Self-employed hub

Policies and processes relating to Self-employed customers


At a glance

We can help with your self-employed customer’s mortgage.  Here’s what you need to know:

  • The business must be based in the UK or Republic of Ireland

  • We’ve got specific guidance for self-employed applications:

Income and Packaging Hub

Affordability calculator

Have a look at these before completing an Agreement in Principle or Full Mortgage Application.

Sole traders

A sole trader is anyone who’s earned more than £1,000 from their own business in a tax year, which runs 6th April to 5th April.

To qualify for one of our mortgages a customer must:

  • submit their tax returns to HMRC or Irish Revenue Commissioners.

  • be trading for a minimum of two full years with trading figures from that time, including income from land and property. 

Information on mortgage applications for foster carers

HMRC treat foster carers as being self-employed, however, the SA302 is only used to determine any tax and NI payable after any qualifying amount has been deducted.

Foster carers should provide Local Authority confirmation of the last two years’ payments received, along with confirmation that the customer is still a registered foster carer.


We can help customers in simple Partnerships and in Limited Liability Partnerships (LLPs).

Limited companies

In a limited company the business is legally separated from its owners (shareholders) and managers (directors). It must be incorporated at Companies House. 

This type of structure limits the amount of liability the shareholders and directors have to their stake in the company, which means that the finances of the people who run it are separate from the personal finances of the shareholders or directors.

A limited company can keep any profits it makes after paying tax.  This means that if a shareholder or director of a limited company applies for a mortgage, they are only able to use the income that the limited company has paid them in salary or dividends (return on shares).

Acceptable accountants

Audited accounts are acceptable if they’re prepared by a person who is suitably qualified and a member of an organisation; for example chartered accountant or certified accountant who belongs to:

  • Association of Authorised Public Accountants.

  • Institute of Financial Accountants.

  • Chartered Institute of Taxation. 

  • Chartered Public Accountants.

  • Association of Accounting Technicians.

  • Chartered Institute of Management Accountants.

  • Association of Taxation Technicians. 

  • Institute of Chartered Secretaries & Administrators.

  • Association of International Accountants.

Please note that this is not an exhaustive list and other appropriate professional bodies are acceptable.