Understand how your income may be assessed and what to prepare for a mortgage application.
Advice for sole traders, directors, partners, freelancers, contractors and CIS workers.
Working for yourself does not automatically rule out a mortgage. What matters is how a lender assesses your income, whether the repayments are affordable and whether the rest of the application meets its criteria. Standard residential mortgages may be available; there is no single set of rules for everyone who is self-employed.
This guide is for people buying or remortgaging their own home. Start with the way you work, then look at the evidence you have. You can speak to Count Ready before you have every document ready.
Your occupation is only part of the picture. A freelance designer might be a sole trader, run a limited company or combine freelance work with a PAYE job. A lender needs to understand the arrangement behind the income.
The discussion usually starts with your business profit, rather than sales or the money you transfer to yourself. Read about mortgages for sole traders.
Your share of profit and your role in the partnership matter. Equity partners, salaried partners and LLP members may be assessed differently. See our LLP mortgage guide.
A lender may consider salary and dividends, or a qualifying share of company profit under its own policy. Ownership and the company’s finances affect the assessment. Explore mortgages for company directors.
Identify whether your work is paid through self-employment, a company, PAYE or a mixture. Contracts and payment history may help explain irregular earnings alongside the relevant income records. See our freelancer mortgage guide.
Accounts, PAYE earnings or an eligible contract-based calculation may be relevant. Contract gaps, remaining term and umbrella-company deductions can affect the figures. Read about mortgages for contractors.
Some lenders have an assessment route using Construction Industry Scheme payment evidence; others may use accounts-based income. See our CIS mortgage guide.
If more than one description applies, explain the different income sources when you enquire. The label alone does not determine which lender or product is suitable.
Lenders need an evidenced income figure and a view of whether it is sustainable. They may use an average over completed years, the latest year or another method allowed by their criteria. A recent increase, a fall in profit or an unusual expense can lead to further questions.
Turnover is the money your business takes in before expenses. Profit is what remains after the relevant business costs. Personal drawings are money you take out for yourself; taking smaller drawings does not, by itself, increase the business’s profit.
Illustrative example: a sole trader with £100,000 turnover and £60,000 business expenses has £40,000 profit in this simplified example. Taking £30,000 in drawings does not reduce that profit to £10,000. These figures explain the accounting distinction, not a lender’s accepted income or a borrowing offer.
For a partnership, the starting point may be your attributable share of profit. The lender may ask for evidence of how that share is calculated and paid.
Some lenders use salary and dividends. Others can consider salary plus a qualifying share of company profit, subject to ownership and other conditions. These methods can produce different figures, so choosing the right income basis comes before estimating borrowing.
Current-year profit, accumulated retained profits and the company’s bank balance are not interchangeable. Dividends should not be added again to a profit figure that already includes the money used to pay them. Our guide to net profit and director income explores this in more detail.
A contract rate is not automatically the annual income a lender will accept. Its calculation may allow for working weeks, breaks, expenses or deductions. Keep current contracts and payment records available, and explain any change in how you are paid.
Your accountant can help explain the accounts and tax records. Mortgage advice should use accurate figures; changing drawings, omitting expenses or overstating income is not a substitute for meeting the lender’s criteria.
First establish which income the lender can use. It then assesses affordability alongside your regular spending, credit commitments, dependants, mortgage term and the proposed repayments. The property, deposit or equity, and credit history also affect the options.
An income multiple or calculator result is an initial illustration, not a mortgage decision. Two applicants with the same turnover may have different profits, household costs and borrowing options. Read our explanation of calculating mortgage income when self-employed, or discuss your income and mortgage plans.
There is no deposit percentage that applies to every self-employed applicant. Requirements depend on the lender, product, property and circumstances. The deposit or equity available can affect product choice and cost, but a larger deposit does not remove the need to verify income and assess affordability.
Self-employment alone does not mean that a higher interest rate applies. Compare the products for which you qualify, including their fees, charges and total cost over the relevant period, rather than looking only at the advertised rate.
Some lenders consider eligible applicants with one completed year’s accounts or tax evidence. Others require a longer record. A full year of trading, a partial first accounting period and using the latest year of an established business are different situations.
Tell your adviser when trading began, which periods your records cover and how the business is performing now. Our one-year accounts guide explains the questions to consider.
With limited completed evidence, the available routes may be narrower. Previous experience or a current contract can be relevant under some policies, but neither guarantees acceptance. It may be more useful to establish what further evidence is needed before applying.
Moving from sole trader to limited company does not necessarily mean the underlying business is new. Explain what continued and what changed, including ownership, clients and income. Lender treatment varies.
Explain the pattern rather than choosing the highest figure. Seasonal payment timing is different from an annual fall in profit. Recent accounts, current trading records and an explanation of a one-off cost or lost contract may help a lender understand the position; they do not guarantee an adjustment in your favour.
Speak to us if you are unsure whether to apply now or prepare for a later application. An initial discussion can identify the questions that need answering.
The final list depends on your structure, the lender and the income method used. You will not necessarily need every item below, and the required number of years or months can vary.
You may also need identity, address, deposit and existing-mortgage information as the application progresses. Check that accounting periods, tax years and the figures supplied can be reconciled. Tell your adviser about recent amendments or documents that are not yet available.
Use our self-employed proof-of-earnings guide for preparation. GOV.UK explains how to obtain tax calculations and tax year overviews, including the different route when commercial filing software was used.
