Self-Employed Mortgages

Clear mortgage advice built around the way you earn

Being self-employed does not automatically prevent you from getting a mortgage.

The process can require more explanation and evidence because lenders need to understand how your income is generated, how sustainable it appears and how much of it can reasonably be used when assessing affordability.

You may be:

• a sole trader

• a limited-company director

• a contractor

• a freelancer

• a partner in a business or professional practice

• working through an umbrella company

• combining employment with self-employment

• receiving income from more than one business

Each arrangement can be assessed differently.

At Moveo Mortgages, we’ll take the time to understand:

• how your business operates

• how long you have been trading

• how you receive your income

• your recent financial performance

• the mortgage you need

• your deposit or property equity

• your existing financial commitments

• your plans for the future

We’ll then research suitable mortgage options within the scope of our service and explain what we recommend, why we believe it is suitable and anything you should consider before deciding whether to proceed.

You won’t be expected to understand which accounting figure a lender might use or how different lenders interpret the same set of accounts.

That is what the advice process is for.

Move forward with Moveo.

Helping you make informed mortgage decisions with confidence.

Book your initial consultation
Internal link: Booking page

Find the Information You Need

Use the links below to move directly to the section most relevant to you:

• Can self-employed people get a mortgage?

• Who is treated as self-employed?

• How much could you borrow?

• How lenders assess self-employed income

• Sole-trader mortgages

• Limited-company director mortgages

• Retained profits and business profit

• Partnership and LLP mortgages

• Contractor mortgages

• Freelancer and consultant mortgages

• CIS contractor mortgages

• Employed and self-employed income

• How long must you have been self-employed?

• Mortgages with one year of accounts

• Recently self-employed applicants

• Increasing or fluctuating income

• Declining profits

• What documents might you need?

• SA302 tax calculations and tax year overviews

• How your accountant can help

• Preparing before your mortgage application

• First-time buyers

• Moving home

• Remortgaging

• Previous credit difficulties

• Business borrowing and company commitments

• Deposits from business funds

• The self-employed mortgage process

• Protection for self-employed homeowners

• Why choose Moveo Mortgages?

• Frequently asked questions

Add anchor links where supported by your website platform.

Can Self-Employed People Get a Mortgage?

Yes, potentially.

Self-employed applicants are not automatically restricted to a separate category of mortgage.

Subject to affordability, credit history, property and lender criteria, you may have access to the same types of residential mortgage as an employed applicant.

These can include:

• fixed-rate mortgages

• tracker mortgages

• other variable-rate products

• repayment mortgages

• selected interest-only or part-and-part arrangements where appropriate

• first-time buyer products

• home mover mortgages

• remortgages

The main difference is often how your income is evidenced and assessed.

An employed applicant may provide payslips and a P60.

A self-employed applicant may need to provide documents such as:

• business accounts

• tax calculations

• tax year overviews

• salary and dividend information

• partnership accounts

• contracts

• business bank statements

• an accountant’s reference or certificate

The exact evidence varies between lenders and applicants.

HMRC confirms that a self-employed person can obtain SA302 tax calculations and tax year overviews as evidence of earnings for purposes including a mortgage application.

Self-Employed Does Not Mean Unaffordable

A lender’s concern is not simply whether you work for yourself.

It needs to establish that the income being used is:

• genuine

• evidenced

• sustainable

• sufficient to support the proposed mortgage

• assessed alongside your financial commitments

A successful and established business can support a strong mortgage application.

The challenge is finding a lender whose assessment method reflects the way your income is structured.

Who Is Treated as Self-Employed?

Mortgage lenders may treat you as self-employed where you earn income through your own trade, business or company.

This can include the following arrangements.

Sole Traders

A sole trader owns and operates the business personally.

The business does not have a separate legal identity from the individual.

Mortgage lenders commonly focus on the taxable profit shown through the applicant’s accounts and Self Assessment documents rather than the business turnover alone.

Limited-Company Directors

A limited company is legally separate from its directors and shareholders.

A director may receive income through:

• salary

• dividends

• bonuses

• benefits

• pension contributions

• other payments

Some directors also retain profits within the company rather than withdrawing the maximum amount available.

Lenders differ in how they assess this income.

Partners

A partner may receive a share of the profits of a traditional partnership or limited-liability partnership.

The lender may consider:

• the applicant’s profit share

• partnership accounts

• tax documents

• drawings

• length of time as a partner

• the financial position of the partnership

Contractors

A contractor may operate through:

• a limited company

• an umbrella company

• an agency

• a fixed-term contract

• another arrangement

Depending on the lender and circumstances, income might be assessed using the contract value or through accounts and tax documents.

Freelancers and Consultants

Freelancers and consultants may work for several clients and have income that changes during the year.

The lender may consider:

• trading history

• accounts

• tax returns

• contracts

• invoices

• client concentration

• recent and expected income

Applicants With Mixed Income

You may combine:

• employment and self-employment

• two separate businesses

• company-director income and property income

• a salary and freelance work

• partnership income and employment

Some lenders may consider more than one source where it is acceptable, evidenced and sustainable.

How Much Could You Borrow?

There is no single borrowing multiple for every self-employed applicant.

