The difference is that a lender will assess your income on an alternative basis.

Unlike an employed applicant, your income might be less stable or might fluctuate considerably. Therefore, a lender will usually work on an average of your earnings over the last two or three years.

This calculation is different with every lender; some lenders are less flexible and might cap the maximum they can lend on a strict basis.

They'll also include different aspects of your pay - so the average annual income you make as a self-employed business might include different income streams. Some lenders will include 100% of all income, and others will be selective about which earnings they consider applicable for a mortgage income assessment.

However, working with a whole-of-market broker such as Revolution Finance ensures that you only apply to lenders who offer excellent mortgage rates.

Every lender works differently, but they will have similarities in the factors they consider:

• Income - all mortgage providers will need to know how much you earn. Some will require a minimum of two or three years worth of accounts, whereas more niche lenders can consider self-employed applicants who have been in business for less than a year.
• Deposit - the size of the deposit is usually similar to a typical employment mortgage. The standard is around 10%. If your application is considered a higher risk, such as trading for a shorter period, a lender might ask for a higher deposit. There are also options such as using Help to Buy if you have a smaller deposit.
• Credit rating - lenders will look at your credit score and/or your credit history to evaluate your application. If you have bad credit, you will undoubtedly have a lower number of lenders to apply to. On the plus side, working with a specialist broker means knowing who those lenders are and working with providers who offer niche bad credit mortgages for self-employed people.
• Age restrictions - some lenders have a maximum applicant age they will consider. Usually, this is around age 75, and sometimes up to age 85. Other lenders have no age limit and are more concerned with affordability.

Typically, lenders will be most comfortable seeing two or three years worth of accounts to demonstrate your trading history.

However, some of the lenders that Revolution Brokers work with can consider an application after only nine to twelve months of trading.

In that case, they will seek evidence about the security of the business and look at contracts and other factors to ensure the income is sustainable.

Unfortunately not - reputable mortgage lenders have strict criteria for demonstrating ethical lending. Therefore, they cannot offer to lend to a self-employed person who cannot prove how much they earn.

In most cases, you will need to show your lender accounts for at least the last nine to twelve months.

The longer you have been trading and the more trading history you can provide, the more lenders you have to choose between and the better rates you will get.

If you cannot provide sets of accounts, you might be able to apply for a second charge mortgage. This option only applies to applicants who have a mortgaged property and wish to take out a second mortgage to release the equity owned.

Contact the Revolution team if you struggle to demonstrate your income as a self-employed person and find it challenging to secure a mortgage.

You can, although with a bad credit history, it is less straightforward. However, by working with an experienced broker, you receive advice about which lenders are worth applying to, which cannot accept bad credit applications, and where you will be offered the best rates.

Revolution works with several bad credit specialist lenders, who have a more flexible approach to assessing self-employed applications.

Usually, the decision is based on other factors such as:

• Your age
• How severe your credit issues are
• Why and when the problems occurred

It can be possible, in some circumstances, to secure a self-employed mortgage even if you have had several adverse credit issues.

Provided some time has passed since more severe issues - such as bankruptcies and repossessions - and you can demonstrate good financial responsibility since a broker can negotiate a competitive deal on your behalf.

We also support clients with reducing their risk profile and mitigating issues presented by their credit history. For example, if you can increase your deposit value and produce at least three years worth of accounts, you have more options when it comes to self-employed bad credit mortgages.

It all depends on how long you have been trading for and how closely you fit the other lending criteria.

Usually, it would be best if you waited until you have been trading for at least nine to twelve months. In that case, you'll still have fewer lenders to choose between - if you have been trading for two to three years, you will often receive much better rates.

If you are newly self-employed but have a previous history of work in the same industry, this can help strengthen your application.

Most lenders will look at your average earnings and use this to calculate the maximum they can offer to lend.

Mainstream providers will usually ask for three years worth of accounts to calculate this average. Other more flexible lenders will look at the last two years, and fewer niche providers will look at the last nine to twelve months of trading.