Self-employed

If you're self-employed and declaring a salary of £12,570, the personal allowance threshold, you're in good company. It's one of the most common and tax-efficient ways for limited company directors and business owners to pay themselves. It's also one of the most misunderstood situations in the mortgage world. Many people in this position assume they simply won't qualify for a mortgage. Their declared salary looks low on paper, their accountant has done exactly the right thing

There's a myth that follows self-employed people around, that getting a mortgage is somehow out of reach. That lenders won't take you seriously. That without a payslip, you don't stand a chance.

If you’re a contractor, freelancer, or consultant, irregular income can feel like a hurdle. The good news? Many lenders assess contractors on real earning potential.

One of the most common myths for the self-employed: you can’t get a mortgage unless you’ve traded for two years. The truth? Some lenders accept just one year’s accounts.

Working for yourself shouldn’t hold you back from homeownership. Here’s what you need to know to strengthen your application and move forward with confidence.

Being self-employed doesn’t mean you’re locked out of the mortgage market. Some lenders now offer mortgages based on just one year’s accounts or your share of profits.