A lender will assess the income it is prepared to use alongside your household expenditure and financial commitments.

It may consider:

• verified and financial commitments.

It may consider:

• verified self-employed income

• employed income

• loans

• credit-card balances

• car finance

• student-loan deductions

• childcare

• dependants

• maintenance payments

• regular household expenditure

• the proposed mortgage term

• expected retirement

• the deposit or property equity

• the property being purchased

The FCA’s responsible-lending rules require lenders to conduct an affordability assessment for regulated residential mortgages rather than relying only or the applicant’s stated income. citeturn494715search5

Different Lenders Can Reach Different Results

Two lenders can review the same applicant and calculate different usable income.

For example, one lender might primarily use:

• salary and dividends

Another might, where its criteria permit, consider:

• salary and an applicant’s share of company profit

A contractor could be assessed through:

• accounts and dividends

or, with another lender:

• an annualised calculation based on the current contract

The appropriate route depends on:

• your business structure

• trading history

• latest financial figures

• shareholding

• contract arrangements

• the evidence available

• the lender’s current criteria

Maximum Borrowing Versus Comfortable Borrowing

The maximum amount offered by a lender is not necessarily the amount you should borrow.

Self-employed income can sometimes vary, so your personal budget should also account for:

• quieter trading periods

• tax payments

• pension contributions

• business investment

• sick leave

• holidays

• household emergencies

• possible increases in mortgage payments

We’ll discuss the monthly payment as well as the maximum borrowing.

How Lenders Assess Self-Employed Income

There is no universal income assessment used by every mortgage lender.

The calculation depends on:

• the legal structure of the business

• your ownership percentage

• how you take income

• the lender’s policy

• the number of years available

• whether income is stable, increasing or falling

• the mortgage amount and loan-to-value

• wider affordability

Turnover Is Not Normally the Same as Personal Income

Business turnover is the total revenue received before business expenses.

It does not show how much profit the business makes or how much income is available to you personally.

For example:

• turnover: £200,000

• business expenses: £150,000

• profit before tax: £50,000

A lender will not normally treat the full £200,000 turnover as the applicant’s mortgage income.

The relevant figure will depend on the business structure and lender.

Profit, Salary and Dividends

Potential assessment figures can include:

• sole-trader net profit

• partnership profit share

• limited-company salary

• dividends

• a share of company profit

• contract income

The availability of any method cannot be assumed.

We’ll identify lenders whose approach may suit the way your income is genuinely structured.

Sole-Trader Mortgages

A sole trader normally reports business income and expenses through Self Assessment.

Lenders commonly consider the net taxable profit rather than:

• gross sales

• turnover

• the amount transferred from the business account

• drawings taken during the year

What Is Net Profit?

Net profit is broadly the amount remaining after allowable business expenses have been deducted from turnover, subject to the relevant accounting and tax rules.

Your accountant or tax adviser should explain the figures in your accounts and tax return.

What Evidence Might Be Required?

Depending on the lender, evidence could include:

• SA302 tax calculations

• tax year overviews

• finalised accounts

• business bank statements

• personal bank statements

• an accountant’s certificate

• evidence of current trading

Drawings Are Not Necessarily Income

The amount you withdraw from the business account is not automatically the figure a lender will use.

You might withdraw:

• less than the profit

• more than the current-year profit

• money accumulated in a previous year

The lender will normally focus on verified financial results rather than the amount transferred to you personally.

Limited-Company Director Mortgages

A limited-company director may take income through a combination of salary and dividends.

For example:

• salary: £12 example:

• salary: £12,570

• dividends: £35,000

• total withdrawn income: £47,570

Some lenders may use that salary-and-dividend total, subject to evidence and criteria.

However, the company may have generated more profit than the director withdrew.

Why Directors Retain Profit

A director may leave money in the company to:

• fund working capital

• cover future tax

• employ staff

• purchase equipment

• invest in growth

• manage seasonal income

• maintain a cash reserve

This can mean that the personal income shown by salary and dividends does not reflect the complete financial performance of the business.

How Lenders Can Differ

Depending on its criteria, a lender may assess:

• salary and dividends

• salary and a share of profit before corporation tax

• salary and a share of profit after corporation tax

• another defined figure

Not every lender considers retained or underlying business profit.

Where it is considered, the lender may also assess:

• shareholding

• company liquidity

• business liabilities

• recent trading

• whether the profit is sustainable

• the company’s ability to continue paying the proposed income

Shareholding

Some lenders use a shareholding threshold to determine whether a director is treated as employed or self-employed.

The threshold varies.

A director with a relatively small ownership stake may be assessed using employment-style income by one lender but treated as self-employed by another.

Director of More Than One Company

Where you own or direct several companies, the lender may request information about each business.

It may consider:

• whether each company is trading

• income received from each

• business liabilities

• personal guarantees

• connected-company transactions

• whether one business supports another

We’ll discuss the complete structure before researching your mortgage.

Read our Limited-Company Director Mortgages guide.
Internal link: Limited-Company Director Mortgages

Retained Profits and Business Profit

Retained profit is profit kept within a limited company rather than distributed to shareholders.

It may be shown within the company’s reserves or retained earnings, depending on the accounts.

Can Retained Profit Be Used for a Mortgage?

