If you are self-employed most lenders will expect to see 2 years accounts to establish your trading history and experience.

You should supply your latest 2 years accounts and SA302s which are your self assessment tax calculations issued by HMRC and obtained by contacting you tax office. Some lenders may also request your Tax Overviews which confirm the tax paid within the accounting year and can be downloaded from the HMRC website.

The amount of mortgage available is usually based on the average of your last 2 years net taxable profit and not your turnover. If you are a director of a limited company, any dividends can also be included as part of your taxable income.

In the early years of being self-employed you may have substantial setting-up costs and additional expenses which could reduce the actual net taxable profit of the business and thus reduce your borrowing capacity.