Self-employed mortgages: a complete guide

Being self-employed used to be a problem for mortgages. In 2026 it really isn't, provided you go to the right lender. The myth that self-employed borrowers can only borrow 3× income or need 5 years of accounts is decades out of date. Plenty of mainstream lenders happily lend 4-5× income to self-employed borrowers after 1-2 years of accounts.

What does still matter: choosing the right lender for your specific income structure. Sole trader, director-shareholder, contractor, LLP partner, these are treated very differently by different lenders, and the wrong choice can mean half the borrowing of the right choice.

Know which bucket you're in

Sole trader / unincorporated

Lenders look at net profit from self-assessment (SA302 / tax calculation plus tax year overview). Usually average of last 2 years, or latest year if declining. Simple to evidence but net profit can undersell earnings if you invest heavily in the business.

Limited company director

Two main approaches: (1) salary + dividends taken, (2) salary + director's share of retained company profit. The second approach, which a minority of the lenders on our panel will consider, often allows significantly more borrowing because it reflects the actual company performance not just the money drawn.

Contractor (day-rate)

A specialist group of lenders use day rate × 5 days × 46-48 weeks, ignoring accounts and dividends entirely. Usually 3-4× the borrowing of accounts-based underwriting for the same person. See our contractor mortgages page.

LLP partner

Evidenced via SA302 of your personal drawings plus LLP accounts. Usually 2 years evidence. Some lenders will treat this as if you were a director of a limited company (taking more account of retained profit), most take only the drawings.

Multiple income sources

Dual income, salary plus self-employment, two self-employments, etc. Most lenders will add both, a few will ignore the smaller. Worth shopping around when your structure is mixed.

Very recent self-employment

Minimum 1 year's trading accounts is the typical floor. Under 1 year, very difficult but not impossible with strong employed history in the same field (e.g. recently gone contractor). Specialist lenders exist for this.

The evidence you'll need

Typical self-employed evidence pack:

• Last 2 years SA302s (tax calculations) plus tax year overviews, HMRC documents you can download from your personal tax account.
• Last 2 years company accounts if a limited company. Finalised, signed, ideally by an accountant.
• Accountant's letter / certificate if the lender asks, not all do.
• Last 3 months business bank statements, to verify current trading.
• Last 3 months personal bank statements, drawings, dividends and general financial conduct.
• ID and proof of address. Standard.
• Projection for current year if latest accounts are more than 6 months old.

Some lenders require accounts filed and signed by a qualified accountant (ACA/ACCA/CIMA); others accept accountant-prepared figures in specific formats. We'll tell you exactly what's needed before you gather anything.