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Mortgages for self-employed people

Journalist: Emily Mee, The Sun

ended 18. March 2026

Hello! We're putting together a 'Mortgage SOS' piece for the paper and online answering readers' questions on what's happening in the mortgage market right now. Please could we get some comment on what you should do now if you're self-employed and want to take out a mortgage. Thanks! 

9 responses from the Newspage community

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Sarah Ward-Novak
Broker at Identity Financial Solutions
Self-employed borrowers can absolutely still get a mortgage, but preparation is key. It's important to speak to a broker early to review your last two years’ figures and sense check affordability before applying. With the tax year end approaching, it’s worth considering whether submitting your 2025/26 figures will strengthen your position. Planning this with your accountant can make a big difference. If you’re a limited company director, it’s not just salary and dividends. Some lenders will consider net profit, which can improve how much you can borrow. Even with one year’s accounts, don’t assume it’s a no. Some lenders will consider this, so it’s always worth a conversation. And if now isn’t the right time, you can put a clear plan in place for when it is. Getting mortgage-ready for a purchase or remortgage early means you can move quickly in a fast-changing market.
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Justin Moy
Managing Director at EHF Mortgages
For the self-employed, we would encourage you to be document-ready, ensuring you have your Self-Assessment Tax Return, the summary calculation page (SA302), and the Tax Year Overview. Most will rely on their accountant to provide this, so don't spend hours on the HMRC website yourself. Having a copy of the most recent company accounts will also help identify whether better terms are available from more specialist lenders who will consider any retained profits. Take time to understand your figures too - what is salary, net profit, dividends - this will help brokers ensure you have good advice and an idea of what you can afford to borrow. Don't hide behind the 'My Accountant does all that' excuse, it's important to know your numbers.
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Michelle Lawson
Director at Lawson Financial
Many people believe getting a mortgage when you are self employed is a task. This isn't always the case. An experienced broker can give the appropriate advice and help you navigate the lender policy around this to enable them to get comfort in your ability to service the debt. This can be done in a variety of ways. When you are self employed and want a mortgage, you need to be organised- especially in the run up to the end of the tax year. If you have a mortgage product ending towards the end of this year or early 2027, let your accountant know or get your tax assessment actioned asap- you don't have to pay your tax yet- you will just need the resulting documents for a mortgage and your accounts to be up to date. Self employed figures usually have a shelf life of 18mths validity. For those that are contractors there are exceptions to this rule.
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Dariusz Karpowicz
Director at Albion Financial Advice
Self-employed and profitable but can't borrow what you need? The culprit is usually sitting in your tax return. If you've spent years keeping taxable income low, lenders will take that figure at face value. To them, your declared income is your income, full stop.
Before the tax year ends, check whether your 2025/26 figures actually reflect what you earn. Limited company directors have options; some lenders look at net profit, not just salary and dividends. Even one year's accounts can work with the right lender. The key is making sure your taxable income tells the true story before you apply.
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Simon Bridgland
Broker at Charwin Private Clients
Supplying your figures upfront to your adviser will help you get faster sold answers as to what you can successfully borrow. So supplying your personal Tax Calculations and the corresponding Tax Year Overviews as well as accounts can help for early sucess. When you speak with your adviser, remember that only income you can evidence you earn, is what will be used. Thinking you can use income from your undeclared, cash only side hustle wont wash, you can't have your cake and eat it. If you know your are about to submit your latest years books, then you really want them to look their best. So many people are hell bent on reducing a tax bill and try to have low figures, but it will come back and shoot you in the foot for borrowing purposes. Lenders will naturally want good solvent applicants with healthy accounts.
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Martin Rayner
Financial Adviser at Compton Financial Services
“For self-employed borrowers, the key is not to assume you need years of accounts or that your options are limited, as many lenders are more flexible than people realise.

Some will consider applications with just one year’s figures, while others—particularly for limited company directors—may look at salary + dividends or salary + net profit depending on the lender.

Contractors can also be assessed differently, with some lenders using day rates or contract values rather than traditional income calculations.

With mortgage rates having increased, it’s more important than ever to speak to a broker who can fully assess your income and situation and find you the best mortgage.

The biggest mistake is assuming you won’t be accepted and doing nothing, as there are often more options available than people expect.”
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
Self employed people and company directors should understand what level of profit is needed to secure the borrowing they need before accounts are finalised. There are sometimes things that can make figures look artificially worse, which although tax efficient, don't help when it comes to getting a mortgage.
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Jamie Alexander
Mortgage Director at Alexander Southwell Mortgages
If you’re self-employed and thinking about a mortgage right now, the biggest priority is clarity and timing. That means your figures need to be clean, consistent, and easy to evidence from day one.

In practical terms, that’s having your latest accounts finalised, your SA302s and Tax Year Overviews ready, and a clear understanding of how your income is structured. Different lenders assess self-employed income in very different ways, some will focus purely on salary and dividends, while others will take a more holistic view, including retained profit. Choosing the right lender is often the difference between a decline and a strong approval.

The current market also makes timing more important. Rates are moving quickly, so being prepared allows you to act when opportunities arise rather than scrambling for documents while deals disappear.
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Rohit Parmar-Mistry
Founder at Pattrn Data
If you are self employed, the key is making your income legible to a lender. Most will want two years of accounts or SA302s plus tax year overviews, and they often base affordability on an average of your net profit. If your latest year is weaker, expect them to lean towards the lower figure.

If you run a limited company, ask how the lender treats salary, dividends, and retained profit. Some only count what you pay yourself, others will consider retained earnings if an accountant can evidence it. A broker helps because criteria varies by lender and shifts fast.

Practical steps: get filings up to date, keep business and personal banking separated, reduce short term credit usage, and be ready to explain any income volatility. A bigger deposit widens lender choice and reduces rate pain. Finally, keep a cash buffer and pick a payment you can still afford if work slows, not the maximum the bank will offer.

Source: https://app.newspage.media/news-alerts/mortgages-for-self-employed-people