Mortgages for the self-employed

Being self-employed doesn't make you a worse borrower, but lenders want more evidence that your income is reliable.

Last checked 13 September 2026.

Eight sections. Each anchored to a first-party source, checked 13 September 2026.

1. The problem is not self-employment, it's the affordability engine

Two people earning the same total each year can be offered very different mortgage amounts if one is on PAYE and the other is self-employed. The FCA rules require lenders to assess affordability responsibly, taking account of your income and committed spending (MCOB 11.6), and each lender chooses how to read self-employed income within that. Some annualise the most recent year; some average two or three; some count only what shows on a tax calculation; some also count retained profit for company directors.

2. One year of accounts

A minority of lenders will consider you with only one year of trading, if the accounts are strong and the sector is stable. The pool is smaller and rates are usually higher, so a broker who knows which lenders currently do one-year cases saves time. Contractor income from the last twelve months on a good day rate is often more workable than a genuinely new business.

3. Contractors and day rates

Some lenders will calculate borrowing directly from the day rate — typically day rate × 5 × 46 or 48 weeks. That often gives a bigger figure than the taxable income shown on your SA302 for the same year, because it ignores holidays, company overheads and dividends taken versus retained. Which method a lender uses is a policy choice, not something you can argue on the day, so ask before you apply.

4. Limited company directors

Three approaches are in use. Salary plus dividends is the most common. A few lenders will add retained profit, which substantially raises what a growing company director can borrow. A minority use net profit before dividends. For directors with 25% or more shareholding, HMRC treats you as self-employed for mortgage income purposes even if you also draw a payroll salary.

5. Mixed and multiple income

Employment plus a self-employed side income, two directorships, contractor plus salaried spouse: every combination is possible, but the lender pool narrows as the mix gets more complex. Present the numbers clearly at the start — a one-page summary of income sources and years — and make sure it matches your tax paperwork exactly.

6. The tax trap

Every pound you legitimately reduce your declared income by, through allowable expenses or pension contributions, cuts your tax bill and cuts what you can borrow. Lenders look back two to three years, so a decision to minimise tax now can hurt a mortgage application in a couple of years. If a house move is on the horizon, discuss the trade-off with your accountant before you file, not after.

7. Evidence checklist

• Two to three years of SA302 tax calculations and matching tax year overviews from HMRC (accessible through your Personal Tax Account on GOV.UK).
• Signed accounts prepared by a qualified accountant, especially for limited company directors.
• A recent accountant's certificate confirming your income (some lenders ask for this in a specific format).
• Three to six months of business and personal bank statements.
• Your latest self-assessment tax return (SA100).

8. Remortgaging while self-employed

A product transfer with your existing lender doesn't usually require a fresh income check, so if the numbers still make sense, staying put is often fastest. Switching to a new lender restarts the affordability process from scratch, but can save materially more over the fixed period — use the repayment calculator to see the difference.

Brokers whose website mentions self-employed mortgages

554 firms in our directory mention self-employed mortgages on their own website. That's what they say about themselves, not an assessment by us, so check that a firm handles your situation and look it up on the FCA Register before taking advice.

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• Mortgages with bad credit
• First-time buyer mortgages
• Buy-to-let mortgages
• Remortgage guide
• Contractor mortgages
• Agreement in Principle
• Credit score and mortgages
• Mortgage broker fees
• Divorce and mortgages
• Gifted deposit
• Should you use the estate agent's recommended broker?
• Documents for a mortgage application
• What happens at a mortgage fact-find
• New build mortgages

General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.