One of the most common questions we get asked is – if I’m self-employed, how will lenders assess my income and affordability? In this blog, we give an overview of the different ways that lenders assess the income of the self-employed for the purpose of mortgage lending.
If you are self-employed than mortgage lenders will assess your income based on their criteria for self-employed applicants. This includes sole traders, contractors, and company directors of a limited company or partnership. A special mention should also go to the Construction Industry Scheme ( CIS ) as lender asses the income from this scheme in a different way.
There’s a wide variety of mortgages which are suitable for self-employed people. It’s always worth speaking to a whole-of-market mortgage broker, such as the broker Hey Mortgages, regarding your needs. This is because here are some lenders out there that specialise in these products. The general public would not have access to some of their deals.