Self-Employed Mortgages in the UK
Self-employed mortgage applications take a bit more paperwork than employed ones — but the right lender will assess your income fairly. The challenge is matching your trading style to a lender that interprets it generously.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick summary
- High-street lenders typically want 2 years of accounts or SA302s.
- A handful of specialist lenders accept 1 year if profits are strong.
- Ltd directors are often better off with lenders that count salary + retained profit, not just salary + dividends.
- Contractors can be assessed on day-rate × 5 × 46–48 weeks at specialist lenders.
- A whole-of-market broker can often unlock 30–60% more borrowing in complex cases.
What lenders may look at
- Years trading
- Trend of net profit
- Retained profits inside Ltd company
- Tax return vs accountant-prepared accounts
- Personal credit history
Documents you may need
- Last 2 years SA302 + tax year overview
- 2 years certified accounts (Ltd)
- Dividend vouchers (if Ltd)
- 3 months personal + business bank statements
- Accountant’s reference (some lenders)
- ID + proof of address + deposit
Common issues
- Reducing income on tax return for tax efficiency — limits the income lenders will use.
- Mixing personal and business spending — flagged by lenders reviewing bank statements.
- Director salary set very low with high dividends — limits high-street options.
- Last year significantly lower than the prior year — many lenders use the lower of the two.
Frequently asked questions
Can I get a mortgage with 1 year of accounts? +
Yes, but the lender pool is smaller. Halifax, Kensington and several specialist lenders accept 1 year if the profit trend is strong.
Will my limited company retained profit count? +
At many specialist lenders, yes — they use salary + share of retained profit instead of salary + dividends, which typically boosts borrowing.
Do umbrella contractors count as self-employed? +
Usually no — most lenders treat umbrella PAYE contractors as employed and use payslips and a contract.
What about CIS subcontractors? +
Some lenders use gross CIS day-rate × 5 days × 46 weeks; others fall back to net profit on SA302. A specialist CIS broker is worth speaking to.
Is a deposit larger because I’m self-employed? +
Not directly, but lower LTV (15–25%+) unlocks more lender choice, which matters more for self-employed cases.
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