Do I need 2 years of accounts to get a self-employed mortgage?

Most lenders want to see two to three years of self-employed accounts or SA302 tax calculations. However, some specialist lenders will consider applications with just one year of trading history, particularly if you have moved into self-employment from a similar employed role. The key is showing consistent and sufficient income. Our advisers know which lenders are most flexible and will match you to the right one.

How do lenders calculate self-employed income?

This depends on your business structure. For sole traders and partnerships, lenders use your net profit. For limited company directors, some lenders use salary plus dividends, while others use salary plus share of net profit. For contractors, specialist lenders may base affordability on your day rate rather than company accounts. Most lenders average income over two to three years, though some will use the most recent year if it is higher.

Can I get a mortgage as a limited company director?

Yes, absolutely. Many limited company directors take a low salary and supplement it with dividends. Standard lenders may only assess your salary, which can result in a low borrowing figure. Specialist lenders will assess your salary plus dividends, and in some cases salary plus retained profits, giving you a far more accurate picture of your borrowing capacity. A specialist broker makes a significant difference here.

What is an Agreement in Principle and do I need one?

An Agreement in Principle (AIP) is a written confirmation from a lender that they would be willing to lend you a specific amount, based on an initial review of your income and a credit check. It is not a guarantee, but it puts you in a much stronger position when making offers. Estate agents and sellers take it as proof you are a serious, mortgage-ready buyer. Your broker will handle this process for you.

Self-Employed Mortgage Broker | Alexander Southwell

‍Fee-Free Service (Mortgages Over £100k)

‍FCA Authorised (No. 1011890)

‍Access to 1,000+ Products

End-to-End Support

5-Star Rated Advisers

About Our Service

Self-Employed? We Know the Right Lenders for You.

Being self-employed has plenty of advantages. You're your own boss, you control your hours, and you keep more of what you earn. But when it comes to getting a mortgage, the goalposts move. High street lenders struggle to assess variable income, complex business structures, and non-standard pay arrangements. That's where we come in.

At Alexander Southwell Mortgages, we specialise in self-employed mortgage applications. We work with a panel of 100+ lenders, including specialist lenders you won't find on the high street, who are experienced in assessing self-employed income across all business structures.

Whether you're a sole trader with two years of SA302s, a limited company director taking salary and dividends, a contractor working day rate, or a CIS subcontractor, there is a mortgage out there for you. We'll make sure you find it.
Our advisers don't just compare rates. They know which lenders are most likely to say yes based on how your income is structured. We'll present your application in the best possible light, with no broker fee on mortgages over £100,000.

Standard mortgage advice doesn't always translate to self-employed circumstances. We take the time to understand your specific situation and match you with the lender most likely to approve your application at the best available rate.

"We will never charge you a penny for our service. We're 100% fee-free mortgage brokers on all mortgages over £100,000."

Helping You Buy Sooner

The Types of Self-Employment We Work With

Self-employment is not one-size-fits-all, and neither is how lenders assess it. We work across every type of self-employment structure and know exactly which lenders work best for each one.

🤝

Sole Traders
and Partnerships

As a sole trader, your mortgage income is based on your net profit, not what you invoice. Lenders typically want two to three years of SA302 tax calculations and supporting accounts. We know which lenders average your last two years, which use only the most recent year, and which are most flexible when income has fluctuated.

Income Basis
Net profit

Trading History
2 years typically

Max LTV
Up to 95%

Partnerships and LLPs are assessed similarly. Lenders look at your share of the net profit. If your accounts clearly show your profit allocation this can be straightforward. We will make sure your documents are structured clearly before submission.

🏗

Limited Company
Directors

If you run a limited company, lenders may treat you as an employee and use only your director's salary. This can seriously understate your actual income. Specialist lenders assess your salary plus dividends, or salary plus net profit retained in the business, giving you access to a much higher borrowing figure.

It is important that your accounts are up to date and clearly show your annual income structure. We work with accountants regularly and can advise on how best to present your financials to maximise what lenders will lend.

