Perhaps the most important factor in securing a mortgage when you’re self–employed is to keep good records that provide a clear picture of your financial situation over the long term.
For ordinary workers, lenders simply need to get in touch with their employer to confirm they have a steady source of income. But the picture can be muddier if you become self–employed, with the onus on you to provide hard evidence of both your income and the performance of your business. If you’re about to make the leap into self–employment, you’ll need to focus on good record–keeping right from the word go.
Lenders are keen to see well–ordered and up–to–date company accounts, generally going back two or three years, so bear that in mind from the start. You can offer up the annual accounts and tax records of your business to help prove your income, or provide a reference from a qualified accountant.
If you're applying for a Nationwide mortgage, we require self–employed applicants to have accounts for 2 years. Check out our mortgage application proofs guide for more information.