Self Employed Mortgages

Lenders will usually ask for your SA302 forms for the last two or three years as proof of your income. This is the self-assessment form that shows how much income was declared to HMRC and how much tax you paid. Many lenders will also want to see accounts that have been prepared by a qualified accountant.

Self-employed individuals may face slightly higher mortgage rates compared to those who are employed, due to the perceived risk associated with irregular income. However, this is not always the case. Many lenders now offer competitive rates for self-employed borrowers, especially if you can demonstrate stable and consistent earnings. It’s important to shop around and work with a mortgage advisor to find the best deal tailored to your financial situation.

As a company director, securing a mortgage can be slightly different than for salaried employees. Lenders will typically assess your income based on your salary, dividends, and sometimes retained profits. They may require additional documentation such as your latest accounts, a SA302 tax return, and proof of your income over the last few years. Some lenders may have specific criteria for company directors, so it’s a good idea to consult with a mortgage advisor to find the best options available to you.

When applying for a self-employed mortgage, you’ll typically need to provide several documents to verify your income. These may include your last two or three years of tax returns (SA302 forms), your most recent business accounts, bank statements, and potentially a profit and loss statement. Lenders may also ask for details of your business and how long you’ve been trading. It’s important to ensure all your financial documents are up to date to improve your chances of approval.