Mortgages for all types of self-employed
Our standard self-employed policy is detailed below. For criteria relating to contractors, please follow the links at the bottom of the page.
Your clients affordability is assessed against their latest two years income figures and underwritten against 100% of salary and dividend.
Affordability is assessed against an average of their last two years net profit. SA302’s with associated tax year overview are required to support the application.
A current years projection from a suitably qualified accountant may also be considered as part of our underwriting assessment subject to terms and conditions.
A three year average may also be applied to offset a reduction. Cases are considered on an individual basis provided that a satisfactory explanation can be given for any decline and an accountants projection is available to support the application.
For criteria relating to contractors, please follow the links below.
Gross income used to determine the maximum level of borrowing
Sub-contractors in long term single employment will be underwritten on an 'employed' basis as long as they can satisfy the specific criteria.
Partners in professional partnerships do not need to provide full accounts to support their application. Where the case is 85% loan to value or below, we will underwrite against an income reference supplied by the partnership’s accountant, a senior partner or practice manager.
Newly qualified dentists
As the final part of their training, dentists will complete 12 months employment within the NHS. At which point many will move to a private practice, often on a self-employed basis which can limit the availability of mortgage finance.
In these circumstances, we will underwrite applications from recently qualified dentists, subject to the set criteria.
We can consider applications where your client is employed by two practices, however they will be subject to Credit Committee approval.