Applying as self employed for mortgage

PrincessLou

We are looking to move house in 2 years time. My husband has a fairly well paid regular job, whereas I am now part time self employed.

My question is - my income from year to year fluctuates depending on how much work is around and how much time i am looking after the children. When you apply for a mortgage how do they calculate how much you can borrow based on your earnings, if for the past three years they were completely different?

kingstreet

You will normally see your last two years' net profit from your HMRC SA302s averaged to provide the income figure lenders take into account.

If the latest year's net profit is lower than the previous year's you may see the lender take the latest year's net profit alone as the average would have been higher.