Self-Employed & Company Director Mortgages in the UK (2025 Guide)
Getting a Mortgage When You’re Self-Employed or a Company Director If you’re self-employed, a freelancer, or run your own limited company, getting a mortgage can feel like a maze. Many lenders still prefer straightforward PAYE income — but with the right documents and advice, it’s entirely possible to secure a great deal. This guide explains how lenders assess your income, what paperwork you’ll need, and answers the 10 most common questions self-employed buyers ask. How Lenders View Self-Employed Income Mortgage lenders focus on consistent, provable income over time. Depending on how you trade, they’ll assess you differently: Type How Lenders Assess You Key Documents Sole Trader Average of last 2–3 years’ net profit SA302 + Tax Year Overviews Partnership Share of partnership profits Partnership accounts, SA302 Limited Company Director Salary + dividends (some use net profit + salary) Full company accounts & tax returns Freelancer / Contractor Daily or fixed-term rate annualised Contracts + bank statements Tip: Work with an adviser who knows which lenders accept retained profits or one-year accounts. Steps to Getting Approved Prepare accounts early – At least one year’s accounts (ideally two). Check your credit file – Fix issues before applying. Register with an accountant – Lenders prefer professionally prepared figures. Keep tax up to date – Missing filings can delay approval. Work with a broker – They know lenders open to non-standard incomes. Top 10 FAQs for Self-Employed & Company Directors How long do I need to be self-employed to get a mortgage? Most lenders want two full years of accounts, though some specialist lenders accept one year if you have a stable history or work in the same industry. How much can I borrow? Typically 4 to 4.5 times your average annual income. Directors may be assessed on salary + dividends or salary + retained profits depending on lender policy. What if my income dropped recently? Lenders usually take an average of the last 2 years, but if the latest year is lower, they may base affordability on that figure alone. Can I use company profits not drawn as dividends? Yes — some lenders will consider retained profits for limited company directors, especially when you own 50%+ of the shares. I pay myself a small salary – does that affect my chances? It can, but a good broker can find lenders that include dividends or net profits in their calculations to reflect your full income picture. What documents do I need? Usually: Last 2 years’ SA302 forms and Tax Year Overviews Company accounts (if Ltd Co.) Bank statements (3–6 months) Proof of ID and address Can contractors get a mortgage? Yes! Many lenders offer contractor-friendly mortgages. They’ll assess your daily rate (e.g. £300/day = ~£72,000 annual income). Can I get a mortgage with one year’s accounts? Yes — a few specialist lenders accept one year’s trading history if you have strong contracts or prior experience in the same line of work. What about affordability if my company retained profits? Some lenders include undistributed profits as part of your income — especially if you can show steady cashflow and business growth. Do I need a larger deposit? Usually, a 10–15% deposit gives more options, but 5% deals may still be available under certain schemes or lender promotions. Pro Tip: Keep your business and personal finances separate. Lenders prefer clear records and consistent drawings — it shows financial stability and discipline. Final Thoughts Self-employed mortgages require extra preparation, but they’re entirely achievable. With up-to-date accounts, professional support, and the right lender, you can secure competitive rates just like any employed borrower. If you’re a business owner, freelancer, or company director, speak to ProMoney Mortgage Services Ltd, authorised by St. James’s Place, for tailored mortgage advice.