Prime mortgages from Atom

If an applicant has more than a 20% shareholding in the business they work for, we’ll treat them as self-employed, but if their shareholding is 20% or under, we’ll class them as employed.

Applicants who own a franchise or have a partnership interest in a business will be assessed as self-employed, as will sub-contractors who derive income from more than one contract. In all cases, we might seek references from their accountants.

We’d normally expect applicants to have been self-employed for a minimum of two years (and preferably three years) and for the business to have been profitable throughout that time.

Income for affordability is taken as follows:

• For self-employed customers, multiple year (minimum two years, preferably three years) pre tax net profit figures will be captured on the intermediary portal. The system will determine the average net profit for the applicant by taking a simple average.

The maximum LTV for self-employed applicants is 90% for Prime products and 85% for Near Prime products.

Construction Industry Scheme (CIS) Contractors will be treated as self-employed. Therefore, two years’ accounts or two years’ HMRC self-assessments (SA302s or Online Tax Calculations) will have to be provided to evidence income.

Limited Liability Partnerships (LLP) - Income from a partner within an LLP is acceptable and can be evidenced by providing two years company accounts. Where the appointment is too recent to be shown in the accounts, income can be validated by a letter from the managing partner confirming the applicant’s partnership share and income for the most recent financial period.

Employment type	Income bracket	LTV	Loan-to-income (LTI) ratio
Employed	Up to 60k	Any	4.49
Employed	Over 60k	Up to 90%	5.5
Employed	Over 60k	Above 90%	4.49
Self-employed	Over 75k (single income) Over 100k (joint income)	Up to 90%	5.5
Self-employed	Up to 75k (single income) Up to 100k (joint income)	Up to 90%	4.49

Income type	Percentage allowed	Minimum evidence required
Basic salary	100%	Latest months payslip
Area allowance	100%	Latest months payslip
Car allowance	100%	Latest months payslip
Shift allowance	100%	Latest months payslip
Housing allowance from employer	100%	Employment contract and three months payslips
Guaranteed overtime	70%	The lower of the average of the last three payslips annualised or the year to date on latest payslip Must show evidence of relevant split between salary, overtime, bonus and commission.
Guaranteed bonus/commission	70%	The lower of the average of the last three payslips annualised or the year to date on latest payslip Must show evidence of relevant split between salary, overtime, bonus and commission.
Sole Trader Net Profits	100% (average of last two year’s)	Two years SA302s or Tax calculations combined with Tax year overviews
Partnership Share of Net Profits	100% (average of last two year’s)	Two years company accounts or Accountant’s certificate*
Limited Company Director’s Share of Net Profit	100% (average of last two year’s)	Two years company accounts or Accountant’s certificate*
Limited Company Director’s Salary	100%	Two years company accounts or Accountant’s certificate*
Limited Liability Partnership Income (LLP)	100%	Two years company accounts. Where the appointment is too recent to be shown in the accounts, income can be validated by a letter from the managing partner confirming the applicant’s partnership share and income for the most recent financial period.
Pension/annuities	100%	An annual statement of pension/annuity on retirement or latest pension payslip Please note, we do not accept pension income as a sole income, the applicant must still be employed.
Personal Independence Payment, formally Disability allowance (for self)	100%	A letter from the DWP to confirm current entitlement
Second job salary	100% (where a minimum income 12 month record can be evidenced) or 70%	As per above requirements for primary job
Non-guaranteed overtime	70%	The lower of the average of the last three payslips annualised or the year to date on latest payslip Must show evidence of relevant split between salary, overtime, bonus and commission.
Non-guaranteed bonus/commission	70%	The lower of the average of the last three payslips annualised or the year to date on latest payslip Must show evidence of relevant split between salary, overtime, bonus and commission.
Investment income	70%	Most recent Savings/Investment Account statement, must be dated within the last 12 months
Rental income	70%	Last month’s bank statement showing rental income credits or current AST agreement. ARLA letters detailing potential rental income are not acceptable.
Maintenance	70%	A copy of maintenance agreement, CSA assessment or written private agreement evidenced by the latest three months bank statements
Working family tax credits	Not accepted	N/A
Child benefit and child tax credits	Not accepted	N/A
Other DWP benefits	Not accepted	N/A
Rent a room	Not accepted	N/A
Dividends	Not accepted	N/A

* Accountants certificate - if you want us to apply for an accountant’s certificate, rather than sending in accounts, then please email mortgageprocessing@atombank.co.uk with your request.