How lenders assess income
Self-employment does not prevent mortgage borrowing, but lenders differ in how they assess sole traders, partnerships and company directors. They may use profits, salary and dividends, or another measure supported by the accounts.
Evidence to prepare
Clear, consistent records reduce avoidable delays. Exact requirements vary by lender and complexity.
- Finalised accounts and tax calculations
- Tax year overviews and business bank statements
- Details of existing commitments and deposit source
Plan before applying
Large changes in income or business structure may need explanation. Speak to an accountant before changing how income is drawn purely for a mortgage application, as tax and lending considerations are different.