Getting a mortgage when you are self-employed can feel more complicated than applying as an employed applicant. That does not mean it is impossible, but it does mean lenders may look more closely at your income, accounts and overall financial position.
If you are looking for a self employed mortgage broker in Brighton, getting advice early can make the process much clearer. Whether you are a sole trader, freelancer, contractor, limited company director or running a growing local business, the right preparation can help you understand your options before applying.
Brighton has a strong community of self-employed professionals, creatives, consultants, tradespeople and business owners. However, income can vary from one year to the next, and not every lender assesses self-employed income in the same way. That is why choosing the right lender can be just as important as finding the right mortgage rate.
Mortgage Pro Sussex provides local, practical mortgage advice for self-employed applicants and can help you understand what lenders may need before you make an application.
For local support, visit the mortgage broker in Brighton page.
Can You Get a Mortgage If You Are Self-Employed?
Yes, self-employed people can get mortgages, but the process can require more evidence than it might for someone in permanent employment.
Lenders mainly want to know that your income is reliable, affordable and sustainable. They will assess how much you earn, how consistent your income is, how long you have been trading and whether the mortgage repayments appear manageable.
Being self-employed does not automatically make you a higher risk, but it can make the application more detailed. This is especially true if your income fluctuates, your business is new, or your accounts have recently changed.
What Counts as Self-Employed?
Different lenders may define self-employment slightly differently, but you may be treated as self-employed if you are:
- a sole trader
- a freelancer
- a contractor
- a partner in a business
- a limited company director
- someone who owns a significant share of a company
- working through your own business rather than as a PAYE employee
Some applicants have both employed and self-employed income. For example, you may have a part-time job and freelance income on the side. Others may pay themselves through salary and dividends from a limited company.
A mortgage broker can help identify how lenders are likely to view your income and which approach may be most suitable.
How Much Can You Borrow If You Are Self-Employed?
How much you can borrow depends on your income, deposit, credit history, regular commitments and the lender’s affordability rules.
For self-employed applicants, lenders may calculate income using:
- your latest year’s income
- an average of two years’ income
- salary and dividends
- share of net profit
- retained profits in the business
- contract income
- a combination of income sources
This is where things can become confusing. One lender may use one method, while another may take a different view. As a result, two lenders could offer very different borrowing figures for the same applicant.
This is one of the main reasons self-employed buyers often benefit from mortgage advice before applying.
What Documents Will You Need?
Most lenders will ask for documents that prove your income and help them understand your business. The exact requirements vary, but you may need:
- SA302 tax calculations
- tax year overviews
- business accounts
- accountant’s references
- bank statements
- business bank statements
- proof of ID and address
- details of existing credit commitments
- deposit evidence
If you are a limited company director, lenders may also ask for company accounts and information about salary, dividends and profits.
It is worth getting these documents organised before you start applying. Missing or inconsistent paperwork can slow the process down.
How Many Years of Accounts Do You Need?
Many lenders prefer to see at least two years of accounts or tax returns. However, this does not mean every applicant needs two full years in every case.
Some lenders may consider applicants with one year of accounts, depending on the strength of the application and the wider circumstances. Others may be more cautious, especially if income has fallen or the business is very new.
If you have only recently become self-employed, it is especially important to get advice before applying. A broker can help you understand which lenders may be more open to your situation.
What If Your Income Has Gone Up or Down?
Self-employed income often changes from year to year. This can affect how lenders assess your application.
If your income has increased, some lenders may still average the last two years, which could reduce the amount you can borrow. Others may place more weight on the latest year if the increase is supported by the business figures.
If your income has decreased, lenders may use the lower figure, as they want to be confident that the mortgage remains affordable.
A broker can help present your circumstances clearly and identify lenders whose criteria may better fit your income pattern.
Limited Company Directors: What Do Lenders Look At?
If you run a limited company, you may pay yourself through a mixture of salary and dividends. Some lenders assess this income in a straightforward way, but others may also consider your share of company profits.
This can be helpful if you keep money within the business rather than taking all profit as personal income. However, not every lender will treat retained profit in the same way.
Lenders may consider:
- director’s salary
- dividends received
- company profit
- retained profit
- percentage shareholding
- trading history
- accountant-prepared accounts
If your income structure is more complex, choosing the right lender becomes particularly important.
Sole Traders and Freelancers
If you are a sole trader or freelancer, lenders will usually look at your declared income through your tax returns. They may average your earnings over the last two years or use the most recent figure, depending on the lender and whether your income is rising or falling.
For freelancers in Brighton’s creative, digital, hospitality, consultancy or trade sectors, income may vary throughout the year. Lenders will want to see that your overall earnings are stable enough to support the mortgage.
Keeping clear records and having up-to-date accounts can make the process easier.
Contractors and Irregular Income
Contractors may be assessed differently depending on how they work. Some lenders may look at your contract rate, while others may assess your accounts or tax returns.
They may consider:
- day rate
- contract length
- time remaining on the contract
- industry experience
- gaps between contracts
- previous contracting history
If you work on contracts, it is important not to assume all lenders will assess your income in the same way.
How to Improve Your Chances Before Applying
There are several steps you can take before making a mortgage application:
1. Get your accounts up to date
Make sure your accounts, tax returns and tax year overviews are accurate and available.
2. Check your credit file
Review your credit reports and correct any errors before applying.
3. Reduce unnecessary commitments
Loans, credit cards and finance agreements can affect affordability.
4. Avoid sudden financial changes
Try not to make major credit applications or unexplained large transactions before applying.
5. Save a clear deposit trail
Lenders may ask where your deposit has come from, so keep records of savings, gifts or transfers.
6. Speak to a broker early
A broker can help you understand which lenders may be more suitable before you apply.
Why Use a Self-Employed Mortgage Broker in Brighton?
A broker can help simplify the mortgage process by matching your circumstances to suitable lenders. This can be especially valuable if your income is complex, your accounts have changed, or you are unsure how much you may be able to borrow.
A mortgage broker can:
- assess your income structure
- explain what documents you need
- compare lenders with suitable criteria
- help avoid unsuitable applications
- support you with paperwork
- liaise with lenders where needed
- help you understand your options clearly
For self-employed applicants, it is often not just about finding a competitive rate. It is about finding a lender that understands your income.
You can learn more about the business and services available from Mortgage Pro Sussex.
Get Self-Employed Mortgage Advice in Brighton
If you are self-employed and planning to buy a property, remortgage or move home, getting advice early can help you feel more prepared.
Mortgage Pro Sussex offers friendly, practical mortgage advice for self-employed people in Brighton and across Sussex. Whether you are a sole trader, limited company director, freelancer or contractor, the right guidance can help you understand your options before applying.
To speak to a local adviser, visit the mortgage broker in Brighton page or contact Mortgage Pro Sussex.
Mortgage advice depends on your personal circumstances, and mortgage approval is not guaranteed. Always seek advice based on your own situation before making financial decisions.
FAQs
Can I get a mortgage if I am self-employed?
Yes, many self-employed people can get mortgages, but lenders usually need evidence of income and trading history.
How many years of accounts do I need for a self-employed mortgage?
Many lenders prefer two years of accounts, but some may consider one year depending on your circumstances.
Do lenders use salary and dividends?
Some lenders use salary and dividends for limited company directors, while others may consider company profits too.
Can I get a mortgage if my self-employed income varies?
Possibly. Lenders will assess income stability, affordability and your overall financial position.
Can Mortgage Pro Sussex help self-employed buyers in Brighton?
Yes. Mortgage Pro Sussex can help self-employed applicants understand lender options, documents and the mortgage process.