Getting a Mortgage When You Are Self-Employed or a Limited Company Director

This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.

Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026

Around one in seven UK workers is self-employed, yet the mortgage process is still designed around payslips. If you are a sole trader, in a partnership, or run your own limited company, lenders cannot rely on an employer's confirmation — so they reconstruct your income from tax records and accounts instead. That is not a barrier; it simply means the evidence matters more.

The single most important thing to understand is that lender criteria vary enormously in this area. The same set of accounts can produce very different borrowing figures at different lenders, depending on how they treat dividends, retained profit, averaging and recent trading. This guide explains the common approaches — but only a review of your actual figures against current criteria can say what is possible for you.

How different trading structures are assessed

Structure	Income a lender typically looks at	Usual evidence
Sole trader	Net profit (total income on your self-assessment)	SA302s and tax year overviews, usually 2–3 years
Partnership	Your share of the partnership's net profit	SA302s, tax year overviews and sometimes partnership accounts
Limited company director	Salary plus dividends — or, at some lenders, salary plus share of net profit	SA302s, tax year overviews, company accounts and business bank statements
Contractor (limited company)	Day rate annualised at some lenders; otherwise as a director	Current and previous contracts, plus company evidence
Contractor (umbrella)	Usually treated as employed income	Payslips and P60, like an employee

Common approaches only. Each lender sets its own policy, and policies change.

The evidence lenders commonly ask for

SA302 tax calculations for the last two or three tax years, downloaded from your HMRC account
Tax year overviews matching each SA302, confirming HMRC's records agree
Full business accounts prepared by a qualified accountant, especially for company directors
Business bank statements, typically three to six months, showing turnover and drawings
Personal bank statements, as with any mortgage application
Evidence of ongoing work for contractors — current contracts, renewals or a pipeline of engagements
An accountant's reference or projection, where a lender requests one

SA302s and tax year overviews are free from your HMRC online account — you should never need to pay a third party for them. Download them early: they cover complete tax years, so the figures available in, say, September may not yet include your most recent year's trading unless you have already filed.

Salary, dividends and retained profit: why the treatment matters

Many directors pay themselves a modest salary and take the rest as dividends — a legitimate, tax-efficient structure. Some lenders, however, assess only salary plus dividends actually drawn. If you leave profits in the company, that approach can understate what you could genuinely afford. Other lenders will look at salary plus your share of net profit before or after corporation tax, which can materially increase the assessed income.

Neither approach is 'right' — they are different policies. The practical consequence is that choosing a lender whose policy fits how you pay yourself is often the difference between an offer that works and one that does not. This is a core part of what a whole-of-market advisor does for director clients.

Variable income and recent trading

Where income fluctuates, most lenders average the last two or three years. Many take the lower of the latest year or the average, so a recent dip carries weight. If there is a genuine explanation — a deliberate sabbatical, investment in growth, a one-off event — document it. Underwriters are people; a clear narrative supported by evidence lands far better than hoping a dip goes unnoticed.

Recent trading also matters. Lenders may ask for business bank statements or an accountant's confirmation that trading since the last filed accounts remains in line with them. If your business has changed significantly since your last filing, be ready to explain and evidence it.

The role of your accountant

A good accountant is an asset in a mortgage application. Lenders frequently ask for an accountant's reference, certificate or projection, and some will only accept one from an appropriately qualified accountant (for example, a member of a recognised professional body). Make sure your accountant knows you are applying, responds promptly to reference requests, and can produce signed final accounts rather than drafts.

Legitimate preparation means accurate, complete, well-organised records — nothing more. Never be tempted to inflate declared income, backdate changes or 'optimise' figures for an application. Lenders cross-check against HMRC records, discrepancies trigger declines, and deliberate misstatement is mortgage fraud with serious consequences.

