Mortgages for Small Business Owners

If your business is returning a profit of £40,000 or more, we have the specialist knowledge to find the right mortgage for you.

Through years of experience, we understand the rules and processes which can potentially be a barrier to you securing a mortgage. This means we can help you negotiate a safe path to a successful conclusion.

If you’re a sole trader, partnership or limited company and you own more than 20-25% of the business, most lenders will see you as self-employed.

Lenders treat self-employed clients differently, with most needing a minimum of 2 years of accounts to consider a mortgage application.

For sole traders and partnerships, the majority of lenders will assess your income by using the net profit of your business and averaging the last 2-3 years.

For limited companies, the way lenders calculate your income can vary significantly. Some use salary + dividend, others profit before tax + salary, others profit after tax + salary.

If you have retained profit in your business every year, your borrowing capacity can be very different, depending on which of these calculations is applied.

How can Sarah Grace help?

  • We are not limited in the range of mortgages that we will consider for you, we can offer you advice on both first and second charge mortgages
  • We will match you with lenders where one year’s accounts are acceptable.
  • We have access to lenders who will take the last year’s figures only (rather than averaging)
  • We will liaise with your accountant if you’re unsure how your income is broken down
  • We support you all the way, from finding you the best deal to signing on the dotted line
  • We will ensure a smooth transaction with as little stress as possible
Your property may be repossessed if you do not keep up your repayments on your mortgage. A typical fee of £195 is normally charged for research and £295 on completion of your mortgage for managing the relationship with the lender. This may differ depending on your circumstances. The FCA does not regulate some forms of Buy to Let mortgages.