"There are a few lenders that will help people who only have one years' worth of accounts.
"There are also one or two more established lenders that will look to work off limited company accounts and lend against the net profit of the business, as opposed to the income the business owner has taken.
"This can be a very useful tool for those who run their businesses and personal finances efficiently and who draw lower personal income as a result."
Choice and competition
For many advisers, there is still a lack of competition in the market for the self-employed. Mr Stewart comments: "The borrower needs to be aware that if they are fishing in a smaller pond they will likely be restricted by the fish they can catch.
"By this I mean the fewer lenders there are on offer, the less competition the borrower can expect to see," he explains.
Mr Stewart adds: "There have been improvements for the self-employed when it comes to getting a mortgage but more can be done."
All doom and gloom?
In its latest bulletin, the Association of Mortgage Intermediaries (Ami) claims there has been a rise in the willingness of lenders to consider applications from self-employed people in the UK.
The bulletin stated: "Ami has been pleased to note an increasing willingness among mainstream and high-street lenders to consider more complex income borrowers.
"The self-employed sector of the mortgage market has been under-served for several years with small and medium-sized building societies and specialist lenders making up the bulk of this segment.
"However, pressure on margin appears to be encouraging more lenders to consider borrowers whose incomes do not necessarily fit a straightforward mould."
However, Ami also notes that the Bank of England has warned lenders against "moving up the risk curve" so hopefully this will not lead to an eventual tightening of criteria.
For Jamie Smith-Thompson, managing director of Portafina, it is not impossible to get a mortgage if you are self-employed but it helps if you have a decent track record, and for him, this is the key thing that clients need to consider.
He says: "The simple fact is, if you don’t have three years of accounts, it is highly likely you won’t be able to get a mortgage.
"Yet, if you do, it’s not as difficult as you might think. As long as you’re earning decent money and your income is fairly balanced and sustainable, you shouldn’t have many problems getting one."
simoney.kyriakou@ft.com
