Self-employed and getting a mortgage: what actually matters
The short answer
There's no special "self-employed mortgage" - same products, same rates. What changes is proving income: most lenders want two years of accounts or tax calculations, and how they read your numbers varies enormously. One lender averages two years, another uses the latest, one counts retained company profits, most don't. That variation is why brokers earn their fee here more than anywhere else.
What lenders actually look at
Sole traders: net profit from your SA302 tax calculations plus tax year overviews - most want two years, a few accept one with strong other evidence.
Limited company directors: salary plus dividends is the standard reading. The expensive quirk: money left in the company as retained profit is invisible to most lenders - but a meaningful minority will count your share of net profit instead, which can transform what a tax-efficient director can borrow.
Contractors: many lenders annualise the day rate (rate × 5 × 46-48 weeks) rather than reading accounts at all - often the strongest basis of the three, if you apply to the lenders who use it.
| Your situation | Cautious lender | Right-fit lender |
|---|---|---|
| Profit dipped last year | Averages the two years | Uses latest year with explanation |
| £60k retained in the company | Ignored | Counted via share of net profit |
| £400/day contractor, 1 year contracting | Declined - wants 2 years' accounts | Annualises the day rate |
| One strong year post-startup | Wants year two | Accepts 1 year plus pipeline evidence |
Preparing a file that sails through
Two years of accounts or SA302s with tax year overviews, finalised promptly after year-end. Clean separation of business and personal banking. Deposit evidence with a paper trail. An agreement in principle from a lender chosen for your structure - not whichever bank you walked into - before you fall for a house. And realistic pipeline evidence (contracts, bookings) if your latest year is the story you need a lender to believe.
Self-employed and buying?
Verified whole-of-market brokers who place self-employed cases weekly - free consultation on which lenders fit your accounts, before any credit checks.
Compare mortgage brokersCommon questions
Can I get a mortgage with one year's accounts?
Harder, not impossible: a handful of lenders accept one strong year, especially with a track record in the same field as an employee first. Expect a fuller deposit and a broker-led application.
Do I pay higher rates for being self-employed?
No - products and rates are the same shelves. The difference is access: which lenders will read your income generously enough to offer at all. Placement, not pricing, is the game.
Does IR35 or an umbrella company change things?
It changes which lenders fit. Umbrella payslips read almost like employment to some lenders; day-rate treatment suits others. Tell your broker the exact structure - the difference between similar-looking setups moves offers by tens of thousands.
What deposit do I need?
The same bands as everyone: from 5% in principle, with rates improving at 10, 15 and 25%. A bigger deposit also buys underwriting goodwill on a case that needs any judgement calls - it's the lever you control most directly.
Sources and further reading