FOR THE SELF-EMPLOYED
Self employed mortgages
Running your own business shouldn’t make buying a home harder. As a specialist self employed mortgage broker, we know which lenders accept one year’s accounts, how each one works out your income, and how to present your case so it has the best chance of approval.
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How lenders assess a self employed mortgage
When you’re self-employed, lenders usually work out your income from your SA302 tax calculations and tax year overviews, or from accounts prepared by your accountant. But they don’t all use the same figures:
Average of two years. Many lenders take the average of your last two years’ profit. If your income has grown, this can hold you back.
Latest year only. Some lenders will use your most recent year’s figures, which can help if your business is growing.
One year’s accounts. A number of lenders, including some on the high street, will consider a self employed mortgage with just 12 months of trading, often depending on your previous experience in the same line of work.
Many people are told they need two or three years’ accounts before they can buy. Often that isn’t true. It depends on choosing the right lender for your figures.
What you’ll usually need
✓ Your latest SA302s and tax year overviews (1 to 2 years)
✓ Sometimes accounts or an accountant’s certificate
✓ Recent personal and sometimes business bank statements
✓ Proof of any other income
✓ Photo ID and proof of address, plus proof of deposit if you’re buying
How we help with your self employed mortgage
We look at your figures the way a lender will, then match you with lenders whose rules suit how long you’ve been trading and how your income has changed. We prepare your case properly, deal with the lender’s questions and keep you updated, so you can keep running your business.
A REAL CLIENT STORY
Other brokers told her she needed two years’ accounts. With just 12 months’ trading, we secured a mortgage offer from a high street lender in less than a week, with a 5% deposit.
Every case is different. Mortgages are subject to lender criteria and affordability.
Self employed mortgage FAQs
Can I get a mortgage with one year’s accounts?
Yes, several lenders will consider one year’s trading, especially if you worked in the same field before going self-employed. We’ll check which lenders suit your situation.
My profit dropped last year. Will that be a problem?
Some lenders use the lower of your last two years, while others look at the average or the trend. A clear explanation for the drop can also help. We’ll find the lender that suits your figures.
How much deposit do I need as a self-employed applicant?
Some lenders accept a 5% deposit from self-employed applicants, while others ask for 10% or more. A bigger deposit usually means more choice and better rates.
Do I need an accountant?
Not always. Many lenders work from your SA302s and tax year overviews, which you can download from HMRC. Some will ask for accounts or an accountant’s certificate.
I’m a company director, not a sole trader. Is this the right page?
Directors of limited companies are assessed differently. See our limited company director mortgages page.
I work in construction under CIS. Does that count?
Yes, and some lenders can use your gross CIS income. See our CIS contractor mortgages page.
Want a quick idea first? Try our mortgage borrowing calculator.
BOOK YOUR FREE CONSULTATION
Talk to a specialist about your self employed mortgage.
Tell us how long you've been trading and what you're planning. We'll explain which lenders could suit you, and what you could borrow, before you apply anywhere.
Free 30-minute consultation
✓ Pick a time that suits you
✓ Phone or video call
✓ No obligation to proceed
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