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Being self-employed does not stop you from getting a mortgage. The main difference is how a lender assesses your income and the information needed to support the application.
Jayhawk Capital advises sole traders, company directors, partners and self-employed professionals whose income may not fit a conventional employed structure.
We take the time to understand how you earn, how the business is performing and what you want the mortgage to achieve, giving you an early and honest view of the routes that appear realistic.
Mortgage advice for sole traders, company directors, business owners, partners and professionals with more complex income arrangements.
A self-employed mortgage is not necessarily a different mortgage product. The difference is usually in the way your income is evidenced and assessed.
An employed applicant can often demonstrate income through a salary and payslips. For someone who is self-employed, the position may involve business accounts, tax calculations, dividends, company profit, partnership income or earnings from several sources.
We will take the time to understand:
This helps us establish how different lenders may view your income and which routes appear worth exploring.
The way income is assessed will depend on how your business is structured and the lender’s criteria.
A limited company director may receive income through salary, dividends or a combination of the two.
Many lenders assess affordability using the salary and dividends taken from the business. However, this may not always reflect the full financial position, particularly where profit has been retained within the company rather than withdrawn.
Some lenders can consider the director’s share of company profit or retained profit alongside salary, depending on the ownership structure, accounts and wider circumstances.
The most suitable approach will depend on:
A sole trader operates the business personally rather than through a separate limited company.
Lenders will commonly assess income using the net profit shown within your tax calculations and supporting financial records.
They may look at more than one year to understand whether the income appears consistent and sustainable. Where profits have changed, the lender may want to understand the reason and whether the latest figure is likely to continue.
A partner will usually be assessed using their share of the business profit.
The lender may review tax calculations, partnership accounts and confirmation of the applicant’s ownership share or profit entitlement.
Where income varies between years, the lender will consider the recent figures and the overall direction of the business.
Freelancers may operate as sole traders, through limited companies or using a combination of contracts and assignments.
The income assessment will depend on the legal structure, trading history, available accounts and consistency of work.
Where income comes from several clients or changes from month to month, clear financial records can help demonstrate the wider position.
Contractors can sometimes be assessed using company accounts or tax figures. Other lenders may consider the current contract, day rate, working history and likelihood of continued work.
As Jayhawk Capital has a separate Contractor Mortgages service, applicants working on a contractual basis can also explore advice specific to that income structure.
The documents required will depend on how you trade and the lender being considered.
Company directors may also be asked for details of their shareholding, salary, dividends, company profit and retained funds.
Lenders often prefer an established financial history, but having only one year of accounts does not automatically prevent an application. Some lenders can consider a shorter trading period where the first year is complete and the wider circumstances are strong.
We will explain what is likely to be needed before an application is submitted, helping you obtain the relevant information from your accountant where necessary.
Information commonly requested can include:
For many business owners, the amount withdrawn from the business does not provide a complete picture of their financial position.
A director may keep salary and dividends at a particular level while retaining profit for working capital, future investment or business stability. Another applicant may receive income from several businesses, rental property, investments or consultancy work.
Different lenders can take different views of these circumstances.
Where company profit has been retained rather than distributed, some lenders may be able to consider the applicant’s share of that profit.
The accounts, ownership position and financial strength of the business will all be relevant.
Retained profit should not be assumed to increase borrowing automatically, but it can be important to identify lenders whose assessment better reflects how the company operates.
Historic averages may not always reflect a business that has grown substantially.
Some lenders may consider the most recent financial year or request additional information to understand current performance. This could include management accounts, recent bank statements or confirmation from an accountant.
The latest figure will still need to appear credible and sustainable.
Your income may include a combination of:
The amount accepted from each source will depend on the evidence available and the lender’s criteria.
A larger mortgage can involve a more detailed review of the applicant’s business, income, assets and wider financial position.
For established business owners and high-net-worth clients, the way the overall case is presented can be as important as the income figure shown on a standard application form.
Jayhawk Capital’s experience with more complex income and asset structures allows us to look beyond a single headline number and consider the complete borrowing position.
A long and consistent trading history will generally make the income easier for a lender to assess, but not every self-employed applicant has several years of accounts.
Some lenders can consider one year of accounts or treat a change in business structure as a continuation where the applicant remains in the same line of work. The strength of the first year, previous experience, deposit and wider application will all matter.
A recent decline in income does not automatically mean that a mortgage is unavailable. However, the lender is likely to want an explanation and evidence that the proposed repayments remain affordable.
We will review the history before explaining whether there appears to be a realistic route and what further information may strengthen the application.
You may have:
Jayhawk Capital can help self-employed applicants with a range of residential mortgage requirements.
We can help establish how your income may be assessed, the budget that appears realistic and the information likely to be needed before you begin making offers.
Your current equity, new purchase price, existing mortgage and present business income will need to be considered together.
