Mortgages
Getting a mortgage when you're self-employed
1 min read · Updated
The short answer
Most lenders want two years of self-employed income, shown by your SA302 tax calculations and tax year overviews from HMRC. A few will lend with one year. They usually work from your profit, not your turnover.
What lenders ask for
- Your SA302s: the tax calculations HMRC works out from your Self Assessment returns.
- Tax year overviews, which show the tax was paid.
- Sometimes your accounts, signed off by an accountant, and recent business bank statements.
You can download SA302s and tax year overviews from your HMRC online account. Remember a tax year's return may not be filed until the following January, so plan when you apply.
How your income is worked out
- Sole traders: your net profit, often an average of the last two years. If profit fell, they may use the lower year.
- Company directors: usually salary plus dividends. Some lenders use your share of the company's profit instead, which can help if you leave money in the business.
- Contractors on day rates: some lenders work from your day rate instead.
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A guide, not financial or legal advice. Rules and rates change, so check with your lender, broker or solicitor. Where our numbers come from.