Prepare your documentation
To evidence the sustainability and level of your income, a lender will want to see at least two years of accounts, prepared and signed off by a chartered or certified accountant.
Each lender has their own policy when it comes to self-employed income. Some will average out your last 3 years income, some will accept your latest years income and others will opt for the lowest year to base their calculation on. Your broker will know the most appropriate lenders to approach based on your unique accounts.
Lenders will also ask for the corresponding SA302 forms, which show your annual tax calculations.
If you filed your self-assessment tax return online, you'll be able to access and pint the SA302 forms yourself here. Otherwise you’ll need to contact HMRC to request them.
As with standard applications, you’ll need to provide some ID. Your lender will ask for photographic ID, such as a passport or driving licence, and proof of address, such as a utility bill.
Your latest 3 bank statements will be used by the underwriter to assess your affordability. Your statements will illustrate how much you spend each month and how much money you have left over to make mortgage repayments. It's wise to keep this in mind on the lead up to your mortgage application.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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