How to Get a Mortgage If You're Self-Employed: A Practical UK Guide
Published 27th of June 2011·Updated 23 April 2026
Reviewed by: Reviewed for accuracy April 2026
Self-employed people can get mortgages from most mainstream UK lenders, including Halifax, NatWest and Nationwide. The process is more involved than for salaried employees because you need to prove your income through tax returns and accounts rather than payslips - but with the right documentation and, ideally, a specialist broker, it is entirely achievable.
Short Summary
Most lenders require at least two years of self-employment history, though some will consider applications with one year of accounts. You will typically need to provide your SA302 tax calculations and tax year overviews from HMRC, as well as certified business accounts prepared by a qualified accountant.
Lenders assess self-employed income differently depending on your trading structure. Sole traders are usually assessed on their net profit. Directors of limited companies are typically assessed on their salary plus dividends.
A specialist mortgage broker with experience in self-employed cases can access deals not available on comparison sites and knows which lenders are most receptive to your specific income structure. Many charge a fee, but the access they provide can more than compensate.
The bigger your deposit and the longer your trading history, the stronger your application. A 15 to 20 per cent deposit significantly widens the range of lenders available to you.
What documents do self-employed applicants need for a mortgage?
The exact requirements vary by lender, but most will ask for the following:
| Document | What it shows |
|---|---|
| SA302 tax calculations (last 2-3 years) | Your declared income to HMRC |
| Tax year overviews from HMRC | Confirmation that SA302s are accurate |
| Certified business accounts (last 2-3 years) | Profit, turnover and business health |
| Bank statements (personal and business, last 3-6 months) | Cash flow and spending patterns |
| Proof of upcoming contracts (for contractors) | Evidence of continuing income |
You can download your SA302 and tax year overviews directly from your HMRC online account. If you use an accountant, they can also provide certified copies.
How many years of accounts do I need?
Most high-street lenders, including Barclays, HSBC and Lloyds, require at least two years of accounts. Some - including a number of specialist lenders accessible through brokers - will consider applications with one year's accounts, though they may charge a higher rate or require a larger deposit in return.
If you have recently become self-employed after a period of salaried employment, some lenders will take your previous salary history into account alongside your first year of self-employed accounts. A broker familiar with self-employed cases will know which lenders are most flexible in this area.
How do lenders calculate a self-employed person's income?
How your income is calculated depends on how you trade.
Sole traders and partnerships: lenders typically base their assessment on your net profit (after business expenses). If your profit has been growing year on year, most lenders will use the most recent year's figure. If it has fallen, many will use an average of the last two or three years.
Limited company directors: lenders generally look at your salary plus dividends rather than the company's turnover or retained profit. Some specialist lenders will also consider retained profits within the company, which can significantly increase the amount you can borrow.
Contractors: some lenders - particularly those experienced in contractor mortgages - assess income based on your day rate multiplied by an assumed number of working days per year (often 46 or 48 weeks), which can be more favourable than using your declared profit.
Should I use a mortgage broker if I'm self-employed?
Using an independent, whole-of-market broker is strongly recommended for self-employed applicants. Brokers can identify lenders whose criteria suit your specific income structure, and they have access to exclusive rates not available on comparison sites.
Crucially, a good broker will advise you which lenders to approach and in what order, avoiding unnecessary credit applications that could damage your score. The cost of a broker fee (typically £300 to £500, though some charge a percentage of the loan) is usually worthwhile given the complexity of self-employed applications.
Look for a broker who is authorised and regulated by the FCA, and check their credentials at register.fca.org.uk.
How can I strengthen a self-employed mortgage application?
Several practical steps can improve your chances before you apply.
Pay down existing debts, particularly credit card balances, to reduce your debt-to-income ratio. Register on the electoral roll if you have not already done so, as this is a basic credit score requirement. Make sure your accounts are prepared by a qualified accountant and are submitted to HMRC on time.
If your net profit is lower than your actual income because you have claimed significant expenses, discuss with your accountant whether it is worth reducing some discretionary expense claims in the year or two before applying. This is a legitimate decision that can increase the income figure lenders see.
FAQ
Can I get a mortgage with only one year of self-employment?
Yes, but your options are more limited. A handful of specialist lenders will consider one year of accounts, often at a slightly higher rate or with a larger deposit requirement. A specialist broker is your best route to finding these lenders.
Do lenders treat contractors differently from sole traders?
Yes. Many lenders that understand contracting assess income using your day rate rather than your net profit, which can result in a much higher income figure and a larger mortgage offer. Make sure your broker has experience with contractor mortgages specifically.
Does being self-employed mean I will pay a higher interest rate?
Not necessarily. The mortgage rate you receive is primarily based on your loan-to-value ratio (how big your deposit is) and your credit score. A self-employed person with a 25 per cent deposit and a clean credit history can often access the same rates as a salaried employee.
What if my income has varied a lot between years?
Significant income variation makes applications more challenging. Most lenders will average out the last two or three years, which can reduce your assessed income. If your income has recently increased substantially, a specialist lender or broker can help you find a lender that will use the most recent year's figure alone.
How long does the self-employed mortgage application process take?
The timeline is broadly similar to any mortgage application: four to twelve weeks from application to completion, depending on the lender, the property and the speed of solicitors. Having all your documents ready before you apply avoids unnecessary delays.