Your income, assessed the way you're actually paid.

Years trading required

Most lenders require 2 years of accounts or SA302s. Some specialist lenders accept 1 year where income is strong and the business is established. Fewer than 12 months trading is a significant obstacle with most lenders.

Sole traders

Lenders use net profit as shown on the SA302 or self-assessment tax calculation. Most use a 2-year average; some use the lower year. A narrative explaining one-off profit reductions can make a material difference to the assessment.

Company directors

Mainstream lenders use salary plus dividends only. Specialist lenders add net profit before corporation tax — essential for directors who retain profit in the company rather than drawing it personally.

Day-rate contractors

Some lenders annualise the gross day rate at 46–48 weeks per year, rather than using SA302 income. For higher-rate contractors, this typically produces a meaningfully higher assessed income figure.

Documents required

SA302s and tax year overviews from HMRC (or accountant-certified copies). Company accounts for directors. Some lenders also request bank statements and an accountant's certificate confirming income.

Retained profit

Directors who retain profit in the company to manage tax efficiency need a specialist lender. Mainstream lenders see only what is drawn — retained profit inside the company is invisible to their affordability calculation.

Lender criteria correct at time of review, September 2026. Your home may be repossessed if you do not keep up repayments on your mortgage.

Yes — self-employed people can access the same mortgage market as employed applicants, including the same income multiples and product types. The difference is in how income is evidenced and how lenders calculate it. The key thresholds:

• Sole traders and partnerships: lenders use net profit as shown on the SA302 or self-assessment tax calculation. Most require two years of accounts; some specialist lenders consider one year where income is strong and the business is established.
• Company directors: mainstream lenders use salary plus dividends. Specialist lenders will also consider salary plus net company profit (before corporation tax) — the approach that matters most for directors who retain profit in the business rather than drawing it personally.
• Day-rate contractors: some lenders annualise the gross day rate (typically 46–48 weeks per year) rather than using SA302 income — this often produces a meaningfully higher assessed income for higher-rate contractors.
• Umbrella company workers: assessed on PAYE payslips or contract day rate depending on the lender. Evidence requirements are more straightforward than for limited company directors.
• Variable income and fluctuating profit: most lenders average the last two years. Where year two is lower, some use the lower figure; where income is genuinely recovering, the averaging approach can work in your favour. A clear narrative to the underwriter — particularly for one-off events that reduced profit in a given year — makes a material difference.

See our self-employed mortgage guide and case study: director with retained profits assessed at £620,000.

Company director — £620,000 mortgage on retained-profit income: a company director whose SA302 showed a fraction of his actual earnings — because he retained profit in the business rather than drawing it — had been told by two lenders that his income was insufficient. We placed the case with a specialist lender that assessed salary plus net company profit before corporation tax. The mortgage was offered at the required level, using income that mainstream lenders could not see.