Documentation for self-employed mortgages

An SA302 is a summary of your income as calculated by HMRC based on your Self Assessment tax return. It shows your total income, tax due, and any payments made. Most mortgage lenders accept SA302s as primary evidence of self-employed income.

You’ll typically need SA302s for the last two to three tax years. Make sure you file your Self Assessment promptly each year — late filing delays SA302 availability and can create unnecessary hold-ups in your mortgage application.

A tax year overview is a snapshot of your tax position for a specific year. It shows the tax charged, payments made, and any balance due. Lenders use it alongside your SA302 to verify that the figures match and that your tax affairs are in order.

You can download tax year overviews from your HMRC online account. They’re available for each year you’ve filed a Self Assessment return. Like SA302s, you’ll typically need the last two to three years.

If you’re a limited company director, lenders will want to see your company’s full statutory accounts in addition to your personal SA302s. These should be prepared by a qualified accountant and typically cover the last two to three financial years.

Lenders examine the company accounts to understand the business’s profitability and whether your declared salary and dividends are sustainable. If you retain significant profits in the company rather than drawing them, some lenders will factor in retained earnings, which can boost your borrowing capacity.

If you’re a contractor, some lenders will want evidence of ongoing or future work. This is particularly important for lenders who assess income based on your contract rate rather than historic accounts.

Provide a copy of your current contract showing the day rate, start and end dates, and the client’s name. If your contract is due for renewal, a letter of intent or history of previous renewals can also help. Most lenders want to see at least six months remaining on your contract, or a pattern of continuous renewals.