Mortgages for the Self-Employed
Being your own boss can make getting a mortgage feel more complicated — but it doesn't have to be.
Whether you're a sole trader, company director, or contractor, I can help you understand how different lenders assess self-employed income and explore what options might be available to you.
Let's Have a Chat"Being self-employed, I was worried about getting a mortgage, but Rob made it seem effortless. He knew exactly which lenders to approach and guided me through every step. I couldn't be happier with the outcome."
Sarah Jenkins
Why It Can Feel More Complicated
Some high street banks find self-employed applications more challenging because your income isn't as straightforward as a monthly payslip. They may focus on net profit figures that don't always reflect your true earning capacity.
The good news: Some lenders take a more flexible approach to self-employed income. For example, certain lenders may consider retained profit for directors, accept shorter trading histories, or have specific criteria for contractors. Every situation is different, and I can help you explore what might work for you.
How Lenders May Assess Your Income
Different lenders have different approaches. Here's a general overview — though specific criteria vary:
Sole Traders
Lenders typically look at your 'Net Profit' figure from your tax calculations (SA302s). Most average the last 2 years, though some may use the latest year if profits are rising.
Limited Company Directors
Many lenders look at Salary + Dividends. However, some lenders may consider Salary + Net Profit (before tax), which can sometimes allow for higher borrowing — though this depends on your individual circumstances.
Contractors
If you're on a day rate, some lenders may annualise this (Day Rate x 5 days x 46 weeks) rather than looking at your tax returns. This approach can sometimes be more favourable, depending on your contract terms.
Documents You'll Typically Need
To evidence your income, lenders usually ask for some or all of the following:
- Last 2 years' SA302s (Tax Calculations)
- Last 2 years' Tax Year Overviews
- Last 3 months' business bank statements
- Last 3 months' personal bank statements
- For Directors: Last 2 years' full company accounts
Requirements vary by lender. I can advise on what's likely to be needed for your specific situation.
Common Questions
Rob Davies
Alsager, Cheshire
Have Questions?
I understand how self-employed income works and can help you navigate the process. Let's have a chat about your situation and explore what options might be available.
Let's Have a ChatYour home may be repossessed if you do not keep up repayments on your mortgage.
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