What income can be used?

Mortgage lenders will not be able to use your annual turnover, or even your gross profit. They will only be able to utilise the figure you declare and pay on your Tax Return. This is classified as a ‘Net Profit’ or ‘Income from Self Employment’. 

What evidence will need to be supplied?

For a Sole Trader we will need to see evidence of your most recent SA302. This is sometimes called a Tax Calculation or Tax Computation. This will need to be provided along with your most recent Tax Year Overview. If you file your own tax returns you can download these from HMRCs website by clicking here. You could also request one from your accountant if you have one. We will also usually need to see the last 3 months business bank statements to confirm your current trading levels. 

Other things to consider

1 Year Trading

YES, you can get a mortgage with only 1 years trading experience. This usually means that you will have either SA302 for year 1 or company accounts for a full 12-month period. There are more lenders open to this section of the market than people seem to think, so it is entirely possible to get a mortgage this way. You don’t always need 2 or 3 years’ worth of accounts behind you. 

Latest Years Income

It is true that some lenders will want to average out your last few years income. However, there are a few who will consider using your latest years income for the mortgage. For a growing business this can make an enormous difference, especially for those who have only been trading for two or three years. 


Obviously, the Pandemic has had some kind of impact on most people who are self-employed, whether this is an increase or a reduction in business. If you have taken any form of government support throughout the Pandemic this does NOT mean that you will automatically be declined for a mortgage. Each client will be considered on their own merits.