★ Self-employed mortgage specialists ★ Sole traders, directors & contractors considered ★ Complex income expertise ★ Whole-of-market advice
Self-Employed
Mortgages
Drummonds Finance Group
Being self-employed shouldn't make buying a home harder, but lenders' rules on self-employed income vary more than almost anything else in mortgages. One lender might use your salary and dividends, another your share of company profit, another your day rate. We find the lender that looks at your income in the most favourable way, so you can borrow what you can genuinely afford.
At Drummonds Finance Group, we compare mortgage options from across the market to find lenders that understand self-employed income, including sole traders, limited company directors, contractors and business owners, alongside your accounts, tax returns, deposit and individual circumstances.
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Can you get a mortgage if you're self-employed?
Yes. Self-employed borrowers can get the same mortgages as employed borrowers, from high street banks as well as specialist lenders, and often at the same rates. What changes is how your income is proved and calculated.
Instead of payslips, lenders look at your tax calculations, company accounts or contracts, and each lender has its own rules on how many years they need and which figures they use. Choosing the lender that suits how you're paid can make a difference of tens of thousands of pounds to what you can borrow.
Why Choose Drummonds for Self-Employed Mortgages
✅Whole-of-Market Access
We compare mortgage options from across the market to identify lenders whose affordability calculations work well with your NHS income and circumstances.
✅Self-employed mortgage specialists
We regularly help sole traders, limited company directors, contractors and business owners secure mortgages.
✅Different ways of assessing income
Some lenders use salary and dividends, while others may consider retained profit, net profit or your latest year's figures.
✅One year's accounts considered
Depending on your circumstances, some lenders may consider applicants with only one year's trading history.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
How many years of accounts do I need for a mortgage?
Most lenders ask for two years of accounts or tax calculations, but a good number will lend on one full year. A smaller group will consider less than a year, usually for contractors or for people who have moved from employment into self-employment in the same line of work.
Fewer years means fewer lenders, but not necessarily worse rates. Our guide on getting a mortgage with one year's accounts explains which situations work and what lenders look for.
What documents do self-employed mortgage applicants need?
Lenders usually ask for some or all of the following:
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SA302 tax calculations and tax year overviews for the last one to two years, which you can download from your HMRC online account
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Company accounts for the last one to two years, if you trade through a limited company
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An accountant's certificate or reference, for some lenders
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Business and personal bank statements, usually for the last three months
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Contracts, if you're a contractor, showing your day rate and length of contract
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Payslips or CIS statements, if you pay yourself a salary or work under CIS
Having these ready before you apply speeds things up considerably. Our full checklist of what documents you need for a mortgage covers ID, deposit and everything else.
How much can I borrow if I'm self-employed?
Most lenders offer up to four to four and a half times your income, and some go to five times or more for higher earners or certain professions. Our 5x and 6x income mortgages page explains when larger multiples are possible.
The bigger factor for self-employed borrowers is usually which income figure the lender uses. A company director drawing a small salary and modest dividends could see their borrowing double with a lender that uses their share of company profit instead. Our mortgage calculator gives a quick guide, and we can tell you what each lender would actually use.
Can company directors use retained profits for a mortgage?
Yes, with the right lender. Many directors leave profit in the company for tax reasons, which keeps their personal income low on paper. Some lenders look past that and use your salary plus your share of the company's net profit, either before or after corporation tax.
This is one of the most valuable things a broker can do for a director, because most high street lenders' online calculators only use salary and dividends. If your company has more than one shareholder, the lender will use your share of the profit, based on your shareholding.
Mortgages for contractors
Contractors are often assessed on their day rate rather than their accounts. A lender will typically multiply your day rate by five days and then by 46 to 48 weeks to reach an annual income, which usually gives a far higher figure than your company accounts would.
Lenders generally want to see a current contract and some history of contracting, often 12 months, although some accept less if you worked in the same field as an employee before. Contracts inside IR35 and umbrella company arrangements can also be assessed on the day rate with many lenders.