Why criteria vary — and what to do about it

Self-employed criteria sit at the intersection of a lender's risk appetite, its funding and its underwriting resource, so they differ more than almost any other area of mortgage policy. One lender may want three years' accounts; another accepts one. One ignores retained profit; another includes it. One treats a declining year as fatal; another averages it away.

The practical takeaway: do not assume a 'no' from one lender — or an unhelpful online calculator — is the final answer. A whole-of-market advisor sees these policy differences daily and can match your figures to the lenders most likely to view them favourably, before any application leaves a footprint on your credit file.

What lenders may assess

Declared income over the last two to three tax years, per HMRC records
How income is drawn: salary, dividends, partnership share or net profit
The trend in profits — rising, stable or falling — and the reasons behind any change
Trading history and time established, with some lenders accepting one year
Business bank statements confirming turnover and drawings are consistent with declared income
Personal credit history and outgoings, exactly as for employed applicants
For contractors: contract rate, duration, renewals and gaps between engagements
Deposit size and property type, as with any application

Every lender sets its own criteria, which change regularly. The points above are common themes, not a guarantee of how any individual lender will treat an application.

Frequently asked questions

How many years of accounts do I need for a self-employed mortgage?

Many lenders ask for two to three years of accounts or SA302s, but some will consider one year's figures, particularly for established professionals or where the overall case is strong. There is no universal rule — criteria differ widely between lenders and change regularly, which is why comparing across the whole of the market matters.

What is an SA302 and where do I get one?

An SA302 is HMRC's tax calculation summary showing the income you declared for a tax year. Lenders usually pair it with the corresponding tax year overview, which confirms the tax position matches HMRC's records. You can download both from your HMRC online account, or your accountant can obtain them.

Do lenders use salary and dividends or retained profit for company directors?

It depends entirely on the lender. Many assess directors on salary plus dividends; some will instead consider salary plus your share of net profit, which can help directors who leave profits in the business. The treatment of retained profit is one of the biggest areas of variation between lenders, so matching your circumstances to the right lender is important.

I've only been trading for a year — can I still get a mortgage?

Possibly. Your options are narrower with one year's trading, but some lenders will consider it, especially if you have a track record in the same line of work, a strong deposit, or contracts showing ongoing income (common for contractors). Expect more questions and be prepared to evidence future work.

My income varies a lot year to year — how will a lender treat it?

Most lenders average the last two or three years' figures, and many will use the most recent year only if it is lower — so a falling trend can hurt more than a rising one helps. Some lenders are more flexible for professions with naturally lumpy income. Being able to explain the reason for a dip, with evidence, can make a real difference.

Should I change how I pay myself before applying for a mortgage?

Get advice before making any change. Decisions about salary, dividends and drawings have tax consequences as well as mortgage consequences, and a change made shortly before an application can look odd to underwriters. Never inflate figures or manipulate accounts — lenders cross-check against HMRC records, and misrepresentation is fraud. Speak to your accountant and a mortgage advisor together.

Do I need a business bank account to get a mortgage?

Not always, but clean separation between business and personal finances makes an application much easier to assess. Lenders commonly ask for business bank statements alongside personal ones to verify turnover and that drawings match declared income. If you trade through a personal account, expect more scrutiny and more questions.

Does being a contractor count as self-employed for a mortgage?

It depends how you are engaged. Umbrella company contractors are often treated as employed, using payslips. Contractors working through their own limited company are usually assessed as directors, though some lenders will annualise a day-rate contract instead — which can produce a much higher borrowing figure. The lender's policy determines the route.

Sources and further reading

Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.

Residential mortgages

Whole-of-market advice for complex income, including directors and contractors.

Buy to let mortgages

Investing through a company or personally — the lending differences explained.

Mortgages after credit problems

If your credit history is as complex as your income.

Speak to an advisor

Tell us how you trade and we'll explain what evidence will be needed.

Talk it through with an advisor

Every case is different. A short, no-obligation conversation with a whole-of-market advisor is often the fastest way to understand your options. Call 0345 512 0077 or send us a message.

Contact an advisor