Self-Employed Mortgages

If you are a Sole Trader or Partner lenders will generally request copies of your last 2 years tax calculations and corresponding HMRC overviews.

If you are an Equity Partner in a Law or Accountancy firm, they will often accept an income reference from the managing partner or finance partner.

For Company Directors they will either request the last 2 years tax calculations & HMRC overviews and / or your last 2 years certified accounts for the business.

In all instances we will input your income into the lender’s affordability calculators and advise of the maximum loan available.

For Sole Traders and Partners, you can generally borrow up to 5 x the average of your last 2 years earnings as evidenced on the tax calculations or reference.

For Company Directors we will assess your tax calculations and certified accounts and then approach the most appropriate lender depending on the figures highlighted within the tax calculations and accounts as their can be wide differences in what lenders are prepared to lend to Company Directors as some will only base their decision on the salary and dividends drawn, whilst others will factor in any retained earnings.

Some lenders will cap the LTV at 80% of the purchase price if you are self-employed, however, many lenders place no restrictions on the LTV whether you are employed or self-employed hence you can obtain mortgages up to 95% LTV.

In most cases the answer is yes but it will be dependent on the industry you work in and what you did prior to becoming self-employed.

If it is the same industry a number of lenders will be comfortable lending to you, but even if it is a different industry, we have access to specialist lenders that frequently provide mortgages when there is only 1-years accounting information.