Each lender looks at things in a different way. Some are kinder to the self-employed, some are kinder to the over 50s, some aren’t kind to anybody but are very reasonably priced. It’s our job to know where you’ll get the best treatment, and we’re good at it.
The typical requirement is at least 2 years of accounts. To provide proof of this to the lender, we'll need your SA302 forms which you will be able to download for free or get from your accountant.
The key things you will require are as follows:
- Two years’ accounts
- A track record of regular work
- A healthy deposit
- A good credit history
Lenders will decide how much they are willing to lend typically by looking at your average profit over the past years.
What if I don't have 2 years of accounts yet?
If you don't have 2 years worth of accounts there are still options, as long as you have at least one year and can prove a track record of regular work or have evidence of work lined up for the future.
I am a sole trader
If you are a sole trader, the lenders will usually look at your profits when assessing your income. You will be able to get your total income received and total tax due figures from your SA302 forms.
My company is a partnership
When looking at your company's income, mortgage lenders will want to see each partner’s share of the profit. It's important to make sure you have accounts that show exactly how much you personally earn so that we and your potential mortgage lender can easily determine your annual income.
And what if I am a director of my company?
It's important to note that, if you are paying yourself a Director's Loan for which your are not liable to pay tax, it would not be counted towards your mortgage affordability.
There are only a couple of ways that lenders usually assess your income by:
- Salary and dividends
- Salary and net profits