Proving your income
Being self-employed doesn't mean getting a mortgage has to be difficult. We work with lenders who understand non-traditional income and know exactly what documentation you'll need.
How a lender treats your income depends on how you work. The three most common patterns:
Lenders assess income from your SA302s or accounts — usually averaged across the last 2–3 years.
Specialist lenders may use your contract rate rather than tax returns, which can boost affordability.
Day rates can be annualised by select lenders to determine your borrowing capacity.
Use our self-employed mortgage calculator to get a rough estimate based on your income, deposit and monthly commitments.
Most high-street lenders ask for at least two to three years of accounts or tax returns, but there are specialist lenders who will consider just one year of accounts. The key is knowing which lenders to approach and how to present your income in a clear way.
Typically require 2–3 years of accounts, averaged. If your latest year is your best, you may be under-borrowing.
We can help you understand which lenders may be more suitable based on your income, accounts, deposit and wider circumstances.
If you work on a contract basis, some lenders will use your contract rate to calculate affordability rather than your tax returns — which can increase your borrowing power. We know which lenders offer contractor-friendly policies and how to present your application clearly to suitable lenders.
Day rate contractors often earn well but can struggle with traditional income assessments. Certain lenders will annualise your day rate to determine your borrowing capacity:
× 5 × 48 = £96,000
A £400 day rate, worked five days a week across 48 weeks, may be treated as £96,000 of annual income by the right lender.
We'll match you with a lender who understands how you work and what you earn.
If you operate through a limited company and retain profits in the business rather than drawing them as salary or dividends, some lenders will take these retained profits into account. This can make a difference to your borrowing potential. We'll help you find lenders with more favourable policies, including those familiar with the limited company director mortgage.
"Tax-efficient accounts can sometimes make self-employed income look lower on paper. The right lender may take a more rounded view of how your income works."
We help you find lenders who are more familiar with self-employed income and how different income structures can affect affordability.
The documents you need can depend on how you work, how long you've been trading and which lender you apply to.
Common documents may include:
We'll help you understand what is likely to be needed before your application is submitted, so your case can be packaged clearly from the start. For more detail, see the documents you need for a self-employed mortgage.
Speak to one of our expert advisers today. No obligation, no jargon — just honest, expert advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.