Self-Employed Mortgages in 2027
How lenders assess sole traders, directors, contractors and LLP partners, what documents you need and how Making Tax Digital fits in.
- Who counts as self-employed, and who this guide suits
- How lenders assess self-employed income
- Sole traders
- Limited company directors: salary and dividends or net profit
- Contractors and freelancers
- Partners in an LLP
- One year's accounts and shorter histories
- Documents lenders ask for
- Making Tax Digital and your mortgage
- Regulation, tax and what may change in 2027
- Costs and timeline
- Tips and tricks, common mistakes and a checklist
- How OMB can support you
The short version
Self-employed borrowers can access the same mortgages as employed borrowers. The difference is how lenders prove and average your income. This guide explains how each type of business owner is assessed and how to prepare.
- Most lenders want two years of figures, though some accept one year, and a few accept less in the right circumstances.
- Limited company directors may be assessed on salary and dividends, or on a share of net profit, depending on the lender.
- Contractors are often assessed on an annualised day rate, supported by a current contract and a track record.
- Lenders usually rely on finalised figures such as SA302 tax calculations, tax year overviews or accountant prepared accounts.
- Making Tax Digital for Income Tax is being phased in from April 2026, but quarterly updates are not a substitute for finalised figures.
Ask your accountant early
request your tax calculations, tax year overviews and a summary of salary, dividends and retained profit before you start house hunting.
What the full guide covers
- Who counts as self-employed, and who this guide suits
- How lenders assess self-employed income
- Sole traders
- Limited company directors: salary and dividends or net profit
- Contractors and freelancers
- Partners in an LLP
- One year's accounts and shorter histories
- Documents lenders ask for
- Making Tax Digital and your mortgage
- Regulation, tax and what may change in 2027
- Costs and timeline
- Tips and tricks (8), common mistakes (6) and a 10 point checklist
- How OMB can support you, with a fictional worked example
Illustrative example: a director with retained profit
Illustrative example only, not a real client. Sam is a limited company director who takes a small salary and modest dividends, and leaves most profit in the company. Some lenders would have used only salary and dividends, which understated Sam's earnings. After reviewing the company accounts with Sam's accountant, the adviser identified lenders that consider a director's share of net profit, and presented the case clearly with supporting documents. Lender policies and outcomes vary, and every case is different.
Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.
Self-Employed Mortgages in 2027
How lenders assess sole traders, directors, contractors and LLP partners, what documents you need and how Making Tax Digital fits in.
Want to talk it through?
Lender policy on self-employed income varies widely, and the wrong choice can mean borrowing less than you could or being declined. We are a whole of market broker with CeMAP-qualified advisers who work with business owners every day.
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Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. Protection and insurance products are subject to underwriting and the policy terms and conditions. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.