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 may assess your net profit or share of partnership profit using accounts or tax calculations. The years required and the way those figures are assessed vary by lender.
Some lenders use salary and dividends; others may use salary plus your share of company net profit. We would check your shareholding, accounts and income structure before identifying suitable lenders.
Some lenders may assess eligible contractors using their contract or day rate. Others use accounts or payslips. Your contract terms, work history and the lender’s criteria all matter.
Use our self-employed mortgage calculator to get a rough estimate based on your income, deposit and monthly commitments.
Some lenders require two or more years of income evidence, while others may consider applicants with one completed year. This isn’t a simple split between high-street and specialist lenders. Time spent trading and the period covered by your completed documents can also differ. We would check both before recommending a lender.
Some lenders average recent income or use the lower of the latest year and an average. Others may consider a different approach, subject to their criteria and evidence of sustainability. We would check your trading history, income structure and documents before identifying suitable lenders. A strong latest year doesn’t guarantee its full income will be accepted.
Read how lenders assess your income to understand which figures may be used.
Check which lenders may suit your income and trading history.
If you work on a contract basis, some lenders may assess your income using your contract rate rather than tax returns. Whether this is available, and what income they accept, depends on their criteria and your work history. We would check your contract and supporting evidence before recommending suitable lenders.
Day rate contractors often earn well but can struggle with traditional income assessments. Some lenders may annualise an eligible day rate as part of their assessment.
× 5 × 48 = £96,000
Illustrative annual income calculation
£400 a day, five days a week for 48 weeks, gives an illustrative annual figure of £96,000. This isn’t a mortgage borrowing figure. Lenders may use different assumptions or require other evidence, so it doesn’t confirm the income they’ll accept.
If you operate through a limited company, some lenders may assess salary plus your share of company net profit, while others mainly use salary and dividends. Accumulated retained earnings aren’t automatically annual mortgage income. We would check the relevant profit period, shareholding and salary treatment, and avoid counting dividends and the same underlying profit twice. Our limited company director mortgage guide explains these approaches.
"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.