We define self-employed customers as those who:

• Are operating as a sole trader/partnership, or
• Are a shareholding equity partner in a Limited Liability Partnership (LLP) where they have been in continuous employment with their firm for a minimum of two years as an employee or partner/shareholder, or
• Have a shareholding of 20% or more in a limited company. This is the combined shareholding of all customers on the mortgage application who are associated with the same business.

We require proof of the latest 2 years’ trading for all self-employed customers, but we use the latest year’s accounts for our affordability assessment.

Where a customer has been trading for more than 1 year, but less than 2, we can still consider the application subject to evidence being provided of a track record of previous employment at a similar level of income in a similar line of work. E.g. a customer who works as a plumber with a 2024 tax return showing £60,000 and a 2023 P60 showing an income of £50,000.

Where the trading has reduced, we will reduce the income accordingly.

The maximum LTI is 4.49 where the primary customer is self-employed. The customer with the higest income is classed as the primary customer.