Self Employed Mortgages? We have your back!

Being self-employed should not stop you from getting a mortgage, but it does mean the process can look a little different compared to employed applicants.

At Burrows Financial Services, we regularly help self-employed clients in Poulton-le-Fylde and across the Fylde Coast secure mortgages for their first home, next home, or remortgage. This guide explains how mortgages work for self-employed applicants in the UK, what lenders look for, and how you can prepare to improve your chances of approval.

What Counts as Self-Employed for a Mortgage?

You are typically considered self-employed if you own 25% or more of a business, or if your income comes from:

• Sole trader work

• Limited company director salary and dividends

• Partnerships

• Contracting or freelance work

Mortgage lenders assess your income differently depending on your structure, which is why expert mortgage advice is so important.

How Do Mortgage Lenders Assess Self-Employed Income?

Unlike employed applicants with payslips, lenders usually assess self-employed income using:

• SA302s / Tax Calculations

• Tax Year Overviews from HMRC

• Company accounts (for limited companies)

• Accountant references

  
  

Most lenders will look at the last 2 years of income, although some will consider just 1 year of trading in certain situations.

They will typically use:

• An average of the last 2 years’ income, or

• The latest year’s income if it has increased

How Much Can You Borrow If You’re Self-Employed?

The amount you can borrow depends on:

• Your declared income

• Your outgoings and commitments

• Your credit profile

• Your deposit

• The lender’s criteria

Why is a Mortgage Broker important if you're self employed?

Self-employed mortgages are where a good broker really adds value. At Burrows Financial Services, we:

• Access lenders that work well with self-employed clients

• Present your income in the best possible way

• Guide you through documents and requirements

• Help you secure a Decision in Principle quickly

• Support you from application right through to completion

If you’re self-employed in Poulton-le-Fylde, the Fylde Coast, or across Lancashire, we’re here to help you secure the right mortgage for your situation.