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Mortgage for self-employed - Initial advice
Unicorn79
Posts: 80 Forumite
Hello there
I have just completed my first full year as a sole trader. My question is, how many years books do you generally need to be considered for a mortgage whilst being self-employed? And lenders look at taxable income, do they look at pension as an outgoing? I am looking at paying into a pension for the first time, however, this is my optional outgoing as I pay in the months I can afford - but will this bring down the total income figure which the lenders will use to view?
I am aware I need to slim down the taxable expenses to look appealing to lenders, however, I would like to know if pension payments are considered. I need to focus now on my finances, ready to look to buy as soon as I am able to!
I have just completed my first full year as a sole trader. My question is, how many years books do you generally need to be considered for a mortgage whilst being self-employed? And lenders look at taxable income, do they look at pension as an outgoing? I am looking at paying into a pension for the first time, however, this is my optional outgoing as I pay in the months I can afford - but will this bring down the total income figure which the lenders will use to view?
I am aware I need to slim down the taxable expenses to look appealing to lenders, however, I would like to know if pension payments are considered. I need to focus now on my finances, ready to look to buy as soon as I am able to!
0
Comments
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As a sole trader you will be assessed on Net Profit only. If you were Ltd or partnership then there is more flexibility but sole trader will be looking at that Net Profit.
1 year accounts has a few options but 2 is better0
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