Being self-employed shouldn’t stop you from buying your dream home or remortgaging
At Birmingham Mortgage Hub, we understand that self-employed applicants have access to the same lenders, products, and deals as employed individuals—but the way lenders assess your income is different. Knowing how lenders view self-employed income and preparing your documentation can make all the difference.
What Counts as Self-Employed?
Self-employed status varies by lender, but generally includes:
- Running your own limited company (director/shareholder)
- Sole traders or business partners
- Anyone with 20–25% shareholding in a business (most lenders treat you as self-employed from this point)
Note: Definitions differ between lenders, so what counts as self-employed for one may differ for another.
Why Is It Harder to Get a Mortgage When Self-Employed?
The main challenge is income assessment. Lenders need confidence that your earnings are:
- Reliable
- Sustainable
- Sufficient to meet mortgage payments
They may require:
- 2–3 years of accounts to calculate average income
- Some lenders use only the most recent year if growth is sustainable
- Others may accept 12 months’ trading accounts for newer businesses
Because income can fluctuate, lenders take different approaches to affordability.
What Income Can Be Considered?
Lenders may look at:
- PAYE salaries paid to directors
- Dividends from your company
- Share of net profits (usually excluding tax liabilities)
- Income from UK property or investments
Not all lenders use the same combination of these. Working with a broker who understands these differences can open up more options.
How We Can Help
At Birmingham Mortgage Hub, we specialise in helping self-employed clients:
- Access lenders who are self-employed friendly
- Understand how accounts and dividends are assessed
- Find the most suitable mortgage products for your circumstances
- Navigate lender-specific definitions of self-employment
- Maximise borrowing potential with expert guidance
Documents to Prepare
To explore your options, have these ready:
- 2–3 years of business accounts (if available)
- Tax calculations / SA302 forms from HMRC
- PAYE salary slips (if applicable)
- Dividend statements
Tip: If you plan to apply in the next 1-2 years, inform your accountant early so your accounts are prepared with borrowing in mind.
Why Choose 
?
- We know how lenders treat self-employed income
- We match you with the most appropriate provider
- We provide clear, jargon-free advice
- We work with multiple lenders - even for complex cases
Ready to get started?
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Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495.