Potentially, but this depends on the lender and the company’s circumstances.

A lender may want to understand:

• your shareholding

• the company’s profit

• corporation-tax liabilities

• cash held by the business

• existing debts

• working-capital requirements

• whether withdrawing more income would weaken the company

• the sustainability of recent performance

A high accounting profit does not automatically mean the full amount is available for personal mortgage affordability.

For example, profits may be tied up in:

• debtors

• stock

• equipment

• future business costs

• tax liabilities

Profit Before or After Corporation Tax

Lenders that assess company profit do not all use the same calculation.

Some may refer to profit before corporation tax, while others may use a figure after tax or apply another adjustment.

We’ll use the lender’s actual criteria rather than presenting one calculation as universal.

Retained Profit Is Not a Reason to Overstate Income

The mortgage application must accurately reflect:

• the accounts

• the company’s position

• the income available

• the evidence requested

We won’t present company funds as personal income where the lender’s criteria do not support that approach.

Partnership and LLP Mortgages

A partner may receive income through a share of the business’s profit.

This could apply to:

• solicitors

• accountants

• doctors

• dentists

• architects

• consultants

• other professional practices

• commercial partnerships

What Might a Lender Consider?

Depending on the partnership and lender, evidence may include:

• partnership accounts

• personal tax calculations

• tax year overviews

• confirmation of profit share

• drawings

• an accountant’s or finance director’s letter

• partnership agreement information

• length of time as a partner

Newly Appointed Partners

Someone recently promoted or admitted to partnership may not yet have a full history of partnership income.

Some lenders may consider:

• previous earnings

• a confirmed partnership package

• expected drawings

• guaranteed profit share

• the applicant’s history with the firm

Other lenders may require a completed period of partnership accounts or tax evidence.

Capital Contributions and Partnership Loans

Some partners borrow money to fund a capital contribution to the firm.

A lender may consider:

• the monthly payment

• whether the borrowing is personal or business-related

• how the loan is serviced

• whether the commitment reduces mortgage payment

• whether the borrowing is personal or business-related

• how the loan affordability

The arrangement should be disclosed accurately.

Contractor Mortgages

Contractors do not all work in the same way.

You might be:

• a limited-company contractor

• working through an umbrella company

• on a fixed-term employment contract

• paid a day rate

• paid an hourly rate

• moving between a series of contracts

• employed inside or outside off-payroll working arrangements

Contract-Based Assessment

Some lenders may calculate income using a contract rate.

A simplified example could involve:

• day rate

• multiplied by an assumed number of working days

• multiplied by a defined number of working weeks

The exact calculation varies.

A lender might also consider:

• time remaining on the contract

• renewal history

• gaps between contracts

• industry experience

• the client or agency

• whether this is the applicant’s first contract

• previous employment in the same field

Accounts-Based Assessment

Where you operate through a limited company, another lender may assess:

• salary and dividends

• company profit

• accounts

• tax documents

The most appropriate method will depend on your circumstances and the lender.

Umbrella-Company Contractors

An umbrella worker may receive:

• basic taxable pay

• holiday pay

• commission

• expenses

• other amounts shown on the payslip

Not- other amounts shown on the payslip

Not every payslip component will necessarily be accepted as mortgage income.

We’ll review how the earnings are presented before researching suitable options.

Read our Contractor Mortgages guide.
Internal link: Contractor Mortgages

Freelancer and Consultant Mortgages

Freelancers and consultants may have:

• several clients

• project-based income

• recurring retainers

• seasonal earnings

• periods between assignments

• income from the UK and overseas

• a combination of employment and freelance work

The lender may consider whether the income appears sustainable.

Potential evidence could include:

• accounts

• Self Assessment documents

• contracts

• invoices

• business bank statements

• client agreements

• evidence of upcoming work

Reliance on One Client

Having one principal client does not automatically prevent a mortgage.

However, the lender may consider:

• the contract

• its duration

• renewal history

• industry experience

• whether you would be able to replace the work

• how the income has been reported

Irregular Monthly Income

A lender will not necessarily assess affordability using the amount received in the most recent month.

It will normally look at an evidenced annual or historical figure under its criteria.

This can be helpful where invoices and payments do not arrive evenly throughout the year.

CIS Contractor be helpful where invoices Mortgages

The Construction Industry Scheme applies to certain payments made to subcontractors in the construction industry.

A CIS subcontractor may have tax deducted from payments before receiving the balance.

Depending on the lender and applicant, income might be assessed using:

• Self Assessment profit

• accounts

• CIS statements or vouchers

• gross income shown through recent evidence

Not every lender uses the same approach.

What Evidence Might Be Needed?

Potential documents include:

• recent CIS statements

• bank statements

• SA302 tax calculations

• tax year overviews

• accounts

• evidence of current work

• details of the contractor or contractors making payments

Sole Trader or Limited Company?

CIS status does not by itself confirm the legal structure of the business.

The lender will still need to understand whether you operate as:

• a sole trader

• a limited company

• another structure

This will influence how income is assessed.

Combining Employed and Self-Employed Income

You may have a salaried job while also operating a business or undertaking freelance work.

