But my adviser insisted I need 3 years accounts to prove my earnings!
Being asked for reams of unnecessary accounts is often the case when you approach your bank directly for a mortgage.
Most branch advisors don’t understand your contractor status. As such, lenders are likely to highlight your mortgage application as higher risk before forwarding it to head office for assessment.
Furthermore, if you state that you’re self-employed through your own limited company, they’ll ask for an accountant’s certificate or 3 years accounts. This is requested to try to prove your disposable income, hence affordability.
The problem with using this traditional approach for you is that it rarely reflects your true earnings. You need your mortgage application to be based on a multiple of your contract rate alone.
Author: John Yerou
John Yerou is the owner and founder of Freelancer Financials; a trading style & trade mark of the award winning Mortgage Quest Ltd. One of the most recognised names in providing mortgages for contractors and freelancers across the UK.
In 2004 John began his career in Financial Services as an independent mortgage adviser and broker. John has been instrumental in negotiating bespoke underwriting for contractors with high street lenders.
His presence in the industry as a go-to expert is growing by the day and he is regularly cited and writes in publications both locally and nationally.