With self-employed mortgages there’s no ‘one size fits all’ approach. We understand that your client's income will inevitably fluctuate and company structures can vary. That’s why our underwriters consider the unique nature of each client's business and will assess your client’s income accordingly.
Our flexible approach to lending enables us to assess each application on an individual basis, no matter how complex your client’s income. Benefits of our self-employed mortgages include:
We’ll look at pre-tax profits when assessing affordability.
We’ll consider all streams of income when making a decision.
The capacity to earn additional incomes would also be considered.
We’re often able to lend to clients that other lenders cannot.
Self-employed mortgage criteria
We generally take the annual salary and applicants share of profit before taxation into account when working out how much we can lend. This will be dependent on a full accountants reference to confirm the feasibility and sustainability on 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% the Society may look to obtain further clarification from the accountant as to whether this level is sustainable and why.
The Society 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
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