Can I get a mortgage if I'm self-employed in the UK?
Yes, self-employed borrowers access the same mortgage rates as employed applicants once approved. Most lenders require 2 years of accounts, but some accept just 1 year for contractors in their profession. You'll typically borrow 4-4.5 times your annual income. Required documents include SA302 tax calculations, accountant-certified accounts, and recent bank statements.
Specialist in contractor, company director, and sole trader mortgages.
Can I get a mortgage if I'm self-employed in the UK?
Yes, self-employed people can get mortgages in the UK. Most lenders require 2 years of accounts, but some accept just 1 year for contractors or those new to self-employment in their previous industry. Lenders typically offer 4-4.5 times your average annual income. You'll need SA302 tax calculations, accounts certified by an accountant, and bank statements. Rates are the same as employed borrowers once approved.
Self-Employed Mortgages: Quick Summary
- •Yes, self-employed can get mortgages—same rates as employed once approved
- •Most lenders need 2 years' accounts, but some accept just 1 year for contractors
- •Income calculated from SA302s, net profit, or day rate × 48 weeks
- •Directors can use salary + dividends, or net profit if higher
- •Deposit requirements same as employed: typically 5-15% minimum
Content reviewed: 13 January 2026
What is it?
A standard mortgage assessed using self-employed income evidence. Lenders calculate income from business accounts, tax returns (SA302), or contracts rather than simple payslips. Not a separate product but requires specialist income assessment.
Who qualifies?
- Sole traders with 1-3+ years trading history
- Limited company directors (salary plus dividends)
- Contractors with day rate evidence
- Partnership members
- Freelancers with regular income
Typical deposit
5-10% for well-evidenced income. Complex cases or newer businesses may need 15-25%.
Typical rates
Same as employed applicants with similar LTV and credit profile. No premium for self-employment if income is well-documented.
Documents needed
- 2-3 years SA302 tax calculations
- 2-3 years tax year overviews
- 2-3 years business accounts (certified if limited)
- Accountant's certificate/reference
- 3-6 months business bank statements
Real Example
Situation: Graphic designer, 4 years self-employed, average profit £52,000 over 3 years, buying £320,000 property.
Outcome: Approved at 4.5x income (£234,000 mortgage) with 10% deposit. Used profit averaging across 3 years rather than latest year alone.
Why Self-Employed Mortgages Are Different
Self-employed mortgages aren't technically a separate product—they're standard mortgages with more complex income verification. The challenge isn't finding a mortgage, it's proving your income in a way lenders understand and accept. If you're combining self-employment with adverse credit issues, or planning to remortgage later, we have specialist solutions.
Unlike employed applicants with simple payslips, self-employed income is calculated from business accounts, SA302 tax returns, or contract rates. Each lender has different methods for calculating income, varying account requirements, and unique approaches to expenses, dividends, and retained profits. First-time buyer self-employed applicants benefit from specialist rates and tailored guidance.
The right lender can make thousands of pounds difference to your borrowing capacity, simply through how they calculate your income. That's where specialist advice becomes invaluable.
Why Choose Your Home Finance
Lenders who understand self-employed income and don't rely on standard employed criteria
We know how to present complex income, accounts, and contracts for maximum approval chances
Access to lenders with varying account requirements, from 1 to 3 years depending on circumstances
Quick review of your accounts and income to determine the best approach for your application
We Work With All Types of Self-Employed Applicants
Each business structure has unique income verification requirements
Day rate or contract-based income, including IT, engineering, and construction contractors. We work with lenders who understand contract renewals and industry-standard rates.
Limited company directors with salary/dividend combinations. We know how to calculate income using net profit, dividends, and retained earnings for optimal borrowing.
Self-employed individuals trading in their own name. We work with your SA302s and tax calculations to demonstrate true income after allowable expenses.
Business partners sharing profits. We understand partnership accounts and how to evidence your share of income for mortgage purposes.
Portfolio workers with multiple income streams. We help consolidate and present varied income sources to demonstrate stability and affordability.
Less than 2-3 years trading. Some lenders accept 1 year's accounts, especially if you're in the same industry as previous employment.
Self-Employed Mortgage Insights: Expert Tips
Understanding how lenders assess self-employed income
Self-employed income is calculated differently than employed. Sole traders: average of last 2-3 years' net profit from SA302s. Directors: salary plus dividends, or net profit if higher. Contractors: day rate × contract length. Lenders vary on which method they use and whether they average or use latest year. We know which lenders offer the best calculations for your situation.
Most lenders require 2 years' accounts, but options exist with just 1 year, especially for contractors or those newly self-employed in their previous industry. Accounts must be certified by a qualified accountant (not always requiring full audits). Some lenders accept projected figures for the current year. SA302s and tax year overviews from HMRC are typically required.
Construction Industry Scheme contractors have unique income verification. Many lenders accept CIS payslips and tax deductions as proof of income. Some require just 3-6 months' consistent CIS income rather than full accounts. We know which lenders are most flexible with CIS contractors and can calculate your income using gross earnings before 20/30% tax deductions.
Directors can use salary plus dividends, or net profit if higher. Some lenders allow retained earnings in the company to count toward income. Directors with low salary but high dividends need specialist lenders. We understand how to optimise your income calculation, whether using dividends, profit extraction, or company accounts for the best borrowing amount.
Self-employed applicants typically need 10-15% deposit minimum, same as employed. Larger deposits (20-25%) may unlock better rates and more lenders. Rates for self-employed are generally the same as employed applicants once approved—there's no 'self-employed penalty' with most mainstream lenders. The key is proper income verification and presentation.
Choose the right income calculation year—latest vs. average can make thousands of difference. Add back non-cash expenses (depreciation) where lenders allow. Include all eligible income sources consistently. Time applications after strong trading years. Consider joint applications to include partner's income. Use specialist lenders who understand industry-specific income patterns.
For comprehensive guidance covering all self-employed scenarios, visit our Self-Employed Mortgages Hub
Frequently Asked Questions
Written by Specialist Advisers
This guide is created by Your Home Finance's FCA-regulated advisers who specialise in self-employed mortgages. With 29 years' experience and hundreds of successful applications, we understand every income structure from contractors to company directors.
Last updated: November 2024 • All information verified and current with 100+ lenders
Specialists in contractor, director, and sole trader mortgages • Quick income assessment • Whole-of-market access to 100+ lenders
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