Sole traders
Lenders may review tax calculations, tax-year overviews, accounts and the pattern of profit or declared income over time.
Self-employed mortgages
Your income may be assessed differently, not necessarily less favourably.
Different lenders can assess self-employed income in different ways. Joanne will take the time to understand how you work, how you are paid and which mortgage routes may be relevant.
Understanding your income
A more detailed picture than your latest year alone.
Self-employed applicants can sometimes assume that obtaining a mortgage will be significantly more difficult. In practice, the outcome can depend on your trading history, business structure, declared income and the way individual lenders assess the evidence.
Joanne will look at the wider picture and explain what information may be required before researching suitable mortgage options.
Joanne can discuss mortgages with:
- Sole traders and business partners.
- Directors of limited companies.
- Contractors and applicants working through their own company.
- Applicants with a shorter trading history.
- Applicants whose recent income differs from previous years.
How lenders may assess you
The approach can vary according to how you work.
There is no single assessment method used by every lender. Preparing clear and accurate information can help Joanne identify which routes may be relevant.
Company directors
Assessment may involve salary, dividends, company accounts, ownership share and sometimes other measures of business income.
Contractors
Depending on the lender and arrangement, income may be assessed using contracts, employment history, company information or declared earnings.
The process
Start by understanding how lenders may view your income.
Joanne will explain which evidence is likely to be useful before researching mortgage options for your circumstances.
- 01
Understand your working arrangement
Joanne will ask about your business structure, trading history, ownership, income and how you are paid.
- 02
Review the available evidence
Accounts, tax documents, contracts and company information may be considered depending on your working arrangement.
- 03
Research suitable lender approaches
Joanne will consider how different lenders may assess your income and identify routes relevant to your overall circumstances.
- 04
Explain the recommendation and apply
Joanne will explain the recommendation, supporting evidence and costs before preparing and managing the application.
Self-employed mortgage questions
Common questions about income evidence.
These answers provide general information. Requirements and available options will depend on the lender and your individual circumstances.
How many years of accounts will I need?
This varies between lenders. Some may consider applicants with a shorter trading history but the options will depend on your business, evidence and wider circumstances.
What if my latest year is stronger than previous years?
Lenders can take different approaches to changing income. Some may average figures while others may place more emphasis on a particular period, subject to their criteria and the supporting evidence.
How is a company director’s income assessed?
This can involve salary, dividends, company accounts, ownership share and other business information. The approach varies between lenders.
Should I speak to an adviser before submitting my tax return?
If you expect to apply for a mortgage, speaking to Joanne and your accountant early can help you understand the information lenders may review. Joanne cannot provide tax advice.
Talk through your circumstances
Explain how you work and how your income is structured.
Start with an initial conversation about your business, income, trading history and mortgage plans.