Question 1

Can I get a mortgage with only 1 year's accounts?

Accepted Answer

Yes, several specialist and some mainstream lenders accept 1 year's accounts. You'll typically need strong income evidence, a good credit history, and potentially a larger deposit. Some lenders may use projected income for new businesses.

Question 2

How do lenders calculate limited company director income?

Accepted Answer

It varies significantly. Some use salary only, others use salary plus dividends, and specialists may use net profit or retained profits. The best approach depends on how you structure your income and which calculation method gives you the highest figure.

Question 3

Do contractors qualify as self-employed for mortgages?

Accepted Answer

Not always. Day-rate contractors can often be assessed on their contract rate rather than historic accounts, which typically results in higher borrowing. This requires specialist lender access and proper presentation of your contracts.

Question 4

What documents do self-employed applicants need?

Accepted Answer

Typically: 2-3 years' SA302s and tax year overviews, business accounts (certified or accountant-prepared), bank statements, and proof of ongoing work. Requirements vary by lender and your business structure.

Question 5

Can CIS workers get mortgages?

Accepted Answer

Yes, CIS (Construction Industry Scheme) workers can access mortgages. Some lenders treat CIS income like employment (using gross income), while others require self-employed documentation. Specialist lenders often offer the best terms.

Self-Employed Mortgage Criteria

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