• We generally take the annual salary and applicant's share of pre-tax profit into account when calculating how much we can lend. This will be dependent on a full accountant's reference to confirm the feasibility and sustainability of using this calculation of both salary and profit before tax.
• All shareholding company directors and those sole trader/partner applicants with total income greater than £50,000 must produce 2 years full accounts produced by a suitably qualified accountant.
• Sole trader/partner applicants with a total income of less than £50,000 may produce 3 years SA302 tax assessments and corresponding tax overview documents to evidence income, providing the income evidenced is stable or rising.
• Where profits have increased by more than 10% we may look to obtain further clarification from the accountant as to whether this level is sustainable and why.
• We will not agree applications if there are concerns about the business, even if the income is adequate and affordability is proven for the required mortgage.
• Additional consideration will be required where:
  • profit has reduced or increased significantly
  • short term liabilities exceed liquid assets
  • the business appears insolvent
  • dividends have exceeded profit after tax

Still got questions? Contact your BDM - or view our full criteria.