Mortgages for the Self-Employed
Lenders do not all read self-employed income the same way. Some want two full years of accounts, some will work from one. Some look only at salary and dividends, others will take your share of company profit into account. Knowing which lender suits your situation is where a specialist broker earns their keep.
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Sole Traders & PartnershipsAdvice built around your net profit and tax returns, including what to do if your income has risen or dipped in the last year.
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Limited Company Directors
Access to lenders who can consider retained profit as well as salary and dividends, so a tax efficient set of accounts does not hold you back.
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Contractors & Freelancers
Day rate and fixed term contract income assessed by lenders who understand contracting, not treated as an afterthought.
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One or Two Years’ Accounts
Recently gone self-employed? We know which lenders will consider a shorter trading history and what they will want to see.
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Support Through the Entire Process
From gathering documents with your accountant to completion, your adviser and case manager handle the lender for you.
How Do Lenders Assess Self-Employed Income?
It depends on how you are set up. As a guide, this is what most lenders look at and the paperwork you should expect to provide. Criteria vary between lenders and change over time, so treat this as a starting point.
| If you are a | Income lenders usually use | Documents you will typically need |
|---|---|---|
| Sole trader or partner | Your net profit (or your share of it), usually averaged over the last two years. If the latest year is lower, lenders tend to use that figure. | Two years of SA302 tax calculations and tax year overviews from HMRC, plus accounts if you have them prepared. |
| Limited company director | Salary plus dividends with most lenders. Some will use salary plus your share of net profit instead, which helps if you leave money in the business. | Two years of company accounts, SA302s and tax year overviews. An accountant’s reference may also be requested. |
| Contractor | Some lenders will annualise your day rate from your current contract rather than relying on your accounts. | Your current contract, evidence of your contracting history or previous contracts, and recent bank statements. |
| Newly self-employed | A smaller group of lenders will consider one full year of figures, particularly if you worked in the same field before going out on your own. | Your first year’s accounts or SA302, proof of previous experience in the same line of work, and recent business bank statements. |
Every applicant also needs photo ID, proof of address, proof of deposit and recent personal bank statements. Our step-by-step guide to applying for a mortgage has the full checklist.
Common Hurdles for Self-Employed Borrowers
Most self-employed applications that stall do so for one of a handful of reasons. None of them rule you out. They simply narrow down which lenders are the right fit.
- Income that moves around – A strong year followed by a weaker one, or the reverse.
- Profit kept in the company – Low salary and dividends on paper, healthy business underneath.
- A short trading history – Less than two full years of accounts.
- Gaps between contracts – Normal for contractors, questioned by some lenders.
- Past credit problems – Missed payments or defaults alongside self-employed income.
Self-Employed Mortgage FAQs
Straight answers to the questions we hear most from sole traders, contractors and company directors.
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Can I get a mortgage if I am self-employed?
Yes. Self-employed borrowers have access to the same mortgages as employed applicants. There is no separate product called a self-employed mortgage. The difference is in how you prove your income, and in choosing a lender whose criteria suit the way you are paid. -
How many years of accounts do I need?
Most lenders ask for two years. Some will accept one full year, especially where you have a track record in the same industry. -
How much can I borrow if I am self-employed?
Lenders apply the same income multiples and affordability checks as they do for employed applicants. What changes is the income figure they start from, which is why the choice of lender matters so much. -
Do I need a bigger deposit?
Not usually. Deposit requirements are generally the same as for employed borrowers. A larger deposit can widen your options if you have a short trading history or past credit issues. -
I am a director and keep profit in my company. Does that count?
With the right lender, yes. Some will assess salary plus your share of net profit, not only the salary and dividends you have drawn. -
Why use a broker for a self-employed mortgage?
Because criteria differ so widely. A broker knows which lenders suit your set-up before you apply, which saves declined applications and unnecessary credit searches.
Mortgage Reviews
“Our adviser and administrator at Visionary Finance have been steward advisers throughout the lending acquisition process. The products are dictated by the lenders and the professional support from VF is critical to ensure an objective journey. Due diligence is tedious with international financing clients and attention to detail is important to manage, patiently and professionally.”
“In a turbulent year, our adviser’s professionalism, level of communication, care and sensitivity, and sheer tenacity, helped us secure a mortgage – even as we navigated the challenges of purchasing a UK apartment across three countries and during a global pandemic. When things go smoothly, that’s great, but it’s when things go wrong that you need a good person and a professional on your side. We cannot thank him and the team enough.”
Ali Cipriano
“I have been very impressed by the supportive service given to me by the team at Visionary Finance. My mortgage adviser didn’t tire even though our application for a mortgage was a challenge as one of us is a non-resident buyer which adds complication to the arrangement process. There were a number of rejections by some lenders but Visionary Finance kept going until success was reached. Thanks for your great efforts.”
Paul German
“My last 2 brokers were unable to sort out my mortgage, I felt helpless until I was introduced to Visionary Finance by the developer. I’m really impressed by their service, they have handled my case in a professional and efficient manner. They are always responsive and explained every step to me clearly. They are really committed and hardworking to help me with securing a mortgage offer, definitely recommended their great service.”
Useful Mortgage Resources
Explore our helpful guides and resources to learn more about the mortgage process, compare different products, and make confident, informed decisions when buying or investing in property.
