Self-Employed Mortgage Broker
Self-employment doesn't stop you getting a mortgage. The right broker finds the lenders built for your situation.
Self-employed mortgages are more widely available than many people think. The majority of UK lenders will consider self-employed applicants, the key difference is in how they assess your income. Where an employed applicant can simply provide payslips, self-employed applicants need to evidence income through accounts, tax returns, and other documentation. For more information, see the HMRC self-assessment.
This extra complexity is where having the right broker makes a real difference. We know exactly how each lender calculates self-employed income, which ones are most generous with limited company directors, and which will consider applications with just one year of accounts. We use this knowledge to match you with the lender that will offer you the most borrowing on the best terms available.
How much can I borrow as a self-employed person?
Borrowing capacity for self-employed applicants varies more than for employed applicants because different lenders use different income figures. Most lenders will offer 4–4.5 times your assessed income. For limited company directors, some lenders will use salary plus dividends, while others will use salary plus net profit, the latter can significantly increase the amount you can borrow.
For example, if you are a director taking a £30,000 salary and leaving £50,000 net profit in the company, a lender using salary and dividends only might assess your income at £30,000–£50,000. A lender using salary plus net profit might assess it at £80,000, a significant difference in borrowing power. This is one of the most important reasons to use a specialist self-employed mortgage broker.
Who might be treated as self-employed?
Lenders generally treat you as self-employed if you own 20–25% or more of the business you work through. This typically includes:
- Sole traders, you operate as an individual and are taxed on your profits via Self Assessment
- Partners in a partnership or LLP, your share of the partnership profits is treated as your income
- Limited company directors, particularly if you own 20%+ of the company shares
- Contractors working via a personal limited company (PSC), assessed on contract income or company financials
- Umbrella company contractors, some lenders treat these as employed if PAYE payslips are available
The category you fall into affects which documents you need and how lenders calculate your income. We will identify the right approach for your specific working structure.
Sole Traders
Ltd Company Directors
Limited Liability Partnerships
Day Rate Contractors
Umbrella Contractors
Construction Industry Contractors
We're here to help you find the right self-employed mortgage lender
Not all lenders are created equal when it comes to self-employed mortgages. Some use only the most recent year of accounts, some average the last two years, and some apply a conservative interpretation that can significantly reduce what you can borrow. Finding the right lender for your specific income structure is the most important step in the process.
We work with the full range of lenders, from high street banks with competitive rates to specialist lenders who take a more flexible approach to self-employed income. We will assess your situation, identify the best-fit lenders, and present your case in the strongest possible way to maximise your borrowing capacity and secure the most competitive rate.
Ways to prove your income
The documents required depend on your self-employed structure. Having these ready before you apply speeds up the process significantly:
- Last 2–3 years of SA302 tax calculations and corresponding tax year overviews from HMRC
- Last 2–3 years of full accounts (signed by a qualified accountant for Ltd company directors)
- 3–6 months of personal bank statements
- 3–6 months of business bank statements
- Proof of identity (passport or driving licence)
- Proof of address (utility bill or bank statement, less than 3 months old)
- Details of any outstanding business or personal credit commitments
We will provide a tailored document checklist for your specific situation and review your documents before submission to make sure everything is in order.
Sole Traders
SA302s Tax Calculation and Tax Year Overviews
SA302s are official tax calculations produced by HMRC when you file your Self Assessment tax return. Most lenders require the last 2 years of SA302s, along with the corresponding Tax Year Overviews (which confirm the tax was actually submitted to HMRC). These are available to download from your HMRC online account or can be obtained from your accountant. Lenders use the net profit figure from your SA302 to calculate your income for mortgage purposes.
Ltd Company Directors
Company Accounts, SA302s and Tax year Overviews
Limited company directors have more flexibility in how lenders assess their income. Some lenders use salary plus dividends taken from the company. Others, typically more specialist lenders, use salary plus the company’s net profit (whether or not that profit has been drawn as dividends). The latter approach can dramatically increase the income figure used in affordability calculations, enabling significantly higher borrowing. We will identify which lender approach is most beneficial for your specific dividend and profit structure.
Contractors
Payslips (umbrella contractors), copy of the agreement with the umbrella, copy of current contract and bank statements
Contractors often have the most flexible income treatment. For day rate contractors, some specialist lenders will annualise your day rate (day rate × 5 days × 46 working weeks) to calculate an equivalent annual income, without requiring 2 years of accounts. This can be extremely beneficial for contractors who have recently increased their rate. For umbrella contractors, PAYE payslips are often sufficient, and you may be treated as employed rather than self-employed by some lenders.
Why Choose The Mortgage Story for Your Self-Employed Mortgage Solution?
Self-employed income comes in many forms and is assessed differently by every lender. We take the time to understand your business structure, your accounts, and your financial goals, then match you with the lenders whose criteria best suit your situation. Whether you are a sole trader with one year of accounts, a limited company director looking to maximise borrowing against net profit, or a contractor with a strong day rate, we have the expertise to find the right solution.
What We Do For You
Source The Best Deals
As whole-of-market brokers, we compare products from every lender in the UK, including specialist self-employed lenders not available on the high street. We know which lenders are most generous with each type of self-employed income and match you to the one that maximises your borrowing on the most competitive terms.
Provide Additional Services
Beyond the mortgage itself, we can advise on income protection insurance (particularly important for self-employed individuals without employer sick pay), life cover, and critical illness cover. We can also refer you to accountants and solicitors experienced in working with self-employed buyers.
Work Quickly and Efficiently
We can issue a mortgage in principle within 24 hours of receiving your information, giving you confidence to make offers. Once your offer is accepted, we submit your full application promptly and manage the lender relationship throughout, chasing updates, responding to queries, and keeping you informed at every step.
Self-Employed and Contractor Mortgages
Whether you are a sole trader, limited company director, contractor, or freelancer, we have the experience and lender relationships to find the right mortgage for you. Get in touch today for a free consultation, we will review your situation, assess your options, and give you a clear picture of what you can borrow and on what terms before you commit to anything.