Prepare the file

Sole trader mortgage evidence

A sole trader's income is the profit HMRC has assessed, not the turnover in the business account. Different lenders may average years differently.

SA302 or tax calculationThis is the profit figure after allowable expenses, which is the number most brokers start from.
Tax year overviewIt shows what was paid or still owed, so the calculation can be matched to HMRC's record.
How many years you have filedOne year and three years are different files. Do not stretch a short history to look longer.
Business and personal bank statementsThey show how drawings move into the account that pays the household.
Large one-off expensesA van, a refit or a bad debt can make one year look unlike the next. Note it before someone treats it as a trend.

What this page will not do

Turnover is not profit. A lender that uses net profit is not 'missing' income.
A draft spreadsheet is not a filed return. Mark anything unfiled as unfiled.
It will not name a lender, a product, or an approval chance.

Questions

Will both years be averaged?: Some lenders average. Others want the latest year, or the lower year. This page does not pick a method.
Can I use my drawings as income?: Drawings are cash you took out. They are not automatically the profit a lender will use.

MortgageConnector is a mortgage broker introducer and information service. We do not provide regulated mortgage advice. Where appropriate, we can introduce you to an FCA-authorised mortgage broker who can assess your circumstances and provide advice.

The matching service is free for you. Partner brokers pay MortgageConnector for introductions. If you ask for an introduction, the details you submit are shared with the selected partner. The broker is responsible for regulated advice. Check the firm on the FCA Register.

Your home may be repossessed if you do not keep up repayments on your mortgage.

These figures are illustrative.

An FCA-authorised broker can look at the actual income, credit and property. MortgageConnector introduces you. We do not choose the mortgage.

Find a broker experienced with sole traders