What constitutes proof of income for a self-employed person?
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nandoDave
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
all lenders have their own requirements for income which still impact on the employed!
common requirements for the self employed can be full accounts drawn up by a qualified individual; self assessment return (the printed version HMRC post out not a home printed document); some lenders will ask for personal banks statements only. Some lenders will want all the above for the last 2 or 3 years.
this is a part of the filtering process that an IFA will look through when researching mortgage options for you and another reason to take advantage of someone with up to date industry knowledge rather than a pundit on a tv show or newspaper website column!
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common requirements for the self employed can be full accounts drawn up by a qualified individual; self assessment return (the printed version HMRC post out not a home printed document); some lenders will ask for personal banks statements only. Some lenders will want all the above for the last 2 or 3 years.
this is a part of the filtering process that an IFA will look through when researching mortgage options for you and another reason to take advantage of someone with up to date industry knowledge rather than a pundit on a tv show or newspaper website column!
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Usually proof of income through prepared accounts or receipt of your self assessment from the inland revenue. Most lenders require 2-3 years evidence
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Expert Financial Adviser Answer
John Stirling
answered 1 year ago
It depends on the lender - anything from an accountants declaration at the low end to full accounts, and supporting bank statements, and HMRC paperwork at the high end.
Although requirements vary between lenders, they also tend to vary within lenders depending on the loan to value - as a general rule the more you borrow, the higher the standard of evidence required.
There is no longer any such thing as 'self cert' where the evidence required is a statement from you - although some lenders will still do an element of 'fast track' where for the lowest loan to value, and highest credit score customers they will take some things on trust, but this is fast disappearing as lender experience hasn't always been the best with that method...
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Although requirements vary between lenders, they also tend to vary within lenders depending on the loan to value - as a general rule the more you borrow, the higher the standard of evidence required.
There is no longer any such thing as 'self cert' where the evidence required is a statement from you - although some lenders will still do an element of 'fast track' where for the lowest loan to value, and highest credit score customers they will take some things on trust, but this is fast disappearing as lender experience hasn't always been the best with that method...
