Self Employed Applicants
We normally require a minimum of 2 years' income documentation for self employed applicants.
However, where they have been self employed for 3 years or more, the full 3 years' income documentation must be provided.
Applicants who have been self employed for less than 2 years can be considered subject to credit score and underwriter referral.
You must record all relevant years' income accurately on the mortgage application. 3 years' figures must always be provided.
If the applicant has been self employed for less than 3 years, please enter '0' into the income fields.
If any of the following criteria apply, the client must be keyed as self employed.
- Where the applicant has a shareholding of 25% or more
- If joint clients own 25% or more between them, treat both clients as self-employed (both applicants need to hold a % share)
- A sub-contractor who derives income from more than one contract
- An applicant has a partnership interest in a business, i.e. income is not PAYE, irrespective of the percentage shareholding
- An applicant owns a franchise
- An applicant employed by a Private Limited Company (LTD) or Limited Liability Partnership (LLP) who receives a salary (PAYE) and dividends as part of their remuneration package and / or Net Profits
For full information on the different types of income accepted for self employed applicants please see income section.
Acceptable Income Verification Documents
The year end on all documentation must be the most recent and must not be dated more than 18 months before the date of application.
Latest 3 Years Inland Revenue Tax Calculation (SA302) - Original SA302’s on headed paper are acceptable. Prints of the online version are not acceptable. The year the SA302 relates to and applicants name / initials must show.
Accountants Reference - The reference must be fully completed with all required information provided. It must be signed & dated by a suitably qualified Accountant and must also have either a practice stamp, or be accompanied by a sheet of the company's headed paper.
Latest 3 Years Full Accounts - must be finalised, signed by the accountant and clearly show the net profit (for Sole Traders), share of net profit (for Partnerships) or salary & dividends (for Directors of Limited companies). Profit & Loss statements alone are not acceptable.
The year end on all documentation must be the most recent and must not be dated more than 18 months before the date of application. We do not accept forms, paper or online versions from the HMRC website used to file an annual tax return. We reserve the right to request accounts where necessary.