A lender may potentially consider both income sources where they are:

• evidenced

• sustainable

• acceptable under its criteria

For example:

• salary from employment

• freelance profit

• dividends from a company

• partnership income

• contract work

Second-Income History

A lender may require evidence that secondary income has been received for a particular period.

It may also consider whether:

• the hours are sustainable

• the work conflicts with the main employment

• the income is likely to continue

• the tax position is up to date

Do Not Count the Same Income Twice

Care must be taken where income flows between connected arrangements.

For example, company turnover should not be counted in addition to the salary and dividends paid from the same underlying profit unless the lender’s specific calculation permits it.

How Long Must You Have Been Self-Employed?

There is no single minimum trading period used by every lender.

Many lenders commonly request a history of two or more completed years, while options may exist with a shorter history in
MoneyHelper’s current mortgage-application guidance notes that a self-employed applicant may be asked for two to three years of accounts and tax evidence, although individual lender requirements vary. citeturn494715search14

Two or More Years of Evidence

A longer history can help a lender assess:

• income stability

• trends

• sustainability

• the effect of seasonal changes

• whether the latest figures are typical

One Year of Evidence

Some lenders may consider one completed year, particularly where:

• the applicant has relevant previous experience

• the business is performing sustainably

• the accounts and tax return are complete

• the wider application is strong

• the lender’s criteria allow it

This cannot be guaranteed.

Less Than One Completed Year

Options may be limited where there is no completed accounting or tax period.

The appropriate preparation may involve:

• building a trading history

• completing the first accounts

• filing the tax return

• improving the deposit

• reviewing the position after additional evidence becomes available

Mortgages With One Year of Accounts

A mortgage with one year of accounts may be possible, subject to the applicant and lender.

The lender may consider:

• your previous occupation

• experience in the same industry

• how the business was established

• the first year’s turnover and profit

• current trading

• contracts or ongoing client relationships

• deposit

• credit history

• requested borrowing

Moving From Employment to Self-Employment

Your previous employment can sometimes provide useful context where the new business operates in the same field.

For example:

• an employed electrician becoming a sole trader

• an employed consultant forming a limited company

• a solicitor becoming a partner

• an employee beginning a contracting role within the same industry

This does not mean the previous salary will automatically be treated as current income.

The lender will apply its own criteria.

First Accounts Must Be Finalised

Draft management figures may help explain current performance, but a lender may still require:

• final accounts

• submitted tax returns

• SA302 calculations

• tax year overviews

The required documents depend on the lender.

Recently Self-Employed Applicants

Recently becoming self-employed can change the mortgage options available, but it does not mean you should avoid seeking advice.

An early conversation can help determine:

• whether any current option appears available

• what evidence is missing

• when the position might become stronger

• how much deposit may be needed

• whether another applicant’s income can support the mortgage

• how your previous experience may be considered

Do Not Restructure Income Solely for a Mortgage

Business and tax decisions should be made with appropriate professional advice.

Do not:

• create artificial income

• issue dividends unsupported by profit

• alter accounts inaccurately

• describe company funds as personal money

• omit business liabilities

Mortgage information must be accurate and supported by evidence.

Increasing or Fluctuating Income

Self-employed income does not always remain the same each year.

Your figures might show:

• steady growth

• one unusually strong year

• seasonal variation

• a temporary reduction

• recovery after investment

• income affected by illness or parental leave

• a change in business structure

Increasing Income

Where profits have increased, lenders may:

• average several years

• use the latest year

• use the lower figure

• request an accountant’s explanation

• review current business performance

The approach varies.

A Large Increase

A significant increase may lead the lender to ask whether it is sustainable.

Evidence could include:

• current contracts

• management accounts

• business bank statements

• information about new clients

• an accountant’s commentary

Seasonal Businesses

The lender will normally consider annual evidence rather than expecting identical income every month.

You should still explain any significant peaks or gaps where requested.

Declining Profits

A recent fall in income does not automatically prevent a mortgage, but it can affect lender confidence and affordability.

A lender may consider:

• the size of the reduction

• whether it is continuing

• the reason for the decline

• current trading

• available cash

• business liabilities

• expected future performance

Why Did Profit Fall?

Possible reasons include:

• a genuine reduction in trading

• a large one-off cost

• investment in equipment or staff

• illness

• maternity or parental leave

• loss of a client

• a change in accounting period

• restructuring

• exceptional market conditions

An explanation may help provide context, but it does not require the lender to disregard the lower figure.

Current-Year Performance

Management accounts and business bank statements may provide additional information, but lender acceptance varies.

We’ll assess whether the recent trend affects the available options before an application is submitted.

What Documents Might You Need?

The precise evidence depends on the applicant, business and lender.

Common Personal Documents

You may be asked for:

• passport or driving licence

• proof of address

• personal bank statements

• details of loans and credit commitments

• evidence of the deposit

• existing mortgage information

• proof of other income

Sole-Trader Documents

These may include:

• SA302 tax calculations

• tax year overviews

• accounts

• business bank statements

• an accountant’s certificate

• evidence of current trading

Limited-Company Director Documents

These may include:

• company accounts

• salary evidence

• dividend vouchers

• SA302 calculations

• tax year overviews

• company bank statements

• management accounts

• accountant’s reference

• Companies House information

Partnership Documents

These may include:

• partnership accounts

• personal tax documents

• evidence of profit share

• confirmation from the partnership

• details of drawings

• partnership-loan information

Contractor Documents

These may include:

• the current contract

• previous contracts

• CV or employment history

• payslips, where applicable

• umbrella-company documents

• company- bank statements

The request for evidence should be proportionate to conducting a proper affordability assessment, although lenders may require additional information where circumstances are complex. citeturn494715search12

SA302 Tax Calculations and Tax Year Overviews

An SA302 is an HMRC tax calculation showing how the tax liability for as calculated.

