Posted: 12th September 2016
For the newly self-employed this information might be useful if your bank or lender won’t lend to you.
When you are self-employed, many lenders want three years’ accounts or SA302s, sometimes two years are fine. Affordability needs to be assessed, and they do this by averaging the latest three or two years net profit. If the net profit decreased, they will use the lowest figure. There are a few lenders who are satisfied to use the latest year’s figures.