What do we do?

We know that it may feel like an uphill battle to get a mortgage if you’re self-employed. With over 15% of the UK population now working for themselves, we recognise the importance of adapting to the evolving needs of aspiring mortgage borrowers. 

Some lenders may require self-employed applicants to pick from a specific suite of products, with LTV’s that are lower than those for standard employment. We will allow self-employed applicants with two years of accounts to access our full product range. This includes access to our Self-Build, Ex-Pat, Interest-Only, Holiday Lets, Right-to-Buy and Joint Mortgage, Sole Proprietor offerings.

In addition to this, we provide solutions for self-employed applicants with only one year's accounts. The one year's accounts caps the LTV to 75% on all products.

Our key criteria
Self-Employed Definition

A self-employed applicant may be a sole trader, a partner in a business or a Director who owns more than 25% of a company.

Self-Employed Income – Assessment of Income

The Society will use the income shown in the Accounts or Accountant’s letter.

If profit has increased by more than 25% in the last 12 months an average of the last 3 years’ net profits will ordinarily be used. It will be permissible to use the latest figures where there has been more than a 25% rise if a satisfactory explanation can be given and the Underwriter is satisfied that the increase is sustainable.

For a Director who owns more than 25% of a limited company, we will use the remuneration for the Director plus their share of regular dividends based on an examination of dividends paid in the last 3 years.

Please note we accept SA302's or, Tax Calculations with corresponding Tax Overviews as proof of income.

Applicants with less than one full year’s trading history

The Society will expect a self-employed applicant to have been self-employed for at least a year, and to be able to provide accounts for the first year’s trading together with a projection for the current year from their accountant.

Self-Employed Contractor Applicants

A sub-contractor will typically be:

  • A sole trader
  • Operating with one client at a time
  • Undertaking work of a nature consistent with previous employment

Income may be calculated daily, weekly or monthly. Where a day rate is available, the Society will annualise income based upon an assumed 48 week working year. A 5-day working week is usual unless proof is received to the contrary.

The applicant must be able to demonstrate industry experience and where the contract is less than 12 months old the Society will use an average of the contract income and the earned income from the most recent P60, to arrive at a 12 month figure.

Accountants Qualifications

Accounts or Accountant's letters must be prepared and signed by a professionally qualified Associate or Fellow of one of the following bodies:


  • Institute of Chartered Accountants of England and Wales (ICAEW)
  • Institute of Chartered Accountant of Scotland (ICAS)
  • Chartered Accountants Ireland (CAI)
  • Association of Chartered Certified Accountants (ACCA)
  • Chartered Institute of Public Finance and Accountancy (CIPFA)
  • Association of International Accountants (AIA)
  • Association of Authorised Public Accountants (AAPA)
  • The Chartered Institute of Management Accountants (CIMA)
  • The Chartered Institute of Taxation (CIOT)
  • Association of Accounting Technicians (AAT)
  • Institute of Financial Accountants (IFA)
  • Association of Taxation Technicians (ATT)

If the accountant is not so qualified, the accounts must be supported by the corresponding years’ Tax Returns and tax assessments/self-assessments issued by the HM Revenue & Customs. Normally we would expect the Accountant to have acted for the borrower for a minimum of 2 years.

The end of the latest financial year/tax period covered must be no older than 18 months.


Contact Us

Contact our Intermediary Team with any case queries you may have.

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