How lenders view self employment
Self employed applicants include sole traders, partners, freelancers, contractors and limited company directors. The mortgage itself is ordinary; the difference is in how income is documented.
Depending on the lender, income may be taken from tax calculations, finalised accounts, salary and dividends, or share of net profit.
Documents worth preparing
Tax calculations and tax year overviews, finalised accounts or an accountant's certificate, profit and loss figures, and business and personal bank statements are commonly requested.
Having these ready before an application avoids stop-start underwriting.
Trading history
Requirements vary. Some lenders look for a longer trading history, while others may consider a shorter period where the wider picture is strong. Nothing here should be read as a commitment from any particular lender.