How lenders assess self-employed income
Lenders want to see a track record. Most look for one to three years of accounts or tax calculations (SA302s). Sole traders are usually assessed on net profit, company directors on salary plus dividends (and sometimes retained profit), and partners on their share of profit.
What you’ll typically need
- Two to three years of accounts or HMRC tax calculations and overviews.
- Business and personal bank statements.
- Proof of ID and address.
- Details of any regular commitments.
Newer businesses can still find options — some lenders accept one year’s figures.
How to improve your chances
Keep your accounts up to date and filed, minimise unnecessary business withdrawals in the run-up to applying, and maintain a healthy credit profile. Choosing a lender whose criteria fit your income shape matters more than chasing the lowest headline rate.
Why advice helps most here
Lender criteria for self-employed applicants vary widely. As a whole-of-market broker, we know which lenders take a sensible view of your situation and how to present your case — which can be the difference between a decline and an approval.
This guide is general information, not personal financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.