Well the answer is yes, subject to the lenders affordability assessment and criteria. Most lenders will require you to provide at least 2 years audited accounts by a chartered accountant as proof of income. If your accounts show steady or increasing profits this will help the lender in their assessment of your application and risk profile.
There are different ways in which you can be self-employed such as:
Limited Company – If you are part of a Limited company there are various ways that you can take income. You may pay yourself a salary from the business or you may choose to take dividends from the company. Either are acceptable to mortgage lenders.
Sole Trader – Examples of this are freelancers, tradespeople, typically someone who works on their own. In this case most lenders will seek your SA302’s and Tax calculations (typically the last 3 years) as these breakdown your total income received and total tax paid.
Partnership – If you are in a business partnership then mortgage lenders will base your affordability on your individual share of the businesses profits.
It is important that when applying for a mortgage that you have your accounts up to date. Another thing to remember is that whilst your accountant can legally minimise your declared income for tax purposes which means that you pay less tax, this also means that your accounts will show less profit when the mortgage lender is assessing your affordability for a mortgage.
Mortgage Lending criteria is subject to change. Speaking with a mortgage broker can help point you in the right direction.