🏘

Contractors
and Freelancers

Day rate contractors are often better off with specialist lenders who calculate affordability based on your daily or weekly contract rate, not your company accounts. This can significantly increase what you are able to borrow. Some lenders will even consider applications from contractors with less than 12 months of history, as long as you have experience in a similar field.
‍

Agreement in Principle: What It Means for Self-Employed Buyers

An Agreement in Principle (AIP) is a written confirmation from a lender that they would be willing to lend you a specific amount, based on an initial review of your income and a credit check. For self-employed borrowers, this step is especially valuable as it confirms a lender has assessed your income structure and is prepared to proceed.

Your broker at Alexander Southwell will approach the lender best suited to your income structure. They review your documents, carry out a credit check, and confirm the amount they are willing to lend. You receive an indicative monthly repayment figure based on your self-employed income.

Why it matters: Estate agents and sellers take offers much more seriously when you have an AIP in hand. For self-employed buyers especially, having one demonstrates that a lender has already reviewed your income and is satisfied you can proceed.

Step by Step

How the Self-Employed Mortgage Process Works

Here is what to expect when applying for a mortgage as a self-employed borrower. The process follows the same steps as any application, but with some important differences in how your income is assessed.

Initial Consultation

Your adviser reviews your income type (sole trader, company director or contractor), your accounts, tax returns, and credit profile. They calculate exactly how much you can borrow based on your actual self-employed income and identify which lenders are most likely to approve your application.

Agreement in Principle

Your broker approaches specialist lenders suited to your income structure for an Agreement in Principle. The lender assesses your self-employed income documentation and confirms the lending amount. You are now ready to make offers on properties with confidence.

Property Search & Offer

With your AIP in hand, you make an offer on a property. Estate agents verify your AIP and treat you as a serious, mortgage-ready buyer. Once your offer is accepted, you proceed to the full mortgage application.

Full Mortgage Application

Your broker prepares and submits your full application, packaging your documents (SA302s, accounts, bank statements, contracts) to present your income in the clearest possible light. The lender arranges a property valuation.

Mortgage Offer Issued

Once approved, the lender issues a formal mortgage offer. For self-employed applicants, this typically takes 4 to 8 weeks from full application, depending on the lender and the complexity of your income documentation.

Exchange & Completion

Your solicitor handles exchange of contracts and completion. You receive the keys. We also strongly recommend putting income protection in place at this point, as it is especially important for self-employed borrowers whose income is not guaranteed.

How Long Does It Take?

The timeline from initial advice to completion is typically 10 to 16 weeks for self-employed applicants. Being well prepared with your documents ready upfront is the single biggest factor in keeping things moving smoothly.

What Is a Self-Employed Mortgage?

When you are self-employed, getting a mortgage means demonstrating that your income is stable and sufficient to cover repayments, even without a regular salary from an employer. Lenders want two things above all else: evidence of consistent earnings over time, and confidence that those earnings will continue. Our job is to present your finances in a way that satisfies both requirements.

FAQ

Self-Employed Mortgage FAQs

Fee-free mortgage adviser at Alexander Southwell Mortgages helping a self-employed client

Self-Employed
Mortgages.

Self-Employed? We Know the Right Lenders for You.

The Types of Self-Employment We Work With

How the Self-Employed Mortgage Process Works

What Is a Self-Employed Mortgage?

Sole Traders & Partnerships

Limited Company Directors

Contractors & Freelancers

CIS Workers

Everything You Need to Know

Self-Employed Mortgage FAQs

Self-Employed Mortgages.

Self-Employed? We Know the Right Lenders for You.

The Types of Self-Employment We Work With

How the Self-Employed Mortgage Process Works

What Is a Self-Employed Mortgage?

Sole Traders & Partnerships

Limited Company Directors

Contractors & Freelancers

CIS Workers

Everything You Need to Know

Sole Trader Mortgages

Mortgages for Ltd Company Directors

Contractor Mortgages

CIS Mortgages

Your Credit Score and Self-Employed Mortgages

Ready to Get Your Self-Employed Mortgage?

Speak to one of our mortgage advisers today. We know how to package self-employed applications to give you the best possible chance of approval, with no broker fee on mortgages over £100,000.

Self-Employed Mortgage FAQs

Do I need 2 years of accounts to get a self-employed mortgage?

How do lenders calculate self-employed income?

Can I get a mortgage as a limited company director?

What is an Agreement in Principle and do I need one?

Self-Employed
Mortgages.