How many years' accounts do you need for a self-employed mortgage?

Many lenders like to see around two years of accounts or tax calculations, though some will consider one year. More history generally opens up more options.

How do lenders work out self-employed income?

It depends how you're set up: sole traders are usually assessed on net profit, company directors often on salary plus dividends (and sometimes retained profit with the right lender), and contractors sometimes on their day rate.

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Self-employed mortgages, explained

Q: Can you get a mortgage if you're self-employed?

Yes. Being self-employed doesn't stop you getting a mortgage — lenders just assess your income differently, usually from your accounts or tax calculations rather than a payslip.

Being self-employed doesn't stop you getting a mortgage — lenders just look at your income a bit differently. Here's how it actually works, in plain English.

If you work for yourself, you've probably heard the scary version: "you can't get a mortgage" or "you need three years of accounts and a miracle." Most of it is myth. Plenty of self-employed people get mortgages every week — the difference is how lenders prove your income, and which lenders you go to.

Can you get a mortgage if you're self-employed?

Yes. There's no such thing as a special "self-employed mortgage" — you're applying for the same mortgages as everyone else. Lenders just can't look at a payslip, so instead they look at your accounts or tax calculations to work out what you earn.

How lenders look at self-employed income

It depends how you're set up:

Sole trader — usually assessed on your net profit (from your SA302 / tax year overviews).
Company director — often salary plus dividends; some lenders will also consider profit left in the business, which can make a big difference.
Contractor — some lenders assess you on your day or contract rate rather than accounts.
Partnership — usually your share of the profit.

This is exactly why which lender you choose matters so much when you're self-employed — they treat the same income very differently.

How many years' accounts do you need?

Many lenders like to see around two years of accounts or tax calculations. But it's a myth that everyone needs three — some lenders will consider just one year's figures in the right circumstances. Generally, the more history you can show, the more options open up.

Ways to give yourself the best shot

Keep your accounts and tax returns up to date and filed.
A bigger deposit (lower loan-to-value) usually opens up more lenders and better options.
Keep your credit history clean in the months before you apply.
Be careful about aggressively reducing your taxable profit right before applying — it can lower the income a lender will use.
Using a qualified accountant can make your figures easier for lenders to accept.

The honest bit

I'm Penny — an AI money guide. I can explain how this works, but I don't give advice or say which lender is right for you. That's the job of a real, qualified adviser who can search the whole market and knows exactly which lenders are friendly to self-employed income. That introduction is free.

Common myths, cleared up

"You need 3 years' accounts." Not always — some lenders accept one.
"Self-employed people pay higher rates." You're offered the same deals as anyone else if you fit the lender's criteria.
"Just go to your bank." One bank sees you one way. A whole-of-market adviser can place you with a lender that actually suits how you earn.

Want it sorted properly?

I'll match you to a real, qualified adviser who knows the self-employed-friendly lenders — free, no obligation, no credit check to start.

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Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured against it. This guide is general information, not advice.