Self Employed Mortgages

If you run your own business, are a sole trader, contractor, freelancer, or director of a limited company and earn income independently, you are considered self-employed for mortgage purposes.

Most lenders require at least 24 months of trading history, though some may consider applications with just one year of accounts.

Typically, lenders ask for two to three years of accounts.

Depending on your type of self-employment, having an accountant can be highly beneficial or even mandatory. Having an accountant can simplify the process and ensure your financial records are professional. For instance:

• Sole Traders: An accountant can help organize and present your income and expenses accurately.

• Limited Company Directors: An accountant is mandatory, as they prepare salary, dividend records, and ensure compliance with financial regulations.

• Contractors and Freelancers: An accountant can consolidate varied income sources into a clear format for lenders.

Yes, some lenders offer mortgages to applicants with just one year of accounts, especially if you have a good credit score and a larger deposit.

Not necessarily, but having a larger deposit can improve your chances of approval and access to better rates.

Interest rates are typically the same, but your rate depends on your financial situation and the lender’s criteria.

Yes, lenders often average your income over the past two or three years to account for fluctuations.

Lenders often either take the average of the last two years of income or use the lower of the two years, whichever is lower, to calculate your income. This approach helps them assess affordability despite fluctuations.

Yes, lenders allow you to combine income from multiple sources, such as part-time employment with at least 1 year history, and other self-employment income.

Brokers understand the complexities of self-employed income and can connect you with lenders who specialize in these types of mortgages.

Lenders often accept contractor and freelance income, using your contract history or averaging recent earnings to assess affordability. Contact us for further assistance.

Yes, they often consider salary and dividends or share of net profit when assessing affordability for company directors.

Most lenders will prefer to use the latest two years of PAYE income plus dividends to calculate your income. However, some may consider retained profits under specific circumstances. Some lenders will consider retained profits as part of your income, particularly for limited company directors.

It depends on how the lender is assessing their income. Some lenders treat CIS workers as self-employed, requiring two years of records, while others consider them employed and ask for less proof of income. Contact us for further assistance.

Yes, many lenders specialize in self-employed mortgages and have criteria tailored to non-traditional income sources.

You may need to wait until you have at least one year of trading history, though some lenders may consider you with a strong deposit and credit score.

Maintain a strong credit score, keep detailed financial records, save for a larger deposit, and work with a knowledgeable mortgage broker.

You’ll need tax returns and SA302 forms, which can be obtained from HMRC via your online tax account or through your accountant. Additional documents include bank statements and proof of identity and address. Typically, you’ll need tax returns, SA302 forms, bank statements, and proof of identity and address.

Yes, self-employed individuals can remortgage, and a broker can help you find competitive rates and options.