Self-employed
Mortgages Advice
Clear, expert mortgage advice for sole traders, contractors and limited company directors
If you are self-employed, getting a mortgage in the UK is absolutely possible. The key difference is not whether you qualify, but how your income is assessed. Instead of payslips, lenders rely on accounts, tax documents and a clear understanding of how your business earns money.
At Drummonds Finance Group, we specialise in helping self-employed clients secure mortgages by matching their income structure to lenders who understand it properly. Whether you are a sole trader, contractor or limited company director, our role is to make the process clear, calm and realistic from the very start.
Contact us today to start your mrotgage Journey.
How self-employed mortgage income is assessed
The most important thing to understand is that there is no single way lenders assess self-employed income. This is where many people go wrong by assuming all banks work the same way.
Most lenders will look at some combination of:
SA302 tax calculations
Tax year overviews
Full company accounts
Accountant certificates
Business bank statements
Who counts as self-employed for mortgage purposes?
For mortgage lending, you are classed as self-employed if your income comes from running or owning a business rather than being paid via PAYE.
This typically includes:
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Sole traders who report income through self-assessment
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Limited company directors who take a salary and dividends or Net Profits
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Contractors working via a limited company or umbrella company
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Partners in a business or professional partnership
Each structure is assessed differently by lenders, which is why specialist advice matters far more for self-employed borrowers than it does for employed applicants.
A key advantage many self-employed borrowers miss
One of the most important developments in self-employed mortgage lending is that some lenders will use salary and net profit instead of just salary and dividends.
This can be a huge advantage for limited company directors who:
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Retain profits within the business
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Keep dividends low for tax efficiency
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Have strong company performance but modest personal drawings
This is one of the biggest reasons self-employed borrowers benefit from using a broker who understands lender criteria in depth.
Common self-employed mortgage myths
Many self-employed borrowers delay applying because of outdated or incorrect information.
You do not always need three years of accounts
You do not need to earn more than employed borrowers
You are not automatically restricted to specialist lenders
You can still borrow a high loan-to-value in the right circumstances
The biggest risk is not being self-employed. The biggest risk is applying without tailored advice.
Self-employed mortgages for first-time buyers
Being self-employed does not prevent you from being a first-time buyer. In fact, many of our self-employed clients are buying their first home.
The process is very similar, but income assessment is more detailed. Planning ahead, understanding your accounts and timing the application correctly can make a significant difference.
