Self-Employed Mortgages in the UK
Self-employed mortgage applications often need more income evidence than employed applications. The right route depends on how your income is structured and how lenders assess it.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This page is for sole traders, contractors, CIS workers and limited company directors estimating UK mortgage affordability.
Quick summary
- Many lenders ask for two years of income evidence, though criteria vary.
- Sole traders, contractors and company directors can be assessed differently.
- Income trends, retained profits and recent trading changes can affect borrowing estimates.
- Calculator results are estimates only and cannot reflect every lender rule.
What lenders may look at
- Years trading
- Net profit or salary and dividends
- Company profit trend
- Contract history
- Personal credit history
Documents you may need
- Tax calculations and tax year overviews
- Accountant-prepared accounts if available
- Recent bank statements
- Current contract if contracting
- ID and proof of 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 recent trading years.
- Use realistic income figures rather than turnover when estimating borrowing.
- Consider whether a lender may assess salary, dividends, net profit or retained profit.
Common issues
- Using tax-efficient income figures that reduce mortgage affordability.
- A recent fall in income that changes the lender view.
- Mixing personal and business spending in bank statements.
- Assuming all lenders assess company directors in the same way.
Frequently asked questions
Can I get a mortgage with one year of accounts? +
Some lenders may consider one year of trading, but the lender pool is narrower and criteria vary. It is not guaranteed.
Do lenders use profit or turnover? +
Most lenders focus on taxable income or profit rather than turnover, but the exact approach depends on the business structure and lender.
Will retained company profit count? +
Some lenders may consider retained profit for company directors. Others use salary and dividends only.
Does being self-employed mean I need a larger deposit? +
Not automatically. Deposit requirements depend on lender criteria, credit profile, property and affordability.
Compare related UK mortgage situations
Calculator-led mortgage planning
UK Mortgage Calculators is centred on practical estimation tools. The pages help you model cautious scenarios before you decide whether to request a broker or adviser callback.