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Self Employed

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Application β†’ All guides

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A - Z of Application criteria
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Deposit sources
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Direct Debits
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Early repayment charges
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Interest
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Tenure
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Loan to income multiples
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Loan purpose
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Loan size
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Location
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Maximum LTV
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Mortgage Term
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Offer validity
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Overpayments
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Payment holidays
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Porting
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Rate switches
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Remortgage & Additional Borrowing
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Repayment methods
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Adverse Credit
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Age
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Applicants
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Asylum Seekers
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Boosters
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Commitments & Expenditure
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Customer Verification
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Dependants
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Expat
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First-Time Buyer
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Home Movers
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Non UK Nationals
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Overseas applicants
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Owners
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Retirement
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Students
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Vulnerable Customers

Income and employment β†’ All guides

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A - Z of Income types
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Benefit income
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Contract workers
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Employed
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Foreign currency income
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Holiday Lets
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Minimum incomes
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Other income types
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Parental Leave
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Pay increases
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Pension
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Piecework
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Rental income
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Retirement income
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Self Employed
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Stipend Income
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A - Z of Property types
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A - Z of Purchasing schemes
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Bedroom count
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Construction types
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Current value
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Discounted purchase price
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Flood Risk
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Help to Buy
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Leasehold
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New builds
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New Build; Incentives & Part Exchange
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Property Charges
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Property values
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Retentions
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Tenure types
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Valuations

Packaging guide β†’ All guides

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Employed income
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Investment income
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Maintenance income
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Parental Leave
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Rental income
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Self-employed income
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Sole traders income
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Address verification
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Additional support
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Identification
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Miscellaneous
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Occupier’s consent
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Proof of deposit
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Retirement plans and pension

Generation Home Products and Services β†’ All guides

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Registering on our panel
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Income boosters
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Deposit boosters
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The Home Agreement
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Conveyancing
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ILA
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Toolkit for your clients
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Toolkit for you
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Tariff of Mortgage charges
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Terms of Business
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Privacy notice

Self Employed

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The maximum LTI (loan to income) limit where the primary borrower is self employed is 4.49x the total income.

We will accept and class a self employed borrower as someone who receives income from;

  • Sole trading
  • Partnerships
  • LLP or Limited Companies (shareholding of 20% and above)
  • Rental Income
  • Investment Income

As standard we require proof of 2 years worth of trading for all self-employed applicants. Where a customer has been trading for less than 2 years, we may proceed where there is evidence of a track record of previous income at a similar level and from a similar line of work.

For all Self Employed applicants we will require the latest 3 months bank statements showing trading (Business or personal) to ensure that current earned income is consistent with that of the latest accounts/self-assessment. Where the trading has reduced we will reduce the income accordingly.

Sole Trader/Partnerships

We will take the latest year's income for the affordability assessment where the income is deemed to be sustainable. Where there have been large increases or decreases in the year on year profit/income, please provide us with full details. We may ask for additional documents to ensure income used is sustainable.

Limited Liability Partnership (LLP)

We will take the latest years salary and dividend as evidenced by the latest 2 years Sa302s, corresponding TYO and the latest 3 months bank statements. *A partner must have a minimum of 2 years as an employee or equity partner/shareholder.

Limited Company (Ltd)

If the applicant has a shareholding of less than 50%, we would accept Dividends and Directors Salary for the affordability assessment. We will check the NET profit for the company to ensure that the applicants income is sustainable.

If the applicant has a shareholding of 50% or more, we would use Director's salary and Share of NET profit for the affordability assessment. We will check the NET profit for the company to ensure that the applicants income is sustainable.

We will not accept Dividends where the applicant’s drawings exceed the NET profit of the business for the latest year. Where the Dividends exceed the Net profit, we will only accept the share of the Net profit for our affordability calculations.

For Acceptable Accountants Qualifications refer below;

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Acceptable Accountants Qualifications

Please refer to our self-employed packaging guides for document requirements: