Near you, no matter where you are.
Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Mortgages · Specialist
Self Employed Mortgages
“You built the business. Let’s get you the home.”
Being your own boss shouldn’t make getting a mortgage harder, but with the wrong lender it often does. We’ll match you to a lender that sees your income the way it really is.
FCA regulated · whole of market · 90+ lenders · 5 star reviews
Quick answer
Self employed borrowers can access the same mortgages as everyone else. What changes is how lenders work out your income: net profit for sole traders, share of profit for partners, and salary plus dividends or share of net profit for directors. The main thing to know is that the right lender can make a big difference to what you can borrow.
Trading history
Usually 2 years, some accept 1
How lenders assess you
Profit, salary and dividends, or retained profit
When to start
Once your latest accounts are filed
Main thing to watch
How your income is averaged
How lenders assess self employed income
Sole traders are assessed on net profit, partners on their share of profit, and directors on salary plus dividends or, with some lenders, salary plus share of net profit.
Most lenders average the last two years. Some use the latest year if it’s higher, and some take the lower of the two.
Your SA302s and tax year overviews are the key evidence. Getting your accountant involved early avoids delays.
Company directors and retained profit
If you pay yourself a low salary and leave money in the company for tax reasons, a lender that uses share of net profit could significantly increase your borrowing.
Directors owning less than 20% to 25% are sometimes treated as employed instead. We’ll check which applies to you.
Eligibility and what lenders assess
Who may qualify
Sole traders, partners and limited company directors.
Deposit and LTV
The same as employed buyers, from 5% with some lenders.
Income and affordability
Based on accounts, SA302s and trends.
Credit history
Business and personal credit both looked at.
Property requirements
Standard residential criteria.
Common reasons for decline
Falling profits, late tax returns, or the wrong lender for your structure.
What happens from first call to completion
1
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
2
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
3
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
4
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
5
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
6
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- A drop in profit can reduce what lenders will offer
- Late filings delay applications
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- If your latest year is much lower, waiting for stronger accounts can help
- If you’ve just gone self employed, options exist but are narrower
What you will need
The exact list depends on your lender, but this is what to start gathering.
Photo ID and proof of address
Bank statements (usually 3 months)
Details of credit commitments
SA302s and tax year overviews
2 years of accounts
Business bank statements
Personal bank statements
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
Self Employed Mortgage FAQs
How many years of accounts do I need?
What if my income dropped last year?
Do lenders only look at salary and dividends?
Do I need an accountant?
Can I get a mortgage with one year trading?
Are rates higher for self employed?
Self employed and not sure what you can borrow?
Send us your last two years’ figures and we’ll show you how different lenders would read them.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.