HMRC allows applicants to obtain SA302 calculations for the previous four years once the relevant tax returns have been submitted. A tax year overview can also be obtained for each year. citeturn494715search2

What Does an SA302 Show?

Depending on the return, it can include:

• income from self-employment

• employment income

• dividends

• propeother taxable income

• allowances

• taxable profit

• tax due

HMRC explains that the SA302 summarises the income on which tax is due, applicable allowances and how the tax liability has been calculated. citeturn494715search7

What Is a Tax Year Overview?

A tax year overview is an HMRC document showing:

• the tax due for the year

• payments made

• amounts outstanding

Lenders may request it alongside the SA302 to help verify that the tax information corresponds with HMRC’s records.

Accountant-Produced Tax Calculations

Where an accountant submits your return using commercial software, the evidence may look different from documents printed directly through an HMRC online account.

The lender may accept:

• an accountant’s tax computation

• an HMRC tax year overview

• other supporting documentation

Requirements vary, so we’ll confirm what the proposed lender needs.

How Your Accountant Can Help

Your accountant can play an important role in preparing the financial information used for a mortgage application.

They may help by:

• finalising accounts

• submitting tax returns

• producing tax calculations

• explaining unusual figures

• providing an accountant’s certificate

• preparing management accounts

• confirming shareholdings

• explaining one-off costs

• providing partnership information

Use an Acceptable Accountant Where Required

Some lenders require accounts or references to be prepared or confirmed by an accountant with particular professional qualifications.

The accepted bodies and requirements differ.

We’ll confirm whether the proposed lender has a specific requirement.

Your Broker Does Not Replace Your Accountant

We can explain how lenders may interpret income for mortgage purposes.

We do not provide:

• tax advice

• accountancy advice

• advice on dividend strategy

• advice on company restructuring

Speak to your accountant or tax adviser before making business or tax decisions.

Coordinate Advice Early

Mortgage affordability and tax efficiency are not always aligned.

For example, reducing declared personal income may reduce the amount some lenders are prepared to use.

That does not mean you should take unnecessary income or pay more tax solely to obtain a mortgage.

It means that mortgage plans should be discussed early enough for you, your accountant and your broker to understand the potential implications of genuine business decisions.

Preparing Before Your Mortgage Application

Good preparation can make the application clearer and reduce avoidable delays.

Keep Up to Date

Submitting returns early can make the latest evidence available sooner.

HMRC notes that a processed tax return can be used as proof of income for purposes including a mortgage application. citeturn494715search28

Keep Business and Personal Finances Clear

Where possible:

• use a separate business account

• label transfers clearly

• retain dividend documentation

• keep evidence of tax payments

• retain contracts and invoices

• avoid unexplained large transfers

Check Your Credit Reports

Review information held by the main UK credit-reference agencies.

Check for:

• incorrect addresses

• unknown accounts

• missed payments

• outdated financial links

• electoral-roll information

Avoid Unnecessary New Borrowing

Taking a-roll information

new loan, credit card or vehicle agreement can affect affordability.

Tell us before making a material credit commitment during the mortgage process.

Retain Evidence of the Deposit

The lender and solicitor may need to establish where the deposit came from.

This can be particularly important where the funds come from:

• business savings

• dividends

• sale of an asset

• a family gift

• overseas funds

• several accounts

First-Time Buyer Mortgages for the Self-Employed

Buying your first home while self-employed can introduce two unfamiliar processes at once:

• purchasing a property

• evidencing business income

We’ll help you understand:

• potential borrowing

• deposit requirements

• Agreements in Principle

• self-employed income evidence

• property costs

• what happens after an offer is accepted

Do Not Wait Until You Find a Property

An early review can establish:

• whether enough trading evidence is available

• what income a lender may use

• whether the deposit is sufficient

• what documents are needed

• whether a particular property budget appears realistic

Read our First-Time Buyer Mortgages guide.
Internal link: First-Time Buyer Mortgages

Moving Home When You Are Self-Employed

Your circumstances may have changed since your existing mortgage was arranged.

You might originally have been employed but now run a business.

Porting the existing mortgage will still normally involve:

• a new application

• affordability checks

• credit assessment

• approval of the next property

Being able to afford the existing mortgage does not guarantee approval for a new or larger loan.

We’ll compare:

• porting the current product

• additional borrowing from the existing lender

• arranging a new mortgage elsewhere

• early repayment charges

• your updated income position

Read our Home Mover Mortgages guide.
Internal link: Home Mover Mortgages

Remortgaging When You Are Self-Employed

You may want to remortgage because:

• your current deal is ending

• you want to review your rate

• your property has increased in value

• you want to borrow more

• your business income has changed

• you need a different mortgage feature

A new lender will normally assess your current self-employed income rather than relying on the income used for the original mortgage.

