Self-Employed Mortgages in the UK

This page is for sole traders, contractors, CIS workers and limited company directors comparing UK mortgage routes.

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

Practical next steps

• Gather tax calculations, tax year overviews, accounts and bank statements before applying.
• Check whether income has risen, fallen or become less regular over the latest two trading years.
• Separate personal and business spending where possible so bank statements are easier to explain.
• Review whether salary, dividends, net profit or retained profit is the most relevant lender view.

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.