Self-employed mortgages.
Lenders lend to the self-employed, company directors and contractors, but they read the income differently. Some use salary alone, some add dividends, and some look at your share of the company’s profit, so the same person can be offered quite different amounts. Recent tax calculations and accounts are the starting point.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Written by Nathan Lawes, independent mortgage broker. Figures sourced and dated. Last reviewed .Read them in this order.
Start with how lenders read your income, then the detail that fits how you are paid.
- 01 · Start hereComplex income, clear path: mortgages for the self-employedHow lenders read self-employed income, and why the lender matters.Read
- 02 · DirectorsDirector salary and dividends: the mortgage calculation lenders useSalary, dividends or profit: the ways lenders assess a director.Read
- 03 · Your accountsSelf-employed mortgages: why your accountant’s advice might cost youWhy the figure that keeps your tax down is the one a lender reads.Read
- 04 · Irregular incomeHow musicians and creative professionals can get a mortgage with irregular incomeRoyalties, session fees and advances, and the paperwork that shows them.Read
- 05 · Foreign incomeForeign income mortgages in the UK: what lenders actually acceptHow much of a foreign-currency income a lender counts.Read
What clients ask first.
MoneyHelper’s free guide to applying for a mortgage explains the steps and the documents lenders ask for. You can check our authorisation on the FCA register.
What paperwork will a lender ask for?
Your recent tax calculations (SA302s) and tax year overviews from HMRC, bank statements, and company accounts if you are a director. How many years a lender wants varies.
How do lenders treat a director’s dividends?
It varies. Some assess salary alone, some salary plus dividends drawn, and some salary plus your share of the company’s net profit, so the same director can be offered quite different amounts.
My accountant keeps my taxable income low. Does that matter?
It can. The figure that keeps your tax down is often the one a lender uses to work out what you can borrow. Talking to us before your accounts are filed shows you your income as a lender would read it; how to structure it for tax is a question for your accountant.
Can irregular income count?
Yes, where it is documented. Royalties, contracts, advances and income from several sources can count with lenders who underwrite by hand, supported by tax calculations, bank statements and often a letter from your accountant.
Where to go next
- ServiceResidential mortgages with LawesHow we work and what it costs.
- CalculatorSee what repayments could look likeTry different amounts and terms. An illustration, not an offer.
- Related guideBuying your first home: a guide in reading orderDeposits, overseas income and getting to an offer.
- Talk it throughA 20-minute call with NathanNo obligation. We’ll look at how lenders would read your income.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.