If you're self-employed and planning to apply for a mortgage, it's important to understand that lenders will need to see clear evidence of your income, identity, and financial stability. While the core requirements are similar to those for employed applicants, there are more ways your income can be taken into account and proving income can be more complex, with requirements varying depending on your business structure. Fortunately, your mortgage adviser is here to guide you through the process and help you meet the specific criteria of your chosen lender.
Identity and Address Verification
To comply with legal requirements, lenders must confirm your identity and current address. The documents listed below will help establish your residency and identity. You’ll need:
• A valid passport or photo-card driving licence
• A recent proof of address (dated within the last 3 months), such as a bank or credit card statement, utility bill, council tax bill, or HMRC notice
• A visa, if applicable
Proof of Income for Self-Employed Applicants
Some lenders may accept an accountant’s reference in place of certain documents. Your adviser will let you know if this is an option and help coordinate with your accountant, if needed. Income verification for your mortgage application will depend on how your business is structured:
• Sole Traders: You’ll need your last 2 years’ tax calculations and the corresponding tax year overviews
• Limited Company Directors (with 25%+ shareholding): Provide your last 2 years’ signed trading accounts (signed by both you and your accountant), along with tax calculations and tax year overviews
• Partnerships: Submit your last 2 years’ tax calculations and tax year overviews
• Business bank statements for the most recent 3 consecutive months are also required.
If you have only been trading for 1 year, or have recently changed the structure of your income we can still help. Your adviser will provide further detail on this based on your personal circumstances.
How to Obtain Your Tax Documents
You can access your tax calculations and tax year overviews online via HMRC:
1. Visit www.online.hmrc.gov.uk and log in
2. Navigate to Self-Assessment
3. For your Tax Calculation: Go to View your tax return → Tax return options → View return → View and print your calculation A visa, if applicable
4. For your Tax Year Overview: Go to Self Assessment overview → View account → Tax years → Select year → Print
Alternatively, your accountant can provide these documents for you. If you don’t have internet access, you can request them by calling HMRC on 0300 200 3310.
How Your Mortgage Adviser Will Support You
Navigating mortgage requirements as a self-employed applicant can be complex, but your mortgage adviser is there to make the process more manageable. They will clarify which documents are needed based on your business structure and the specific lender you’re applying with. Your adviser will also assist in gathering and formatting your paperwork correctly, and if necessary, coordinate directly with your accountant to obtain essential documentation. Before your application is submitted, they’ll ensure everything is complete and aligned with the lender’s criteria.
Being self-employed doesn’t mean getting a mortgage has to be difficult. Call us on 08000 38 37 36 to speak with a specialist who can walk you through the process and answer any questions you have, or you can enquire here.
