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.
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's trading history. The key is knowing which lenders to approach and how to present your income in the most favourable way.
Typically require 2–3 years of accounts, averaged. If your latest year is your best, you may be under-borrowing.
If you work on a contract basis, some lenders will use your contract rate to calculate affordability rather than your tax returns — which can significantly increase your borrowing power. We know which lenders offer contractor-friendly policies and how to package your application for the best outcome.
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, can 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 significant difference to your borrowing potential. We'll help you find lenders with the most favourable policies.
"Your accountant optimises your tax bill — that often makes you look smaller on paper to a high-street lender. The right specialist sees the full picture."
We know which lenders understand self-employed income and how to package your application so your real earning power is reflected.
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.