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Wednesday 11 March 2020
Wednesday 11 March 2020
Wednesday 11 March 2020
Wednesday 11 March 2020
Being self-employed or owning a business doesn’t mean you can’t secure a mortgage. Lenders understand the unique financial situations of self-employed individuals and have straightforward processes to determine how much they can lend. Whether you’re a sole trader, a partner, or a company director, you have options to obtain a mortgage that suits your needs.
How Lenders Assess Self-Employed Applicants
Sole Traders and Partners
For sole traders and partners, lenders primarily consider net profits when assessing mortgage affordability. The higher your declared profits, the greater the mortgage amount you’re likely to qualify for.
Company Directors
If you’re a company director, lenders typically assess your salary and paid dividends to determine your borrowing capacity.
Income Evidence Requirements
Lenders vary in the time frame they require for income evidence, but the most common expectations are:
Last 2–3 Years of Income: Most lenders will either average your income over this period or use the most recent year as the basis for their calculations.
SA302 Forms and Tax Returns: These documents are critical in demonstrating your income.
Handling Multiple Income Sources
Many self-employed individuals, such as freelance musicians, often have income from multiple sources. For example:
Self-Employed Work: Income from freelance projects is declared on tax returns.
PAYE Income: Some work, like teaching, might be taxed at source under PAYE.
Although these income types may appear differently on your SA302 form, with clear justification and proper documentation, both income streams can be combined and treated as part of your total income.
How We Can Help
At Barrett Mortgages, we understand the unique challenges self-employed individuals face when applying for a mortgage. Our expert advisors will:
Help you gather and present your financial information effectively.
Identify the best mortgage products tailored to your circumstances.
Guide you through every step of the process to secure your mortgage.
Get in Touch
Ready to explore your mortgage options? Contact our friendly team today.
Call us at 01202 733809.
Use our online contact form to get started.
Visit our office on Parkstone Road in Poole, Dorset.
Barrett Mortgages is here to make the mortgage process straightforward for self-employed professionals.
Being self-employed or owning a business doesn’t mean you can’t secure a mortgage. Lenders understand the unique financial situations of self-employed individuals and have straightforward processes to determine how much they can lend. Whether you’re a sole trader, a partner, or a company director, you have options to obtain a mortgage that suits your needs.
How Lenders Assess Self-Employed Applicants
Sole Traders and Partners
For sole traders and partners, lenders primarily consider net profits when assessing mortgage affordability. The higher your declared profits, the greater the mortgage amount you’re likely to qualify for.
Company Directors
If you’re a company director, lenders typically assess your salary and paid dividends to determine your borrowing capacity.
Income Evidence Requirements
Lenders vary in the time frame they require for income evidence, but the most common expectations are:
Last 2–3 Years of Income: Most lenders will either average your income over this period or use the most recent year as the basis for their calculations.
SA302 Forms and Tax Returns: These documents are critical in demonstrating your income.
Handling Multiple Income Sources
Many self-employed individuals, such as freelance musicians, often have income from multiple sources. For example:
Self-Employed Work: Income from freelance projects is declared on tax returns.
PAYE Income: Some work, like teaching, might be taxed at source under PAYE.
Although these income types may appear differently on your SA302 form, with clear justification and proper documentation, both income streams can be combined and treated as part of your total income.
How We Can Help
At Barrett Mortgages, we understand the unique challenges self-employed individuals face when applying for a mortgage. Our expert advisors will:
Help you gather and present your financial information effectively.
Identify the best mortgage products tailored to your circumstances.
Guide you through every step of the process to secure your mortgage.
Get in Touch
Ready to explore your mortgage options? Contact our friendly team today.
Call us at 01202 733809.
Use our online contact form to get started.
Visit our office on Parkstone Road in Poole, Dorset.
Barrett Mortgages is here to make the mortgage process straightforward for self-employed professionals.