If your income or company structure has changed since the original mortgage was arranged, the new lender will assess the current position.
A remortgage may be considered when an existing deal is ending, when you want to change the mortgage term or where additional borrowing is required.
The options may depend on your latest accounts, current income and whether staying with the existing lender or moving elsewhere provides the more suitable route.
A larger purchase may involve several income streams, significant company profit, retained earnings or assets that are not reflected by a standard affordability calculator.
The assessment should bring those elements together clearly rather than relying on a single income figure without context.
We begin with the property, amount required, deposit or equity and what you want the mortgage to achieve.
We also establish how you trade, how long the business has operated and how income is taken from it.
We review the available accounts, tax figures, income, commitments and wider financial position.
Where something could restrict the options or needs further explanation, we aim to identify it before approaching a lender.
We consider lenders whose approach to self-employed income appears suited to your circumstances.
We explain the proposed mortgage, costs and principal conditions before preparing the application and supporting documents.
We remain involved while the lender completes its affordability assessment, valuation and underwriting.
You will be kept informed about where the application stands, what is being reviewed, whether anything further is required and what happens next.
Jayhawk Capital was built around speed, accuracy and clear communication. That means understanding the figures properly at the beginning, being frank about what appears achievable and presenting the application in a way that is straightforward for the lender to assess.
Yes. Being self-employed does not stop you from getting a mortgage.
The lender will assess your income differently and will normally require financial records that reflect how you operate and receive income.
The available options will depend on your trading history, income, deposit, credit position, commitments and the property.
Many lenders prefer to see at least two years of financial history, but some can consider applicants with one complete year of accounts.
The options may be more limited with a shorter trading history, and the lender is likely to look closely at your previous experience, current business and overall application.
The amount available will depend on the income the lender accepts, together with your expenditure, credit commitments, deposit, mortgage term and wider circumstances.
For a sole trader, the assessment may be based on net profit. For a company director, it may involve salary and dividends or, with some lenders, a share of company profit.
A standard online calculator may not reflect those differences accurately.
Not necessarily.
The deposit required will depend on the mortgage product, property, credit position, affordability and lender criteria rather than self-employment alone.
A larger deposit may increase the range of products available, but we will need to assess the complete position before explaining what appears realistic.
Self-employed applicants do not automatically pay a higher rate simply because of how they work.
The rate available will depend on the lender, mortgage product, deposit or equity, credit history, property and strength of the application.
Where the circumstances require a specialist lender, the pricing may differ from standard products.
Potentially. Some lenders can consider the applicant’s share of company profit or profit retained within the business rather than relying solely on salary and dividends.
The lender will consider the company accounts, ownership structure, financial strength and whether the income appears sustainable.
Not every lender uses retained profit, so identifying the appropriate criteria is important.
Potentially. Some lenders can consider an applicant with one full year of accounts or completed tax figures.
The first year’s performance, previous experience, deposit, credit position and overall strength of the application will influence the available options.
It can affect how your income is evidenced, but it does not necessarily mean that your previous trading history will be disregarded.
Where you have continued in the same occupation or business, some lenders may treat the change as a continuation.
The new company structure, previous tax records and current financial information will need to be considered together.
The lender will want to understand why the profit has fallen and whether the lower figure is likely to continue.
A temporary reduction may be viewed differently from an ongoing decline, but the lender must still be satisfied that the mortgage is affordable.
Recent accounts, management information or an explanation from your accountant may be required.
Yes. A mortgage application can include one self-employed applicant and one employed applicant.
The lender will assess each person’s income using the evidence appropriate to their circumstances, as well as considering the household’s expenditure and existing commitments.
It can be useful to understand how lenders may assess your income before making significant changes to the way you take money from the business.
Mortgage advice should not replace tax or accountancy advice, and financial decisions should not be made solely to obtain a mortgage.
However, speaking to both your accountant and mortgage adviser early can help you understand how the business and personal financial positions may be presented.
Great customer experience! John was brilliant start to finish and really supported us throughout the whole process. Bridging loans were all new to us so John really took the time to make sure the loan was right for us, along with explaining everything in detail. We had a short timescale and John again made sure this was pushed along at each point in the process
Adviser: John Symons
You may already have found a property, be preparing to move or want to understand your borrowing position before making any decisions.
Tell us how you are self-employed, how long you have been trading, the property value and the amount you may need to borrow.
We will review the initial information and contact you to discuss how your income may be assessed, which routes appear realistic and what documents are likely to be required.
Jayhawk Capital may charge a tailored broker fee of up to 1% of the loan, subject to a minimum fee of £500.
For residential mortgages, the fee is generally payable when the mortgage offer is issued. The amount and payment stage will be confirmed before you decide to proceed.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your self-employed mortgage may also touch on other areas of property finance. Explore related services offered by Jayhawk Capital.
