Different lenders have different policies with regard to the number of years and nature of accounts required together with their attitudes to salaried earnings, gross/nett profits, dividends, declining or varying profits etc.
Whether you are a sole trader, operate through a shell company (typical IT contractor structure) or are a shareholder in a more traditional limited liability company/partnership we will be pleased to work with you and/or your accountants to plan for and achieve successful future mortgage application(s).
Many small businesses have funded their set up and/or ongoing financing by virtue of mortgaging, or guarantees against the business owner’s property. This is not necessarily the wrong think to do, but should always be approached with extreme caution and separate qualified advice about the structures, options and implications should always be taken.
There is no best structure or best mortgage for self employment - it depends on a wide set of circumstances.
One thing that is important - consistency. Before changing your employment structure (whether from employed to unemployed, from sole trader to limited company etc) ensure you have set up your financial arrangements - specifically any mortgage requirements - to cover at least the next couple of years.
The general trend is towards requiring demonstrated income from same/similar source at stable or increasing for at least two years. Income from property rentals is rarely included in such considerations.