Getting a mortgage while self employed and having been on mat leave

[Laugs]

Can anyone help?

I work freelance, part-time. I have three years accounts, which are not audited but have been declared to HMRC. I took 9 months maternity leave which spanned across two tax years.

I would like to know:

1. Will these accounts be seen as valid, if they have not been audited?
2. Will the mortgage lender take into account that for two out of the three years I only worked for part of the year, and adjust my potential earnings accordingly?

I'm not sure if it's relevant, but I don't earn much and my part in the mortgage would be as a small supplement to my husband's income - so it's not as if I am asking the mortgage lender to take a huge risk. My earnings would only add about £10K to the total mortgage offer.

Thanks!

It all rather depends on the lender but the general mood at the moment is that they are not giving the benefit of the doubt and are - for very understandable reasons - erring on the side of caution. Your declared taxable income would almost certainly count but adjusting for you having worked part of a year, less likely.

Thanks Chil1234. That's good to know that my declared income should count. I understand the caution and had just been considering what my DH earns, but it'd be really useful to have an extra 10K to play with.

Sorry if I'm being stupid, but would they need to see my actual accounts or would the final figure as declared to HMRC be enough? All I have is a very basic Excel spreadsheet.

I think it would be advisable to take along as much supporting documentation as you have available. They may not need all of it and, worst case scenario, they may not count self-employed income all together, but the more open you are about your circumstances, the better.

I notice you're talking about 'the mortgage lender' which suggests that you have just one that you're making the application to? Mortgage brokers are often a good option and will shop around to find you the best deals. They will also have details of lenders prepared to deal with the self-employed.