31 May 2017
If any of the following applies, the applicant(s) must be disclosed as self-employed:
- Where the applicant(s) has a shareholding of 20% or more;
- If joint applicant(s) own 20% or more between them, treat both applicants as self-employed (both applicants need to hold a % share);
- A sub-contractor who derives income from contract work;
- An applicant(s) has a partnership interest in a business i.e. income is not PAYE, irrespective of the percentage shareholding;
- An applicant(s) owns a franchise;
- An applicant(s) employed by a Private Limited Company (LTD) who receives a salary (PAYE) and dividends as part of their remuneration package;
- An applicant(s) who is in a Limited Liability Partnership (LLP) and receives a share of Net Profit.
The applicant(s) must be self-employed for a minimum of 3 years.
If an applicant has been self-employed over 2 years but not 3 the Society may accept 2 years’ self-employment plus one year’s projected income. A referral should be made to your Business Development Manager where the applicant(s) have been self-employed less than 3 years.
3 years income documentation must be provided for all case where LTV is over 75%.
Cases where LTV is under 75% may proceed with 2 years income documentation being provided.