Mortgages for CIS and construction workers
If you work under the Construction Industry Scheme, lenders vary in how they treat you. Some assess you like an employee, using your gross pay from recent CIS statements or payslips, which helps if you're newly self-employed. Others treat you as self-employed and use your tax calculations. Choosing the right approach can make a big difference to how much you can borrow and how soon you can apply.
What if my income has dropped or gone up?
If your income has risen, look for a lender that uses your latest year instead of an average, so you get credit for the higher figure. If it has fallen, most lenders will use the lower year, and some will want an explanation, such as a one-off contract ending or time off.
Timing your application around when your next tax return is filed can make a real difference. We'll tell you whether to apply now or wait until your latest figures are available.
How much deposit do self-employed buyers need?
The same as anyone else. Self-employed buyers can get 95% mortgages with a 5% deposit, although a 10% deposit or more opens up more lenders and lower rates. If you're buying your first home, our first-time buyer mortgages page covers the process, and family can help through a gifted deposit or a joint borrower sole proprietor mortgage.
Are self-employed mortgage rates higher?
Not usually. If your income is clear and your credit file is good, you'll normally get the same rates as an employed borrower. Rates are only higher if you need a specialist lender, for example because you have less than a year's trading history or credit problems, and even then it's often only for the first few years until you can move to a mainstream deal.
Remortgaging when you're self-employed
If your fixed rate is ending, a product transfer with your current lender usually means no new income checks, which can be a big advantage if your profits have dipped. If you want to borrow more or find a better rate, a remortgage to a lender that suits your income works the same way as a purchase. We'll compare both before you decide.
Self-employed landlords and buy-to-let
Most buy-to-let lenders base their lending on the rent rather than your income, but many still want you to have some personal income, and being self-employed is fine. If you're thinking about buying through a limited company, our limited company buy-to-let page and our guide to limited company versus personal name buy-to-let explain the options, and our buy-to-let mortgage page covers the rest.
How can I improve my chances of a self-employed mortgage?
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File your tax return early, so your latest figures are available to lenders as soon as possible.
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Speak to your accountant and to us before the year end, especially about how much salary and dividend to draw, because it directly affects what most lenders will use.
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Keep business and personal money separate, so your bank statements are easy for lenders to follow.
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Avoid new credit before applying, and keep every payment up to date.
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Have your documents ready, including two years of tax calculations, accounts and recent bank statements.
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Get advice before applying. Applying to the wrong lender and being declined leaves a mark on your credit file.
Why use a broker for a self-employed mortgage?
Self-employed criteria are where lenders differ most, and those differences are rarely published in full. A broker who places self-employed cases every week knows which lenders use net profit, which accept one year's accounts and which look at your day rate, and can present your income in the way each lender needs to see it.
We're a whole-of-market broker, so we compare high street and specialist lenders side by side. That means you apply to the right lender first time, with the income figure that gives you the most borrowing.
How the process works
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We talk through how you're paid, your business set-up and your plans.
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We review your tax calculations, accounts or contracts to work out the income each lender would use.
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We identify the lenders that will lend you the most at the best rate.
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We get a mortgage in principle so you can make offers with confidence.
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We submit your application and manage it through to completion, dealing with any questions from the underwriter.
Self-employed mortgage broker in Oxfordshire and across the UK
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We're based in Wendlebury and help self-employed buyers and homeowners in Oxford, Bicester, Banbury and across the UK, with appointments by phone or video at times that fit around your business.
Frequently asked questions
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
On this page we have explained how self-employed mortgages work for sole traders, partners, limited company directors, contractors and CIS workers. We have covered how lenders calculate self-employed income, how many years of accounts you need, the documents to have ready, how much you can borrow, using retained profits, changes in income, deposits and rates, remortgaging, buy-to-let, how to improve your chances, and how we arrange your mortgage from start to finish.