Mortgages for
Self-Employed Borrowers

Is it harder to get a mortgage when you’re self-employed?

No, getting a mortgage shouldn't be harder if you're self-employed. However, the mortgage application process is slightly different for self-employed applicants. 

The main differences are how lenders assess your income and the documents you need. Instead of payslips, lenders will be looking at your business accounts and tax returns. 

What documents will I need to provide? 

Typically, you’ll need to provide your lender with: 

• Last 2 years’ SA302s
• Last 2 years’ tax overviews
• Last 2 years’ business accounts
• Last 3 months' business bank statements 

How your business is structured (for example, whether it’s a Limited Company, you’re a sole trader or a contractor, etc) will impact the documents you’ll need to provide. Our brokers can help you gather and review these before we submit to your lender. 

Can I get a mortgage if I’ve only been self-employed for one year? 

While some lenders want to see at least two years of trading when you apply for a mortgage, some specialist lenders may consider your application with just one year of accounts. Strong profits or previous experience in the same field can help support your application. 

How much can I borrow? 

Being self-employed doesn’t limit you on how much you can borrow. 

Typically, you can borrow up to 4.5 times your annual income when applying for a home mortgage. Try our free calculator here for a better idea of how much a lender would be willing to lend you. 

Can my retained profits or dividends count as income?

Many lenders accept dividends and typically take an average from over the last two years of your accounts. There are some specialist lenders that can accept retained profits, but not all. Consequently, if you’re hoping to rely on retained profits to boost how much you can borrow, it’s important to speak to our team so we can find you the right lender.