Understanding how lenders may assess self-employed income

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Mortgage Bridge does not assess mortgage suitability, determine eligibility, recommend products or make lending decisions. Any review of enquiry information by Mortgage Bridge is administrative only. Any regulated mortgage advice is provided separately by an adviser acting through a network authorised and regulated by the Financial Conduct Authority, following an assessment of your individual circumstances.

References to income averaging, the latest accounting year, retained profits or contract-based calculations describe approaches that some lenders may consider. They are not rules that apply to every lender. Acceptance of an income source, the amount recognised and the evidence required depend on current criteria and the individual application.

Company turnover, company profits and an individual's income are different figures and should not be treated as interchangeable. References to retained profits do not mean that all company profits will be accepted as personal income. These guides do not recommend changing salary, dividend payments or business arrangements to obtain a mortgage.

The self-employed income calculator provides an illustration based on its inputs and assumptions. It does not confirm the income a lender will accept, how much you can borrow or whether you are eligible for a mortgage.

Mortgage availability depends on individual circumstances, affordability, credit history, the property and current lender criteria. Acceptance is not guaranteed. Criteria, products and evidence requirements can change. An adviser acting through an FCA-authorised and regulated network can assess your circumstances and explain which options, if any, may be available.

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