Self-employed mortgage guide
Last reviewed 28 June 2026 · Smarter Mortgage Quotes editorial team
The most common self-employed mortgage mistake is going to a high-street lender that interprets your income as conservatively as possible. The right specialist lender often lends 30–60% more on identical accounts.
Sole traders
Most lenders use the net profit from your SA302. Many average the last 2 years. A growing number accept 1 year if profits are strong.
Limited company directors
Default is salary + dividends. Specialist lenders use salary + retained profit — this often boosts borrowing dramatically because you’ve been keeping dividends low for tax efficiency.
Contractors (day-rate)
Specialist contractor lenders use day-rate × 5 × 46–48 weeks regardless of net profit on accounts. This is huge for IT, engineering and professional contractors.
Umbrella PAYE contractors
Most lenders treat you as employed and use your contract + payslips — easier than full self-employed.
CIS subcontractors
A specialist sub-niche. Some lenders use gross CIS day-rate; others fall back to net profit.
What matters most
Finding a lender whose income model matches how you actually earn — and packaging your application correctly. A self-employed-specialist broker is worth their weight here.