4.24m
Self-employed in UK
Source: ONS
67%
Self-employed approval rate
Source: Industry estimates
£42,000
Extra borrowing potential
Source: YHF client data
23%
Of mortgage applications
Source: UK Finance
How do self-employed mortgages differ from employed mortgages?
Self-employed mortgage applications are assessed differently—lenders examine business accounts rather than payslips, using different income calculation methods. Some use latest year's profit, others average 2-3 years. Choosing the right lender and calculation method can mean borrowing £30,000-£100,000 more. Most require 2 years of accounts, though specialists accept just 1 year.
Specialist advice for contractors, directors, and sole traders.
How do self-employed mortgages differ from employed mortgages?
Self-employed mortgage applications are assessed differently—lenders examine your business accounts rather than payslips, and different lenders use different income calculation methods. Some use your latest year's profit, others average 2-3 years, and some allow 'add-backs' for certain expenses. Choosing the right lender and income calculation method can mean borrowing £30,000-£100,000 more. Most lenders require 2 years of accounts, though some specialists accept just 1 year for established businesses with strong trading.
Why Self-Employed Mortgages Differ
Self-employed income isn't calculated like employment income. Different lenders use completely different methods: latest year vs average, add-backs for expenses, dividend treatment, profit extraction strategies.
Choose the right lender and income calculation method, and you could borrow £30,000-£100,000 more. This hub shows you how to maximise your borrowing through strategic lender selection.
You'll Learn
- ✓ Income calculation for 6 business types
- ✓ Lender selection by business structure
- ✓ 1-year vs 2-year accounts strategies
- ✓ CIS contractor documentation
- ✓ Director dividend optimisation
- ✓ Sole trader SA302 strategies
- ✓ Contractor day rate calculations
- ✓ Multiple income stream handling
Day rate, contract length, CIS schemes
Salary + dividends, retained earnings
SA302s, net profit, expense add-backs
Multiple income streams, portfolio workers
Complete Resource Navigation
Full guide covering all business types, income calculation, and lender strategies.
Specialist guidance for your first property purchase as a business owner.
Combined specialist requirements and how to navigate them successfully.
Accessing better rates and releasing equity with changed circumstances.
Related Expert Hubs
Next Steps: Income Optimisation
We'll analyse your specific business structure, review your accounts, identify the best lenders for your situation, and show you exactly how to present your application for maximum borrowing power.