You can make an initial enquiry without uploading financial documents. Wait for instructions on the appropriate way to provide any sensitive records.
A mortgage may be possible if you are self-employed and hold EU Settlement Scheme settled status. The lender still needs to assess your business income, affordability, credit history and property. Settled status does not replace accounts or tax evidence, and you do not automatically need British citizenship to apply.
Tell your adviser your current status, when your business began and which completed income records are available. The length of time you have lived in the UK is different from the length of time your business has traded. A lender needs an acceptable route for both your circumstances and your income; meeting one set of requirements does not settle the other.
If your business is based abroad or pays you in another currency, mention this early. Do not assume overseas accounts or earnings will be treated in the same way as UK business income.
Our settled-status mortgage guide explains the status checks. If you hold pre-settled status, tell us that specifically. For a work or family visa, see mortgage advice for visa holders.
GOV.UK explains the rights attached to settled and pre-settled status. Other immigration routes can have different work conditions. If you are unsure whether your permission covers your business activity, obtain qualified immigration advice; a mortgage assessment cannot resolve that question.
Use the income-document checklist above to prepare. We can then explain any additional status evidence needed for the proposed lender. Discuss your business income and mortgage plans without sending tax references, identity documents or share codes in your initial message.
Work out your deposit and buying costs alongside your income evidence. Property taxes and home-buying schemes differ across England, Northern Ireland, Scotland and Wales; check the rules for the property and your circumstances before budgeting.
If you are moving home, ask whether your current mortgage can be ported and what fresh assessment is required. Portability does not guarantee approval for the new property or any extra borrowing.
Let your adviser know when your current deal ends and whether early repayment charges apply. Moving to another lender and switching product with your existing lender can involve different checks. Additional borrowing or other changes may affect the process.
Our self-employed remortgage guide explains what to discuss. Compare costs and any change to the term as well as the monthly payment.
You can explore a joint mortgage where one person is employed and the other is self-employed, or where both work for themselves. Each applicant needs evidence relevant to their income. A partner’s salary does not cancel out the need to assess the other applicant’s circumstances, and both borrowers remain responsible for the mortgage debt.
Start with the type, date and current status of any credit issue, or the reason and stage of a decline. Income evidence, credit history and property concerns need different responses. Another application should follow a review of the issue, rather than an assumption that another lender will accept it.
See our self-employed mortgages with bad credit information, or contact us to discuss what happened. Advice cannot guarantee an offer or overturn a lender’s decision.
Count Ready provides mortgage advice by phone and online. We can discuss your home-buying or remortgage plans and how you earn your income, then explain the information needed to investigate suitable options.
Fees: we will explain and agree the fees that apply to your case before undertaking chargeable work. We may also receive commission from the lender. Read our Terms of Business and ask us to clarify the amount, payment stage and refund terms before you proceed.
Count Ready Limited is an appointed representative of Connect IFA Limited. You can check Count Ready’s Financial Services Register record under reference 976111. Mortgage advice is separate from tax or accountancy advice; ask an appropriately qualified professional about changes to your business or remuneration.
Tell us how you work, roughly how long you have traded and whether you are buying, moving or remortgaging. If your income has changed or another lender has declined an application, mention that too. You do not need to put account numbers, tax references or detailed financial records in your initial message.
Request a mortgage discussion or call 01245 934515.
Your home may be repossessed if you do not keep up repayments on your mortgage.
General information for UK customers, checked against the sources below on 7 September 2026. Lender criteria can change; advice depends on your circumstances. Links to other pages open in a new tab.
Further source information: NatWest’s self-employed criteria; Principality’s self-employed criteria; GOV.UK on salary, dividends and company money. Lender pages are professional criteria references, not recommendations or confirmation of Count Ready’s access. Product and geographical restrictions apply.
Requirements vary by lender and assessment route. Some lenders consider eligible applicants with one completed year’s accounts or tax evidence; others require a longer record. Tell your adviser when you began trading and which periods your documents cover. A partial first year is different from a full year of accounts.
Some lenders can consider a qualifying share of company profit alongside salary, while others use salary and dividends. Ownership, business performance and the lender’s criteria matter. Money accumulated in the company is not automatically annual personal income, and dividends must not be counted twice.
There is no single deposit requirement for self-employed applicants. The lender, product, property, income evidence and credit circumstances affect the options. A larger deposit can change the products available, but it does not remove the need for income verification and affordability checks.
Explain which documents are available and why anything is missing. A tax calculation, tax year overview and set of accounts serve different purposes. Some lenders accept alternative combinations of evidence, but this still involves verification. You may need to obtain further records or complete another accounting period before applying.
Mixed employed and self-employed applications can be considered. Each applicant’s income, credit circumstances and commitments need assessment. Prepare the documents relevant to each income source; one applicant’s salary does not automatically resolve concerns about the other person’s finances.
It may be possible. Tell your adviser when your current deal ends, what has changed and whether you need additional borrowing. Switching product with your existing lender and moving to another lender can involve different checks. Compare any charges, fees and change to the mortgage term before deciding.
Yes. Start by explaining when the application was declined and the reason given. Further evidence, a correction or more preparation may be needed before another application makes sense. Count Ready can discuss the circumstances, but advice cannot guarantee acceptance or overturn a lender’s decision.
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