Self employed mortgage advice

magicno1

Hi
When remortgaging how is the lending criteria worked out as I am self employed with more than 5 years accounts.
Does the lender look at net profit or net profit after depreciation?
Regards

ACG

Net profit after depreciation? I have not come across that one before.

I am assuming you are a sole trader? It would be profit after costs but before tax. Most lenders would average out the last 2 years.

magicno1

Thanks for your reply
Over as many years as I can remember my accounts show gross profit then net profit then a final net profit after depreciation as in van and stock I presume.
If it’s net profit before tax across the lenders then all being well we should be ok.

payless

Depends on how you do your accounts

Tax calculation / sa302 is usually used.. this would be after capital allowances ( which may be considered similar depreciation , but given the various methods of claiming may be different )