Being self-employed doesn't have to be a barrier to securing your dream home

With the right preparation and documentation, you can confidently navigate the mortgage process and unlock the doors to your new property. 

One crucial aspect to keep in mind is that lenders typically consider your income validity for only the last 18 months. This means that from 06/10/2024 onwards, you may need to provide additional evidence to demonstrate your ability to sustain mortgage payments.

Here’s what this means, we could either:

• Work from your 2024 Personal Tax Returns: If you are self-employed and applying for a mortgage on or after October 6, 2024, you might need to file and provide your 2024 tax return in advance, even if the tax year has not yet officially ended. This could mean filing your taxes earlier than the usual deadline.

OR 

• Work from a different document to the Tax Returns (SA100) and instead look to use your Full Profit and Loss accounts for exmaple. 

What evidence can be used for self-employed applicants?

Lenders will typically request your self-assessment tax returns, covering the most recent two to three years. These documents provide a comprehensive overview of your income and expenses, enabling the lender to assess your financial stability accurately.

Additionally, you may be asked to provide business accounts, bank statements, and contracts or invoices to corroborate your income streams further. The more documentation you can provide, the stronger your mortgage application will appear to the lender.

It's essential to remember that lenders are keen to understand the sustainability of your self-employed income. They want to ensure that you have a consistent and reliable source of income to meet your mortgage obligations comfortably.

Contact Hawke FS Self-Employed Income Advice

If you require personal advice, please do not hesitate to Contact a member of our friendly team here at Hawke as soon as possible.

You can speak with us on 0208 660 8613.