but can be a good option for those who can show regular income.

Guarantor Mortgages: If you're unable to provide sufficient evidence of your income, you may want to consider a guarantor mortgage. This allows a family member or friend to act as a guarantor for the mortgage, securing the loan with their financial resources.

Adverse Credit Mortgages: If you have a poor credit history or no accounts, some lenders may offer adverse credit mortgages. These mortgages are designed for individuals who don’t meet traditional lending criteria.

Get Started Today

So now that you know that it is possible to get a mortgage as a self-employed individual without traditional accounts, why not start working with our specialists to improve your chances of getting a loan! If you’re self-employed without accounts, it’s important to work closely with a professional to explore your options to make sure you find a mortgage that suits your financial situation. Ready to get started? Reach out to Bell Financial Solutions today to discuss your options and take the first step towards securing your home.