Product Transfers

If changing lender is difficult or unsuitable, your existing lender may offer a product transfer.

Depending on the lender and change requested, this may involve less underwriting than a full remortgage.

The available product should still be assessed for suitability and cost.

Read our Remortgages guide.
Internal link: Remortgages

Mortgages With Previous Credit Difficulties

Being self-employed and having previous credit problems does not automatically mean a mortgage is unavailable.

The options will depend on:

• the type of credit issue

• the amount

• when it occurred

• whether it has been settled

• the reason it arose

• recent payment history

• business and personal income

• the deposit

• lender criteria

Business Credit and Personal Credit

A limited company usually has its own credit profile.

However, a lender may still consider matters such as:

• personal guarantees

• director loans

• business borrowing

• whether company financial difficulties affect personal income

• your personal credit record

A sole trader’s business and personal finances are more directly connected.

Avoid Repeated Applications

Submitting multiple applications without understanding the criteria can result in additional credit searches and may not improve the outcome.

We’ll review the circumstances before recommending a lender.

Read our Adverse Credit Mortgages guide.
Internal link: Adverse Credit Mortgages

Business Borrowing and Company Commitments

A business may have borrowing such as:

• overdrafts

• credit cards

• asset finance

• vehicle finance

• commercial loans

• government-backed business lending

• director loans

• tax liabilities

• hire-purchase agreements

These commitments do not automatically prevent a residential mortgage.

The lender may want to understand:

• whether the commitment is in the company’s name

• whether you have provided a personal guarantee

• the monthly cost

• whether it affects business profit or cash flow

• whether payments are up to date

• whether the liability could affect personal affordability

Personal Guarantees

A personal guarantee can make you personally responsible for a business debt in specified circumstances.

It should be disclosed where requested.

Director’s Loan Accounts

A director’s loan account can show that:

• the director owes money to the company

• the company owes money to the director

The lender may request an explanation where the balance is material or unusual.

Your accountant should explain the accounting and tax implications.

Using Business Funds for a Deposit

A limited company’s money belongs to the company rather than automatically belonging to its director or shareholders.

If you plan to use business funds towards a personal property deposit, the money may need to be extracted appropriately.

Possible methods could include:

• salary

• dividends

• repayment of money owed to the director

• another lawful arrangement advised by your accountant

Tax and company-law implications may arise.

Do Not Transfer Funds Without Advice

Speak to your accountant before moving substantial money from the company.

The lender and

Speak to your accountant before moving substantial money from the company.

The lender and solicitor may require evidence showing:

• how the money was extracted

• that the payment was lawful

• that relevant tax has been considered

• that the business remains financially viable

• the source of the original funds

Sole-Trader Business Funds

A sole trader’s business is not legally separate from the individual, but the lender and solicitor may still require evidence of:

• the source of the deposit

• business cash flow

• whether withdrawing the money will affect trading

• recent bank-account activity

The Self-Employed Mortgage Process

Every application is different, but the process will commonly follow these stages.

1. Initial Conversation

We’ll discuss:

• your property plans

• business structure

• trading history

• income

• deposit or equity

• existing financial commitments

• expected timescale

• concerns you have

2. Initial Consultation and Fact-Find

If you choose Moveo Mortgages as your broker, we’ll arrange a detailed consultation, normally over Zoom.

We’ll gather the information needed to understand both your personal and business circumstances.

3. Review the Financial Evidence

We’ll review the available documents and establish:

• how income is structured

• which years are available

• whether income is stable, increasing or declining

• whether additional evidence may be required

• which assessment methods could be relevant

4. Agreement in Principle

Where appropriate, we can apply for an Agreement in Principle with a suitable lender.

This is an initial indication rather than a guarantee of a mortgage offer.

5. Mortgage Research and Recommendation

Once the property and borrowing requirement are known, we’ll research suitable options and explain:

• the recommended mortgage

• why we believe it is suitable

• the income used

• interest rate and monthly payment

• product fees

• early repayment charges

• relevant alternatives

• anything else you should consider

6. Full Application

If you are happy to proceed, we’ll prepare and submit the application.

7. Underwriting

The lender may review:

• accounts

• tax evidence

• company information

• bank statements

• contracts

• affordability

• credit history

• property valuation

It may request further information from you, your accountant or us.

8. Mortgage Offer

If the lender is satisfied with the borrower and property, it may issue a formal mortgage offer.

We’ll contact you and explain what normally happens next.

9. Completion

Your solicitor will manage the legal completion of the purchase or remortgage.

We’ll continue supporting you through the mortgage process.

Protecting Your Home and Income

Self-employed applicants may have different workplace benefits from employed applicants.

You may have limited or no:

• employer sick pay

• death-in-service benefit

• long-term disability cover

• employer-funded critical-illness protection

It is worth considering how your mortgage and household commitments would be maintained if illness, injury or death affected your income.

Life Insurance

Life insurance can pay a benefit if the insured person dies during the policy term, subject to the policy’s terms and conditions.

