Self-employed and contractor mortgages

Self-employed buyers are told “you need three years of accounts” so often that many never ask. Plenty of lenders accept two, and a few accept one. What matters more is which figure the lender uses.

Which income counts?

A company director might be assessed on salary plus dividends, or on salary plus their share of the company’s net profit. For someone who leaves money in the business, the second can be much higher. A contractor on a day rate is usually assessed on the day rate multiplied out to an annual figure, not on the tax return at all. Finding the lender whose method suits your books is most of our job.

Years that went up and down

If one year was poor, some lenders average two years, some take the lower, and some take the latest if it is higher. We will tell you which approach gets you the best figure, and whether it is worth waiting until your next accounts are filed.

Talk to us before you file

If you are planning to buy in the next year, speak to us before your accountant finalises your accounts. Small choices about salary and dividends can change what you can borrow.