How do I provide proof of income?

During the mortgage application process, you will be asked to provide proof of your income. The evidence is usually required in the following ways:

If you're employed

You will be asked to supply official evidence of your salary by payslips and/or your P60. The mortgage lender may also contact your employer for verification that you work there. Earnings like commission and bonuses that are not guaranteed, cannot usually be counted as part of your take-home wages.

If you're self-employed

Historically it was quite difficult for self-employed people to get a mortgage. It is a lot easier now and there are lots of competitive deals out there. To prove your income you need to provide three years audited accounts. If you haven't been in business for as long as three years then you will need a certified accountant to produce a letter confirming your income.

Alternatively, you can apply for a "Self-Certified" mortgage - this is where you state what your income is, and the lender accepts your word. However, Self-Certified mortgages do attract a higher rate of interest.