BASED IN GLOUCESTER · CLIENTS ACROSS THE UK
Self-Employed Mortgage Advice
Self-employed? Your income tells a story. Let’s help lenders understand it.
Being your own boss has plenty of advantages, but when it comes to arranging a mortgage, proving your income can sometimes feel more complicated.
Perhaps you’re a sole trader, company director, contractor or business owner. You may have a successful business but an income that doesn’t fit the traditional employed model.
The good news is that being self-employed doesn’t automatically prevent you from getting a mortgage.
Different lenders assess self-employed income in different ways. Understanding those differences can make a real difference when exploring your options.
With 30 years of experience in financial services, I’ll help you understand what lenders may be looking for and explore mortgage options suited to your circumstances.
Based in Gloucester, I support self-employed clients throughout the UK.
Your business is unique. Your mortgage advice should be too.
Can you get a mortgage if you’re self-employed?
Yes. Self-employed applicants can obtain mortgages, although lenders will normally require evidence of income and business performance.
The way your income is assessed depends on how your business operates.
Sole traders
If you operate as a sole trader, lenders will commonly look at your net profit rather than your business turnover.
They may request your SA302 tax calculations and corresponding tax year overviews.
Limited company directors
If you operate through a limited company, lenders may assess your income using salary and dividends, or in some cases salary and your share of company profits.
Different lenders have different approaches, so it’s important to understand how your income will be assessed.
Contractors
Contractors may have access to mortgage options where income is assessed using their contract rate.
Depending on the lender, they may also consider day rates, contract length and continuity of work.
Partnership income
If you’re a partner in a business, lenders may assess your share of partnership profits and other relevant income.
The evidence required will depend on the lender’s criteria.
How many years of accounts do you need?
One of the most common questions from self-employed applicants is how long they need to have been trading.
Some lenders may consider applicants with just one year’s accounts or tax records, while others may require two or more years.
The requirements vary depending on the lender, the nature of your business and your circumstances.
If you’ve recently become self-employed, don’t assume a mortgage is out of reach.
What if your profits are lower than your turnover?
A common challenge for business owners is understanding how lenders assess income.
For example, a limited company director may choose to retain profits within the business rather than draw them as dividends.
Some lenders may consider salary and dividends, while others may take a different approach to company profits.
The key is identifying lenders whose criteria reflect how your business operates.
How I can help
1
Understand your business
I’ll take time to understand how your business operates, how long you’ve been trading and how you receive your income.
2
Review your income evidence
We’ll look at the documents you have available and understand what lenders may require.
3
Explore suitable lenders
I’ll research mortgage options and lender criteria that may suit your circumstances.
4
Guide you through your application
I’ll help you understand the application process, the information required and the next steps towards your mortgage offer.
Self-Employed Mortgage FAQs
Can I get a mortgage with only one year’s accounts?
Potentially. Some lenders will consider applicants with one year’s trading history, although the options available depend on your circumstances and the lender’s criteria.
Do mortgage lenders use turnover or profit?
Generally, lenders assess income rather than simply using business turnover. How they calculate that income depends on whether you’re a sole trader, limited company director or contractor.
Can I get a mortgage if I leave profits in my limited company?
Potentially. Some lenders may consider retained profits when assessing income, subject to their criteria and your shareholding and involvement in the business.
Can I get a mortgage if my income changes each year?
Possibly. Lenders may look at an average of recent income or use the latest figures, depending on their criteria and whether income is increasing or decreasing.
What documents will I need?
This varies, but may include SA302 tax calculations, tax year overviews, company accounts, bank statements and other supporting information.
Can I remortgage if I’m self-employed?
Yes. Self-employed applicants can remortgage, subject to affordability and lender criteria.
Can I get a mortgage if I’ve recently started my business?
Possibly. Some lenders are more flexible than others when considering newer businesses. We’ll explore the available options.
Let’s talk about your mortgage options
You work hard to build your business. Finding a mortgage shouldn’t feel like another full-time job.
Let’s have a conversation about your business, your income and what you’re looking to achieve.