Actors / Actresses
Individuals working in the entertainment industry, including theatre, film, and television.

Agency Workers
Individuals employed through an agency rather than directly by the employer.

Contractors
Individuals who work on a contractual basis for a specific period, often in industries such as construction or IT; they can either be employed or self-employed.

Directors of Limited Companies
Individuals who hold directorship positions in limited companies, typically with significant control over the company's operations.

Employed Individuals
Individuals who are in traditional employment with a regular salary from an employer.

Freelancers
Self-employed individuals who work independently and are not committed to any single employer long-term.

Key Workers
Individuals employed in essential public service roles such as healthcare, education, emergency services, or public utilities.

Limited Liability Partnerships (LLPs)
Partnerships in which each partner's liability is limited to the amount they have invested in the business.

Sole Traders
Self-employed individuals who run their own business as a sole proprietor.

Sports Professionals
Individuals who earn income through professional sports activities, including athletes, coaches, and sports-related personnel.

Salary, Dividends & Net Profits

Typically, directors benefit from the flexibility of utilising multiple sources of income based on their unique circumstances, often resulting in a more tax-efficient position.

When assessing income for directors, lenders typically consider a combination of salary and dividends or salary and net profit from their company. They may base their evaluation on either the most recent year's figures or an average of the most recent two years.

In some cases, payslips may suffice for salaried directors, particularly if their percentage of ownership within the company falls below a certain threshold.

We recommend speaking with one of our advisers to determine the most suitable income assessment method for your situation.

Employed individuals have various payment options, and each lender establishes specific criteria when assessing income. While basic income and allowances are typically accepted due to their consistency and regularity, other forms of income such as overtime, bonuses, and commission usually require additional assessment. Lenders commonly use the average income from the last three months, which is then annualised for a more comprehensive evaluation. Below is a list of incomes we can accept: 

Basic Salary 
Lenders generally consider basic salary as a stable and reliable source of income because it is guaranteed by the employment contract.

Overtime
Lenders may accept overtime income as part of the applicant's total income, but they typically require evidence of a consistent history of overtime earnings to demonstrate its reliability. Some lenders may limit the proportion of overtime income they include in the affordability assessment to account for its variable nature.

Bonuses
Mortgage lenders may consider bonuses as part of an applicant's income, but they usually require evidence of a consistent bonus history, such as previous bonus payments over a specified period. The treatment of bonuses in mortgage affordability assessments can vary among lenders, with some averaging bonus income over a specific period to determine its inclusion in the affordability calculation.

Commission
Lenders may accept commission income as part of the applicant's total income, but they often require evidence of a consistent commission history and may apply a lower percentage of commission income to the affordability assessment to mitigate risk.

Allowances 
While some allowances may be considered as part of an applicant's income, lenders typically assess them on a case-by-case basis and may require documentation to verify their nature and stability.

Overall, while these types of income can be accepted for mortgage applications, lenders may have varying criteria and requirements for each income source.

There are various types of additional income that can be considered for an affordability assessment with lenders. The more common include:

Benefits
Lenders may consider certain government benefits as income, especially if they are stable and ongoing. Documentation such as benefit award letters, bank statements showing benefit deposits, or tax returns may be required to verify benefit income.

Child Maintenance
Lenders may accept child maintenance payments as income, particularly if they are court-ordered or documented through a formal agreement. Documentation such as court orders, legal agreements, or bank statements showing regular child maintenance payments may be required.

Investments
Lenders may consider investment income as part of an applicant's total income, depending on the stability and reliability of the investment returns. Documentation such as investment statements, brokerage statements, or tax returns may be required to verify investment income.

Pension
Lenders may accept pension income as part of an applicant's total income, particularly if it is guaranteed and stable. Documentation such as pension statements, award letters, or tax returns may be required to verify pension income.

Rental Income
Lenders may consider rental income as part of an applicant's total income, when they own additional properties that generate rental revenue. Documentation such as rental agreements, bank statements showing rental income deposits, and tax returns may be required to verify rental income.

Trust Fund
Lenders may consider income received from a trust fund as part of an applicant's total income, especially if it is consistent and reliable. Documentation such as trust agreements, distribution statements, or tax returns may be required to verify trust fund income.

In summary, while these types of additional income can be considered for affordability assessments, the acceptance and treatment of each income source may vary depending on the lender's policies and criteria. It's essential to provide accurate documentation to verify the income and consult with a mortgage adviser to determine how these sources of income may be considered in your affordability assessment.

1 Year - 3 Years Accounts

When an applicant derives income from self-employment, lenders typically require documentation such as their tax return, specifically their SA302 forms and Tax Overviews. SA302 forms are typically located at the end of the tax return, while Tax Overviews are provided by HMRC upon completion of a full tax submission.

Lenders may request between 1 to 3 years' worth of these documents to substantiate income. The exact requirement varies depending on the lender and their specific criteria. In order to determine your income a lender will use either the most recent years figures or an average of the most recent 2 years.

4.49x - 6x income

Many lenders typically provide a mortgage amount of up to 4.49 times your annual combined income when the loan-to-value (LTV) ratio is below 15%. However, if the deposit or equity is 15% or more, some lenders may consider extending the income multiple to 5 times.

For applicants utilising mortgage schemes like Helping Hands or Professional Mortgages, lenders may allow for a higher income multiple ranging from 5.5 to 6 times your annual combined income.

To explore the best options suited to your circumstances, we recommend speaking with one of our brokers.