The Intermediary – July 2026 - Flipbook - Page 84
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C AS E ON E
Self-employed applicant
had been operating for less than a year, we could
accept the transition from sole trader to limited
company as continuous trading.
Additionally, we would be able to disregard the
van finance repayments if these were due to be
finished within the next six months.
with recent incorporation
GEN H
self-employed applicant hopes to
purchase a home worth £390,000,
boasting a 15% deposit. They previously
operated as a sole trader for six years before
incorporating their business 14 months ago.
Income under the limited company structure is
split between salary and dividends, with overall
earnings broadly unchanged from prior years.
The applicant works in the construction sector
and has several long-term contracts in place. They
also have a van finance agreement with monthly
repayments of £410 and limited savings remaining
after completion.
A
This case would fit well at Gen H provided
the limited company has filed accounts with
Companies House.
BUCKINGHAMSHIRE BS
UNITED TRUST BANK
Buckinghamshire Building Society can consider
this scenario. We would require one year of
finalised accounts for the company following
incorporation, alongside one year of SA302s from
when the applicant operated as a sole trader.
Income will be assessed using an average over
the two years, based on salary and dividends.
Vehicle finance can be disregarded if it can
be evidenced that it is paid for by the business;
otherwise, it will need to be included as a
personal commitment.
Subject to income calculations and suitable credit
score this is an application UTB can consider.
Natural transition from sole trader to limited
company is not a problem providing the source
of earnings remains the same. This can be
confirmed by the applicant’s accountant using our
Accountants Certificate document.
The van finance repayments of £410 can be
discounted from income calculations if it can be
evidenced this is a business expense.
We regularly accept self-employed applicants
as long as they have at least one years’ trading
history, which should be reflected in the last year’s
SA302.
We can use salary and dividends as income
sources in our affordability calculations. Other
finance agreements will be factored into
affordability assessments.
WEST ONE LOANS
HARPENDEN BS
SUFFOLK BS
We can accept self-employed applicants with just
one year’s trading. But even if the limited company
The recent incorporation is fine for us, although
we’d look to make sure that the income
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The Intermediary | July 2026
