SELF EMPLOYED MORTGAGES
Mortgages Made Simple For The Self Employed
Being self employed shouldn’t make getting a mortgage any harder, but in practice it often does. Not every lender understands self employed income the same way, and that’s exactly where we come in. We know which lenders are genuinely flexible with the self employed, and we’ll help you put together an application that gives you the best chance of approval.
Think carefully before securing other debts against your home. The overall cost of repayment of other debts might be more when added to your mortgage.
Your home might be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Why self employed mortgages can be trickier
Traditional mortgage lenders are built around predictable, provable income, a fixed salary landing in your account every month. Self employed income doesn’t always look like that, even when it’s perfectly healthy. Profits can vary year to year, and some lenders are simply more cautious, or less experienced, when it comes to assessing that kind of income.
That doesn’t mean it’s harder to get approved everywhere. It just means the lender you approach matters more than it does for an employed applicant. Some lenders will happily work with one year’s accounts, others insist on two or three, and criteria genuinely varies more than people expect.
What documents will you need?
- SA302s and tax year overviews, usually the last two to three years
- Finalised accounts, if you’re a limited company director
- Business bank statements
- Your current contract and day or weekly rate, if you’re a contractor
- An accountant’s reference or certificate, for some lenders
- Proof of any dividends or retained profits, depending on how you’re paid
Exactly what’s needed depends on how you’re structured, sole trader, partnership, contractor, or limited company director, and how long you’ve been trading. We’ll tell you upfront what you’ll need to gather before you apply, so there are no surprises partway through.
How lenders assess self employed applicants
Sole traders and partnerships are usually assessed on net profit. Limited company directors are often assessed on salary plus dividends, though some lenders will also consider retained profit within the business, which can make a real difference to how much you can borrow. Contractors are often assessed differently again, some lenders will calculate your annual income from your day or weekly contract rate multiplied out across the working year, rather than relying on your accounts in the same way.
Some specialist lenders also use human underwriters to assess self employed applications, rather than relying purely on automated credit scoring. That can genuinely help in borderline cases, where the numbers on paper don’t tell the full story of a healthy business.
This is one of the areas where using a broker matters most, since not every lender calculates this the same way, and picking the wrong one can mean being offered far less than you could actually get elsewhere.
How we help
We’re whole-of-market advisors, so we’re not limited to the handful of lenders that show up first on a comparison site. We know which lenders are genuinely comfortable with self employed applicants, which ones need only one year of accounts, which ones assess contractors on their contract rate rather than accounts, and which ones use human underwriting for borderline cases. We’ll match you with a lender suited to your specific situation, not just apply to whoever’s cheapest and hope for the best.
Self employed mortgage questions we get asked a lot
How do I get a mortgage when I'm self employed?
Start by getting your accounts, tax returns, and business bank statements in order, then talk to a broker who knows which lenders suit your specific situation. We’ll help you put together an application that presents your income in the best possible light.
How much can I borrow if I'm self employed?
It depends on how your income is assessed, net profit for sole traders, salary plus dividends (and sometimes retained profit) for limited company directors, or contract rate for contractors. Rather than a generic multiple, we’ll work out a realistic figure based on your actual circumstances.
How many years of accounts do I need to get a mortgage?
Most lenders ask for two to three years, but some will consider just one, particularly if your income is strong and stable. We know which lenders fall into that second group.
Can I get a mortgage with only one year of accounts?
Yes, with the right lender. It’s more limited than having two or three years behind you, but it’s far from impossible, and we can point you toward lenders who are comfortable with newer businesses.
Does being a limited company director make it harder to get a mortgage?
Not necessarily, but it does change how your income is assessed. Some lenders only look at your salary and dividends, while others will also consider profit retained in the business, which can significantly change how much you’re able to borrow.
I'm a contractor. Will lenders use my day rate or my accounts?
It depends on the lender. Some will calculate your income from your current contract rate multiplied across a working year, which can work in your favour if you’ve only recently gone contracting. Others prefer to see accounts in the same way they would for a sole trader. We’ll point you toward whichever approach suits your situation best.