Self-employed and remortgaging: what lenders look at

Many lenders ask for your tax calculations and tax year overviews from HMRC, or your accounts, often for the last two years. Recent business and personal bank statements are often asked for too.

Lenders look at income differently depending on how you work:

• Sole traders. Usually your net profit, from your tax returns.
• Partners. Usually your share of the partnership's profit.
• Limited company directors. Often your salary plus dividends. Some lenders may also consider your share of the company's profit.
• Contractors. Some lenders work out income from the day rate on your current contract.

• Income that has changed between years. Many lenders use the lower year, or an average, if your income has gone up or down.
• How you pay yourself. A low salary with dividends can mean a lower assessed income with lenders that look only at salary and dividends.
• Your current lender. If your payments are up to date, a new deal with your current lender may involve fewer income checks than a new application.

Whether a lender accepts your case depends on its own criteria. A broker from our panel can tell you which lenders consider income like yours before anything is applied for.

• Your tax calculations and tax year overviews, or your accounts
• Recent bank statements, business and personal
• Your accountant's details, if you have one; some lenders ask for them
• Your current lender, the balance, the date your deal ends and any early repayment charge