Self employed

We’ve updated our self employed lending criteria to ensure our treatment of income is clear and straightforward.

We’ve also provided more clarity on our position regarding applicants in receipt of Covid support such as Self Employment Income Support Scheme (SEISS) grants and use of the Job Retention Scheme. We’ve added a self employed section to our criteria pages so you can find the information you need more easily.

Our criteria for self employed applicants

Our maximum loan to income multiple for self employed applicants is 4.49 and we have a range of products available up to 95% LTV.
Applicants must have been trading for at least 2 years and provide 2 years finalised figures to evidence income (for limited company director with more than 25% shareholding we will use business year figures, not the tax year).
Affordability is based on average income over the last 2 years if the latest year has increased, or the latest year if average income has decreased.

Acceptable self employed applicants

Applicants who do not meet the criteria below will be treated as employed customers

- Applicants must have been trading for at least 2 years and provide 2 years finalised figures to evidence income
- We will accept net profit for sole traders and share of net profit for partners in a partnership or LLP
- Required income evidence:
  
  2 years tax calculations and corresponding tax year overviews or accountant’s reference
- We don’t have a minimum experience period and we accept future income up to 3 months.
- Affordability will be evidenced as per our employed policy.
- If the applicant is in receipt of dividends, affordability will be evidenced as per our self employed policy.
- Applicants must have been trading for at least 2 years and provide 2 years finalised figures to evidence income (Business year figures are used, not the tax year)
- Affordability is based on salary and dividends
- If joint applicants own 25% or more between them, treat both as self-employed (both applicants need to hold a % share)
- An accountant’s reference is required to evidence income
- If dividends exceed share of net profit, the application will be manually reviewed by our underwriting team
- Day rate contractors that do not meet our policy criteria (Contractors | TSB Intermediaries) will be treated as self-employed

Income verification documentation

Acceptable documentation