Self Employed and Contractors
Self employed directors, sole traders and contractors have different income patterns to those with a regular income and this can affect mortgage eligibility.
At The Mansfield, each application is assessed by one of our expert underwriters on a case by case basis. Detailed below are some of the ways we proactively help self employed people to get a mortgage that meets their needs.
All of our residential mortgage products are available to self employed applicants on properties located across England and Wales.
To see what types of mortgages are currently available, please feel free to compare mortgages from our range. You can also speak to our sales team on 01623 676345 to find out more.
Limited Company Director & Sole Trader Income
When assessing affordability for limited company directors we will use:
- 100% of the gross dividend, if a shareholder/director of a limited company
- 100% of Directors remuneration, if a director of a limited company
For a self employed sole trader or partner, we will use 100% of the net profit when assessing affordability.
Self Employed Proof of Income
Proof of income for self employed directors and sole traders depends upon the type of mortgage required and the overall loan in relation to the value of the property (the loan to value or LTV) of the mortgage, however typically we will consider:
- 2 years trading accounts required for mortgages up to 90% LTV
- 3 years trading accounts required for mortgages 90-95% LTV
- We will consider 1 year Limited Company accounts with 1 or 2 years previous sole trader/partnership income, where there has been a continuation of the same line of business
Note: We usually require formal trading accounts, however we will consider HMRC agreed tax assessments instead of, or alongside, trading accounts.
Self Employed Contractors
For self employed contractors we will lend up to £300,000 subject to the following loan to value and income limits:
|Max LTV||Max Loan Size||Min Income||Contract Evidence|
|80%||£300,000||£35,000 per annum net of expenses||Continuous contracts across a minimum 24 month period*|
|80%||£200,000||£25,000 per annum net of expenses||Continuous contracts across a minimum 12 month period**|
|70%||£200,000||£20,000 per annum net of expenses||Current contract in place*|
*The remainder of the contract must be greater than or equal to 6 months at the date of the mortgage approval.
**The remainder of the contract must be greater than or equal to 4 months at the date of the mortgage approval.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE