Mortgage with 1 year + 10 months tax return

yllop1101

I have been self employed as a sole trader coming up to 4 years. 

Years 2 and 3 tax return average profits were around 12k and 16k, and it's looking like my year 4 will be around 19k profit (based on 10 months actual plus 2 months using an average of the 10).

So I can borrow a bit more, how likely is it a mainstream lender will accept something from my accountant for year 3 and the 10 months plus 2 predicted months?

Waiting another 2 months to do another application with a complete year isn't my preferred option so just exploring a potential alternative.

(for a bit more context I'm also employed 0.8 fte so the self employed aspect is a small portion of my earnings). 

K_S

@yllop1101 If you're asking whether a mainstream lender will take into account your current year's projected profits for affordability purposes, that's very unlikely. 

But given what you've said, that would be an issue only if you're looking to absolutely maximise your borrowing.

yllop1101

K_S said:

@yllop1101 If you're asking whether a mainstream lender will take into account your current year's projected profits for affordability purposes, that's very unlikely. 

But given what you've said, that would be an issue only if you're looking to absolutely maximise your borrowing.

Thank you, even my 10 months is more than my year 2 return, so perhaps submitting an application in a few weeks with 11 months would do it? And yes, I guess I am looking to almost maximise what I can borrow. 

K_S

yllop1101 said:

K_S said:

@yllop1101 If you're asking whether a mainstream lender will take into account your current year's projected profits for affordability purposes, that's very unlikely. 

But given what you've said, that would be an issue only if you're looking to absolutely maximise your borrowing.

Thank you, even my 10 months is more than my year 2 return, so perhaps submitting an application in a few weeks with 11 months would do it? And yes, I guess I am looking to almost maximise what I can borrow. 

@yllop1101 Afaik, there aren't any mainstream lenders who will take into account projected/draft accounts for affordability purposes. 

At a low enough LTV there maybe a couple of mainstream-ish lenders who may consider it, but I highly doubt it'll be worth the trouble compared to just waiting an additional month and getting your full year's accounts done.