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FOR INTERMEDIARY AND PROFESSIONAL ADVISORS ONLY. NOT FOR CONSUMER USE.

Coventry intermediaries logo0800 121 7788 Monday to Friday 9am - 6pm. Closed on bank holidays.

A self-employed lending policy that's flexible and true to life

Self-employed workers currently make up 15% of the UK workforce* and the number is set to grow. With more and more people choosing to work flexibly - we're here to support your self-employed clients.

We're experienced in lending to directors of limited companies, sole traders and daily rate contractors, so we understand the challenges of being self-employed. It’s why we've developed a flexible and true to life approach to lending.

We also have a versatile range of products, some with no ERCs, and others designed to make the most of earnings that can fluctuate.

* ONS and Labour Force Survey data

Our self-employed criteria – the important bits

To see our criteria in full, take a look at our residential lending policy.

Directors with ≥20% shares

We take into account their share of net profit plus salary, and not dividends.

Income – calculated using net profit & salary

Net profit after corporation tax

Trading – minimum 2 years

And 2 years' proof of income

Latest year's figures determines income

Unless the figures vary significantly


  • We need to see an accountant's certificate covering the most recent two-year accounting period.
  • The latest financial year on documentation should be no older than 12 months (or 15 months with supporting bank statements).
Accountants' certificates – find out more >

Daily rate contractors

We use their day rate for affordability purposes, as long as they meet the following criteria:

Income – minimum £50k gross

Calculated using 'day* rate x 5 days x 41 weeks'

Experience – minimum 12 months

Contracting in the same line of work

Current contract – minimum 6 months remaining

Or 24 months' continuous employment in the same line of work


* ‘Day rate’ includes hourly/daily paid, if your client is weekly paid they will calculated at weekly rate x 41 weeks.

  • If your client doesn’t meet these requirements, we could still lend to them on a self-employed basis – they'll need to meet our policy for sole traders or directors with 20% or more shares.

Sole traders

Including Limited Liability Partnerships and sub-contractors. We take into account their share of the latest year’s net profit.

Income – calculated using share of net profit

Experience – 2 years as business owner

And 2 years' proof of income

Latest year's figures determines income

Unless the figures vary significantly


  • We need two years of HMRC tax-year calculations, plus Tax Overviews or latest SA302s.
  • The latest financial year on documentation should be no older than 12 months (or 18 months backed up by three months’ bank statements).

Contractors

Including zero hours contracts. There must be a consistent level of earnings over the last 12 months.

Income – consistent for 12 months

Verified by a copy of the contract, latest payslip and P60

Experience – minimum 12 months

Continuous employment in contracting

Current contract – minimum 6 months remaining

Or 24 months' continuous employment in the same line of work


  • We need an employer's reference with full details of the current contract.

Directors with <20% shares

We treat directors of limited companies with shares of less than 20% shares as employed applicants.

Income – latest payslip and P60

3 months' payslips if no P60

Experience – minimum 12 months

With no more than a 3-month break in employment

Dividends – 50% of the last 2 years' average income

Verified by the company accountant


  • We verify their income using their latest P60 and last month’s payslip.
  • We also take into account 50% of the average of the last 2 years' dividends received as income, as long as we have a reference from the company accountant.