Getting a mortgage when you are self-employed can be slightly more difficult than when you are in regular employment. Lenders use payslips as proof of income to assess mortgage affordability but for self-employed applicants, other paperwork is usually required.
There are around 4.4 million self-employed people in the UK, with many mortgage products to choose from, so finding a suitable mortgage should not be a problem if you meet the eligibility criteria.
How do self-employed mortgage applicants prove income?
An applicant’s income is one of the key measures used to evaluate a mortgage application. It helps to identify how much a person can realistically afford to pay each month, after other outgoings are taken into account.
If you are self-employed and want to apply for a mortgage, you don’t receive payslips to use as evidence of income, so lenders will request to see other types of evidence.
Key documents you may need
- Two or more years of certified accounts.
- 3 months to 3 years of personal and business account statements (to check regular deposits).
- SA302 (evidence of earnings based on self-assessment tax returns).
In addition to these documents, you will be requested to provide proof of ID and proof of address, which is standard for all types of mortgage applications.
