Being self-employed in West Sussex is a fantastic way to live. You’re your own boss. You call the shots. You’re building a business on your terms, whether you're a contractor in Crawley or a freelancer in Horsham.

It’s a dream come true.

Until you try to buy a house.

Suddenly, the bank that loved your deposits treats you like a high-risk gambler. The freedom you've earned feels like a penalty. You have the income, you've saved the deposit, but proving your earnings to a mortgage lender becomes a nightmare.

Here’s the harsh truth: Mortgage lenders don’t care how much money you think you make. They only care how much you can prove you make.

And if your accounts aren’t prepared and signed off by a qualified accountant, they might as well be written in crayon.

We see this scenario all the time. Ambitious, successful self-employed people who can’t get a mortgage because their finances aren't "lender-ready." This guide explains what banks really want to see and how to get your accounts in order before you start house-hunting.

Why Lenders Are So Tough on the Self-Employed

It’s not personal. It’s about risk.

A lender can look at a PAYE employee and see a simple, predictable payslip. They see a fixed salary, and the tax is already deducted. It’s safe.

When they look at a sole trader or limited company director, they see fluctuation. They see income that goes up and down, complex expenses, and a tax bill that’s only settled once a year.

Your job is to remove that risk and replace it with professional, undeniable proof. Your DIY spreadsheet, no matter how detailed, just won't cut it. They need an independent, qualified third party—your accountant—to prepare and certify your figures.

The Mortgage-Ready Checklist: What Lenders Actually Need

If you’re self-employed, you can’t just walk into a bank with your last three months of invoices. You need a specific set of documents, prepared professionally.

1. At Least 2-3 Years of Finalised Accounts

Lenders want to see a track record. A single great year could be a fluke; two or three consistent years show stability. These accounts must be professionally prepared by a qualified accountant (like an ACCA or AAT firm) and signed off.

2. Your SA302 Forms

This is the golden ticket. The SA302 (or "Tax Calculation") is the official HMRC document that summarises your total income and how much tax you owed. It’s generated after your Self-Assessment tax return has been filed. It’s HMRC’s version of your "payslip."

3. Your Tax Year Overviews

The SA302 shows what you owed. The Tax Year Overview proves that you paid it. A lender wants to see both. This document shows your full tax record for the year, including the payments you made.

A qualified accountant can pull both of these documents from the HMRC portal for you in minutes. This is the official proof of income that lenders trust.

The Two Big Traps for Self-Employed Buyers

Getting your accounts in order is vital, but you also need to avoid two very common pitfalls.

Trap 1: The "DIY Accounting" Mistake

You’ve been handling your own books to save money. You have a detailed spreadsheet of all your income and outgoings. That’s great for running your business, but it’s not enough for a lender. They have no way of knowing if those numbers are accurate, compliant, or complete.

Without a qualified accountant's signature, your accounts are just a claim. With one, they become a certified fact.

Trap 2: The "Creative Deductions" Backfire

This is the most painful mistake we see.

For years, you’ve tried to get your taxable profit as low as possible. You’ve claimed for every possible expense, worked from home costs, and squeezed every deduction. You saved £300 on your last tax bill. Congratulations.

The problem? You’ve also just told HMRC—and your mortgage lender—that you earn £3,000 less than you actually did.

Lenders base their mortgage offers on your taxable profit (your SA302 figure), not your total revenue. Being "creative" with your expenses to save a few hundred pounds in tax can reduce your provable income by thousands, potentially slashing tens of thousands of pounds off what the bank is willing to lend you.

How to Get "Mortgage-Ready"

If you're planning to buy a home in Crawley or anywhere in West Sussex in the next few years, the time to prepare is now, not when you've found your dream home.

1. Engage a Qualified Accountant: This is the first and most important step.
2. Plan Your Income Strategy: Talk to your accountant about your mortgage goals. You might decide to claim fewer expenses for the next two tax years to show a higher, more consistent profit.
3. Get Your Filings in Order: Ensure your accountant files your accounts and tax returns promptly, giving you a clean, up-to-date record.

Too many self-employed people find out too late that their finances aren’t in order. They’re then forced to accept terrible deals with high interest rates or, worse, wait another one or two years to build up the "proof" they need.

Your business is your biggest asset. A proactive accountant is the key to using that asset to build your personal wealth.

Thinking about buying a home? Let’s get you mortgage-ready. Get in touch for a friendly, no-obligation chat today.