A guide to Self-employed

At Skipton Intermediaries, our straightforward and clear application process is designed to make sure you can submit business quick and easily - every time. We know you need answers quickly. That’s why we’ve put together this handy guide to our self-employed application process.

Why Choose Skipton?

  • We only need latest 2 years' full accountants/trading history
  • Access to all our Residential & Buy to Let products
  • For contractors, a combination of employed & self-employed income may be acceptable provided the customer has been in the same line of work for a minimum of 24 months
  • Residential borrowing available up to 90% LTV on houses

A real life approach to self-employed

  • We know not everyone fits the same mould. That’s why our underwriters have a flexible, common sense approach. If a case doesn’t quite fit our criteria they’ll discuss this with you.
  • You know your client better than we do - so if you have information that can help us underwrite the case, please include it with the application.
  • There may be times where a case doesn’t fit our criteria. If we need to decline an application we will call you and explain the reason why.
  • You can speak directly to an underwriter when you need to.
  • If an underwriter has a query with a case they’ll pick up the phone and discuss it with you.

Definition of self-employed

  • An individual who operates a business or profession as a sole trader, partner in a partnership, independent contractor or consultant.
  • An applicant will be considered as selfemployed if they have a shareholding of 20% or more in a business.
  • If your client receives any additional income from dividends - please see below (Limited Company) for the amount we can use when assessing affordability.

Key Criteria

Limited Company

  • We accept one of the following:
    • Latest 2 years’ finalised accounts
    • Latest 1 year accounts and 2 years’ SA302s (chartered or certified accountant)
  • Remuneration (basic salary) & dividends received, the net profit should be higher than the dividends received.
  • If salary/dividend income received in the latest year shows an increase, use an average of latest 2 years’.
  • Note: Additional information may be required where profit is increasing/decreasing year on year.
  • On the DIP, net profit and date of accounts for limited companies needs to be input in the net profit section. For limited companies, the remuneration should be entered into the Directors remuneration box and the dividends entered into the dividends received box. Neither of these should be duplicated in any other box.

Sole Traders

  • We accept one of the following:
    • Latest 2 years’ finalised accounts
    • Latest 1 year accounts and 2 years’ SA302s
    • Latest 2 years’ SA302s plus 4 months bank statements (acceptable for a sole trader that does not have an accountant or accountant is NOT chartered or certified)
  • If net profit over past 2 years’ has increased, use an average of the last 2 years’.
  • Note: Any personal financial commitments will be taken in to account.
  • On the DIP, net profit and date of accounts needs to be input in the net profit section. For sole traders the income used in affordability should be entered into the net profit box underneath.

Limited Liability Partnership

  • We accept one of the following:
    • Latest 2 years’ finalised accounts
    • Latest 1 year accounts and 1 years’ SA302s (chartered or certified accountant)
  • Note: If applicant is a partner with a large regional or national professional partnership we may accept an employment reference.
  • On the DIP, net profit and date of accounts for LLP needs to be input in the net profit section. For LLP the share of profit needs to be entered into the net profit box underneath.

Please note – This is only a guide. Check our online lending criteria for full details.

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