Self-Employed & Directors

Mortgages for the Self-Employed

Not all lenders view the same person in the same way!

We believe that a vital part of our success in placing a mortgage with the correct lender is through us regularly reviewing our knowledge of lenders criteria in this area.

Note: Lenders usually treat shareholding directors as self-employed for income verification purposes.

Our Expertise

Some lenders may use tax return income, some will use accounts, some may use retained income, some will use the company year-end income, some will use personal tax return income, some will use an average of the last 2 or 3 years income, some will use the latest 1 year income! It's knowing which lender will accept what income evidence that helps us find people the right mortgage as fast and efficiently as possible.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Types of Income Evidence Accepted

Tax Return Income

Income declared on your Self Assessment tax return (SA302) or tax calculation. Many lenders prefer this as their primary evidence.

Company Accounts

Figures from your certified or accountant-prepared company accounts. Some lenders will use net profit, others gross profit.

Retained Profits

Some lenders include profits retained in the company, not just what you've drawn as salary and dividends.

Income Calculation Methods

Lenders also differ in how they calculate your income over time:

Average of last 2-3 years Some lenders take an average of your income over multiple years
Latest year only Other lenders will use just your most recent year's figures
Lowest of last 2 years Some take the lower figure to be cautious
Salary plus dividends For directors paying themselves via dividends
Net profit share For partners in partnerships or LLPs

What You'll Need

Typically, you'll need at least 2 years of accounts or tax returns, though some lenders will consider applicants with just 1 year of trading history. We'll advise you on exactly what documentation you need for your chosen lender.

Common documents include:

SA302 tax calculations (usually last 2-3 years)
Tax year overviews from HMRC
Certified accounts (for limited companies)
Accountant's reference
Business bank statements