As a self-employed person lenders require different documents when applying for a mortgage to those in an employed position .
Most mortgage lenders require confirmation of your last 2 years self-employed earnings – these are known as SA302 or tax computations along with your last 2 years tax overviews ( a limited number of lenders will accept 1 years figures ).
These documents are issued by HMRC which is the confirmation of your annual earnings declared to them in each tax year which also shows how much tax you have to pay.
Most self-employed people use an Accountant who can supply these documents or if you submit your own accounts they are usually available via the HMRC GATEWAY – failing that they can be requested direct from the HMRC if needed.
The current tax year runs from 6th April 2024 to 5th April 2025.
There are various ways a person can be seen as self employed –
Sole Trader ( ie a one man business )
Partnership ( two or more partners in the company / firm )
Limited Company Director ( Director of Limited Company )
Lenders who require 2 year figures will usually average your income over the last 2 years subject to the latest years income being higher than the previous years – however if the latest figures are lower than the previous years lenders will take the lower income figure and not the average.
Lenders who take the latest years income only work on that year’s figure.
Sounds complicated does’nt it – so why not contact MANCHESTER MORTGAGES on 0161 706 0242 or complete our contact form and take advantage of one of our experienced advisers to discuss your circumstances and what options you have,
