If you run your own business and can't show mainstream accounts for the last three years, you may encounter problems getting a conventional mortgage. Most lenders ask self-employed applicants for audited accounts or a letter from their accountant. The loan is based on this proved income. Equally, some employed borrowers may also choose a self certification mortgage (also known as non status) because when lenders decide whether to lend or not, the affordability calculations may not always take into account extra income from annual bonuses or commission. Some self-cert lenders will consider employed borrowers for this reason.

However, even if you maintain full accounts, your accountant is likely to minimise the amount you declare as income for tax purposes. So when a lender looks at your accounts, its assessment of how much you can borrow may be based on a lower income that doesn't reflect your ability to pay.

But all is not lost. Many specialist lenders, and some mainstream lenders, offer self certification mortgages where you state your level of income without having to provide any accounts. There are two levels of self-certification; some lenders will accept a letter from you declaring your income; some require a letter from your accountant stating that your business is solvent.

There are a handful of lenders that will offer you a self-certification mortgage if you have a poor credit history, but expect to pay a higher level of interest on the loan.

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