Read our Life Insurance guide.
Internal link: Life Insurance

Critical Illness Cover

Critical illness cover can pay a benefit following diagnosis of a condition covered by the policy, provided the relevant definition and policy conditions are met.

Read our Critical Illness Cover guide.
Internal link: Critical Illness Cover

Income Protection

Income protection can provide a regular benefit if illness or injury prevents the insured person from working, subject to the policy terms.

This can be particularly relevant to a self-employed person without employer sick pay.

The insurer will consider matters including:

• occupation matters including:

• occupation

• income

• health

• waiting period

• chosen benefit

• policy terms

Read our Income Protection guide.
Internal link: Income Protection

Business Protection

Depending on the company and your role, separate business-protection advice might also be relevant.

This can include areas such as:

• key-person protection

• shareholder protection

• relevant life cover

• business-loan protection

The regulatory and tax treatment can differ from personal protection.

Appropriate financial, legal and tax advice may be required.

Protection is not treated as an automatic addition to every mortgage.

Any recommendation will be based on your individual needs and objectives.

Why Choose Moveo Mortgages?

Self-employed mortgage advice should begin with understanding your business rather than trying to fit every applicant into the same calculation.

We Take Time to Understand How You Earn

We’ll discuss:

• business structure

• shareholding

• trading history

• salary and dividends

• profit

• contracts

• partnership arrangements

• other income

We Assess the Evidence Before Recommending a Lender

This can help reduce the risk of approaching a lender whose income criteria do not fit your circumstances.

We Explain Which Income Is Being Used

You’ll understand:

• the figure the lender is assessing

• why it is being used

• which evidence supports it

• how this affects affordability

We Explain the Complete Mortgage Recommendation

We’ll explain:

• what we recommend

• why we believe it is suitable

• the interest rate

• monthly payment

• product fees

• early repayment charges

• relevant alternatives

We Manage the Application

If you choose to proceed, we’ll prepare and submit the application, explain the supporting evidence and respond to lender queries.

We Aim to Reply Within 24 Hours

You should know who to contact and where the application stands.

We Stay in Touch

We’ll aim to contact you before your mortgage deal expires so there is time to review the available options.

Self-Employed Mortgage Advice Across the UK

Moveo Mortgages provides remote mortgage and protection advice through Zoom, telephone and email.

We also have dedicated location information for self-employed buyers and homeowners across Manchester, Cheshire and the surrounding areas.

Explore our location guides:

• Mortgage Broker Manchester
  Internal link: Mortgage Broker Manchester

• Mortgage Broker Cheshire
  Internal link: Mortgage Broker Cheshire

• Mortgage Broker Altrincham
  Internal link: Mortgage Broker Altrincham

• Mortgage Broker Hale
  Internal link: Mortgage Broker Hale

• Mortgage Broker Wilmslow
  Internal link: Mortgage Broker Wilmslow

• Mortgage Broker Didsbury
  Internal link: Mortgage Broker Didsbury

• Mortgage Broker Sale
  Internal link: Mortgage Broker Sale

• Mortgage Broker Knutsford
  Internal link: Mortgage Broker Knutsford

• Mortgage Broker Alderley Edge
  Internal link: Mortgage Broker Alderley Edge

Frequently Asked Questions

Can I get a mortgage if I am self-employed?

Potentially.

The lender will assess your income, affordability, credit history, deposit or equity and the property.

Are self-employed mortgages more expensive?

Not automatically.

The rate and product depend on the applicant, deposit, property and lender criteria rather than self-employment alone.

Do I need a specialist self-employed mortgage?

Not necessarily.

Many mainstream lenders consider self-employed applicants, although their assessment methods differ.

How many years of accounts do I need?

Requirements vary.

Many lenders request two or more years, while some may consider one completed year in suitable circumstances.

Can I get a mortgage with one year of accounts?

Potentially.

The options will depend on your previous experience, financial results, deposit, credit history and wider circumstances.

Can I get a mortgage with less than one year of trading?

Options may be limited.

The position will depend on your business, previous experience, evidence and lender criteria.

Can I obtain an Agreement in Principle if I am self-employed?

Potentially.

The information required varies, and an Agreement in Principle is not a guarantee of a full mortgage offer.

What income does a lender use for a sole trader?

Lenders commonly assess net taxable profit, but the precise calculation and evidence requirements vary.

Is turnover used for a sole-trader mortgage?

Turnover is not normally treated as personal mortgage income because it does not account for business expenses.

What income does a lender use for a company director?

Depending on the lender, it may assess salary and dividends or another permitted calculation involving the applicant’s share of company profit.

Can retained profit be used?

Potentially, with lenders whose criteria permit an assessment of company profit.

The company’s wider financial position will also be relevant.

Does money in my business bank account count as income?

Not automatically.

Business cash may be required for tax, expenses, liabilities and working capital.

Can dividends be used as mortgage income?

Potentially, subject to evidence, affordability and lender criteria.

Can I issue a larger dividend before applying?

Dividends must be lawful and supported by company profitant before making any decision about income extraction.

What is an SA302?

It is an HMRC tax calculation summarising income and tax for a Self Assessment year.

How many years of SA302 documents can I obtain?

HMRC currently allows you to obtain SA302 calculations for the previous four years once the relevant returns have been submitted. citeturn494715search2

What is a tax year overview?

