Yes, you can remortgage when you are self-employed, provided you meet the lender's requirements. The main difference is how your income is assessed and evidenced, rather than the basic purpose of the mortgage. Lenders also consider affordability, your credit history, the property and the amount you want to borrow.
This guide is for homeowners reviewing the mortgage on their own home. It covers sole traders, business partners, company directors and contractors. Buy-to-let borrowing can involve different rules.
How do lenders assess self-employed income?
There is no single calculation used by every lender. How you trade, your ownership of the business and the evidence available affect which income figures can be used.
| How you work | Income considered | What to check |
|---|---|---|
| Sole trader | Your net business profit, rather than total sales or turnover. | The lender may use an average or the latest year's figure, subject to its policy. |
| Business partner | Your share of the partnership's net profit. | The whole partnership's income is not automatically your personal income. |
| Limited company director | Salary and dividends, or salary plus your share of company profit with some lenders. | Shareholding, company performance and the lender's calculation method matter. |
| Contractor or freelancer | Trading income or qualifying contract income, depending on how you work. | Contract terms, trading history and gaps between contracts can affect the assessment. |
Being paid through PAYE does not automatically make a company director an employed applicant for mortgage purposes. Lenders have different ownership thresholds and evidence requirements.
Can retained company profits count?
Some lenders consider your share of company profit alongside salary, rather than only salary and dividends. They will assess the company accounts and sustainability of the income. Money in a business bank account is not automatically personal income, and dividends should not simply be added to profits where that would count the same money twice.
How much could you borrow when remortgaging?
The income a lender accepts is only the starting point. Your household spending, existing debts, dependants, mortgage term and other commitments affect affordability. The borrowing compared with the property value, known as loan-to-value, also affects eligibility and the deals available.
For example, a sole trader with net profits of £45,000 and £55,000 across two years has a £50,000 average. A lender using that average may assess a different income from one accepting the latest £55,000 figure. This illustrates different methods, not a promise that either figure or a particular loan will be accepted.
For a joint application, one applicant can be employed and the other self-employed. Each income is assessed on its own terms, alongside the household's commitments. A partner's salary does not automatically remove the need to evidence your income if it is being used.
What documents do you need for a self-employed remortgage?
The exact combination depends on the lender and business structure. You may be asked for:
- Tax calculations, often called SA302s, and matching tax year overviews.
- Finalised business accounts or an accountant's certificate.
- Recent personal and, where requested, business bank statements.
- Current contracts and evidence of previous work, where relevant.
- Proof of identity and address for each applicant.
- Your current mortgage balance, remaining term and deal end date.
- Details of loans, credit commitments and regular household spending.
Ask which accounting periods and document formats are accepted before gathering everything. A tax calculation, tax year overview and set of company accounts are different documents; one does not necessarily replace another.
Where do you get your SA302 and tax year overview?
If you file through HMRC's online service, you can obtain your tax calculation and tax year overview through your account. If your accountant uses commercial software, ask them for the tax calculation; the matching overview can still be obtained from HMRC. Check that the lender accepts the format provided.
Make sure both documents relate to the same tax year. Send complete, readable copies through the secure upload route provided, rather than sharing your HMRC login details.
Can you remortgage with one year of accounts?
It can be possible, but not with every lender. Many ask for at least two years of income evidence, while some consider one year's trading subject to their criteria. The available borrowing, rates and property requirements can differ.
One completed year of accounts is different from a few months of trading and a forecast. Tell your adviser when you started, which accounts or tax returns are finalised and whether you previously worked in the same field.
If you changed from sole trader to limited company, explain that too. Some lenders may consider continuity of the underlying business, rather than treating it as entirely new. This needs checking against the lender's rules, not assuming.
What if your income has fallen or varies each year?
A lower-income year does not automatically rule out a remortgage, but it can reduce the amount a lender is prepared to offer. Some use the lower of recent income and an average. Others assess the latest figures differently, with further checks if there has been a significant change.
Explain what changed and provide supporting evidence if asked. An accountant's explanation or current trading information may help the lender understand the position, but does not guarantee it will disregard a fall in profit or accept projected income instead of completed accounts.
Being accepted for your existing mortgage does not guarantee a new lender will accept the same borrowing now. If you became self-employed after taking it out, review your options before your current deal ends.
Could you stay with your current lender instead?
A product transfer means choosing a new deal with your existing lender. For an eligible, straightforward rate switch, a fresh affordability assessment or new income evidence may not be required. This can be useful if your trading history is short or your income has changed.
Availability is not guaranteed. The account, requested changes and lender's rules matter. Borrowing more or changing the borrowers is not simply a rate switch and can bring additional checks. The new payments still need to be affordable for you.
Compare staying and switching where both are available. Read the product transfer vs remortgage guide for the wider differences.
Will being self-employed mean a higher interest rate?
Not automatically. Self-employed applicants can qualify for standard mortgage products. However, limited trading history, credit problems or the amount borrowed against the property can restrict the options available. Compare actual offers rather than assuming a particular rate will apply.
Include product fees, legal costs and any early repayment charge when comparing options. The lowest interest rate is not necessarily the lowest overall cost. See the remortgage costs guide.
Prepare before your current deal ends
Check your deal end date and ask your accountant which recent figures are available. Allow time for any additional income questions as well as the usual valuation and legal work. For planning help, read When should I remortgage? and How long does a remortgage take?
Keep your adviser informed about changes to income or borrowing during the application. Discuss tax planning, company pay and business restructuring with your accountant; do not assume changing these solely for a mortgage will improve your position.
Get help with your self-employed remortgage
I can review how you are paid, the evidence available and your current mortgage, then compare suitable options for your circumstances. You do not need to know which lender or income calculation is right before getting in touch.
I do not charge a mortgage broker fee. If I arrange your mortgage, I receive commission from the lender on completion. Lender fees, legal costs and early repayment charges may still apply, and mortgage approval is not guaranteed.
Book a free remortgage review or learn more about my self-employed mortgage advice.
This guide provides general information, not a personal mortgage recommendation or tax advice. Lender criteria, evidence requirements and available products can change.
Your home may be repossessed if you do not keep up repayments on your mortgage.