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FOR THE USE OF MORTGAGE INTERMEDIARIES & OTHER PROFESSIONALS ONLY

FOR THE USE OF MORTGAGE INTERMEDIARIES & OTHER PROFESSIONALS ONLY

Self employed

We’ve updated our self employed lending criteria to ensure our treatment of 2020/21 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 effective from 20 August 2021

  • We've increased our maximum Loan To Income from 4.25 to 4.49 and have a range of products available up to 90% LTV.
  • All self employed applicants must have been open for business/trading for the last 3 consecutive months without any government support, e.g. SEISS grants or Job Retention Scheme. When keying 2020/21 tax year income, it is important to deduct SEISS grants 1 to 3.
  • Applicants can obtain evidence of SEISS grants from HMRC as a downloadable PDF. This evidence is required to show if grants were claimed or not (not required for Directors of Limited Companies or where not eligible to claim due to level of earnings).
  • Affordability is based on the average income over the last 2 years if the latest year has increased, or the latest year if average income has decreased. We manually review cases where a 10% drop in income applies in the last year after deduction of SEISS grants 1 to 3.

Acceptable self employed applicants


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

Income verification documentation

 

Acceptable documentation