It is an HMRC record showing the tax due and payments recorded for a particular tax year.

Do I need an accountant?

Not every self-employed person is legally required to use an accountant, but some mortgage lenders require accounts or references from an accountant meeting specified professional standards.

Can my accountant provide projected income?

An accountant may provide projections or management figures, but the lender decides whether and how they are considered.

Can I use my latest year’s income?

Potentially.

Some lenders may use the latest year, while others may average income or take a more cautious figure.

What happens if my income has increased?

The lender may request evidence explaining whether the increase appears sustainable.

Its assessment method will vary.

What happens if my profit has fallen?

A declining trend can affect affordability and lender choice.

The cause and current trading position may also be considered.

Can I get a mortgage as a contractor?

Potentially.

Income may be assessed through contracts or accounts, depending on the lender and arrangement.

Can I get a mortgage through an umbrella company?

Potentially.

The lender will review the payslips, contract and income components under its criteria.

Can a CIS contractor get a mortgage?

Potentially.

Some lenders may assess CIS evidence, while others use accounts and tax documents.

Can I combine employed and self-employed income?

Potentially, where both sources are evidenced, sustainable and acceptable to the lender.

Can I use income from two businesses?

Potentially.

The lender may request accounts and evidence for each business.

Can I get a mortgage if I have recently changed from sole trader to limited company?

Potentially.

The lender may consider continuity of the same underlying business, but its evidence requirements will vary.

Can I move home after becoming self-employed?

Potentially.

Porting an existing mortgage still normally requires a new affordability assessment and approval of the new property.

Can I remortgage after becoming self-employed?

Potentially.

A new lender will assess your current income and evidence.

A product transfer with the existing lender may also be considered.

Can I get a mortgage with previous credit problems?

Potentially.

The options will depend on the type, timing and severity of the issues and your wider circumstances.

Does a business loan affect my mortgage?

It may.

The lender may consider the payment, business cash flow, personal guarantees and effect on income.

Can I use money from my limited company as a deposit?

Potentially, once the funds have been extracted lawfully and the tax, company and lender implications have been addressed.

Speak to your accountant before transferring funds.

Will the lender contact my accountant?

It may request an accountant’s certificate, reference or clarification, subject to your authority and the lender’s process.

Do business bank statements matter?

They may be requested to evidence current trading, cash flow or particular transactions.

Should I minimise my income before applying for a mortgage?

Tax and income decisions should be made with appropriate professional advice.

A lower evidenced personal or business income may reduce the amount some lenders are prepared to use.

Can I borrow more because my business turnover is high?

Not necessarily.

Turnover is not the same as profit or sustainable personal income.

Can I get an interest-only mortgage if I am self-employed?

Potentially, where the borrowing is suitable and an acceptable repayment strategy is available.

Do I need income protection?

Income protection is not compulsory.

It may be relevant where illness or injury would affect your ability to work and you have limited employer benefits.

Will Moveo contact me when my deal ends?

We’ll aim to contact you before the mortgage deal expires so there is time to review the available options.

Ready to Discuss Your Mortgage?

You do not need to know which accounting figure a lender might use or which lender is likely to understand your business before speaking to us.

That is what the first conversation is for.

Whether you are:

• a sole trader

• a limited-company director

• a contractor

• a freelancer

• a partner

• newly self-employed

• working with one year of accounts

• receiving increasing or fluctuating income

• buying your first home

• moving house

• remortgaging

• using business funds towards a deposit

• concerned about previous credit difficulties

we’ll take the time to understand how you earn and explain the relevant options.

No unnecessary jargon.

No assumption that every lender assesses self-employed applicants in the same way.

Just clear, personal mortgage advice based on your genuine circumstances.

Move forward with Moveo.

Helping you make informed mortgage decisions with confidence.

Book your initial consultation
Internal link: Booking page

Contact Moveo Mortgages
Internal link: Contact page

SEO Details

Suggested URL

/self-employed-mortgages

Meta Title

Self-Employed Mortgages | Moveo Mortgages

Meta Description

Self-employed mortgage advice for sole traders, directors, contractors and partners. Understand income assessments, accounts, SA302s and your options.

Primary Search Terms

• self-employed mortgages

• self-employed mortgage

• self-employed mortgage broker

• mortgage adviser for self-employed

• mortgage when self-employed

Supporting Search Terms

• mortgage with one year of accounts

• recently self-employed mortgage

• sole trader mortgage

• limited-company director mortgage

• retained profit mortgage

• contractor mortgage

• freelancer mortgage

• partnership mortgage

• CIS mortgage

• self-employed first-time buyer

• self-employed remortgage

• self-employed home mover

• self-employed mortgage with bad credit

• SA302 mortgage

• tax year overview mortgage

• mortgage using company profit

• mortgage using salary and dividends

Regulatory Wording

Replace the placeholders below with the precise wording approved by your principal or network before publication:

[Moveo Mortgages is a trading style of FULL LEGAL ENTITY NAME, an Appointed Representative of PRINCIPAL FIRM NAME, which is authorised and regulated by the Financial Conduct Authority. FCA reference number: NUMBER.]

[Insert the exact network-approved fee disclosure.]

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.