Important Warning: Changes to Income Evidence for Self-Employed Mortgage Applicants. Self-employed and planning to apply for a mortgage soon?
If you’re self-employed and planning to apply for a mortgage soon, please be aware of significant changes to income evidence requirements that may impact your application.
From Monday, 7 October, most lenders will no longer accept income evidence where the most recent year end is from the 2022/2023 tax year. This means you will need to provide more up-to-date income documentation to meet the new requirements.
Why Is This Important?
For all self-employed applicants, the most recent year end for income evidence must not be more than 18 months old at the time of your mortgage application. If you’re planning to use older tax returns, your application may be delayed or even declined.
Don’t Be Caught Off Guard
We encourage all of our self-employed clients to act now to avoid any unexpected surprises. If your most recent accounts are for the 2022/2023 tax year, they will no longer be accepted by most lenders. You’ll need to provide income evidence from the 2023/2024 tax year or later.
What Should You Do?
Reach out to your accountant and ensure your latest financial records are up-to-date.
Prepare ahead of time if your current income evidence is nearing the 18-month cut-off.
Contact us if you’re unsure whether your income documentation meets these new lender requirements.
By taking these steps now, you can avoid unnecessary delays or issues with your mortgage application. We’re here to help guide you through the process, so feel free to get in touch with any questions or concerns.
Get in Touch
If you are interested in exploring mortgage options, we are here to help. Contact Prospect Tree Mortgages today to schedule a consultation with one of our expert advisors. Let us help you navigate the mortgage market and secure the best deal for your future.
Call us at 0800 8620 840 or visit our website at http://www.ptmortgagesltd.co.uk to learn more.
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 02.10.2024.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.