Being your own boss has plenty of upsides – but when it comes to getting a mortgage, many self-employed people in Lowestoft and across Suffolk worry they’ll be turned away. The good news: self-employed mortgages are absolutely achievable in 2026. You just need to know what lenders want to see.
Here’s how approval really works when your income doesn’t arrive as a tidy monthly payslip.
First, who counts as “self-employed”?
Lenders generally treat you as self-employed if you own 20–25% or more of the business you earn from. That covers:
- Sole traders – income is your net profit.
- Partnerships – your share of the partnership’s net profit.
- Limited company directors – usually salary plus dividends (and increasingly, retained profit with the right lender).
- Contractors and freelancers – often assessed on day rate or annualised contract value.
How you’re structured changes how your income is read – which is the first place a specialist adviser adds value.
How lenders assess self-employed income
Where an employee hands over payslips, you’ll be assessed on your declared figures:
- Sole traders & partnerships: net profit, evidenced by your SA302 tax calculations and tax year overviews.
- Limited company directors: typically salary + dividends drawn. Some lenders will also consider profit retained in the company – valuable if you leave money in the business for tax efficiency.
Most lenders average the last two years; a few work from your latest year if it’s lower, and a small number from your best year. That variation is exactly why the right lender choice matters.
How many years’ accounts do you need?
Two to three years is the norm, but it’s a myth that you can’t buy with less. A growing number of lenders will consider just one year’s accounts for the right applicant – particularly if you have a strong deposit and a clean credit history.
The documents to have ready
- SA302 tax calculations and corresponding tax year overviews (last 2–3 years).
- Full accounts, ideally prepared or signed off by a qualified accountant.
- Personal and business bank statements (usually 3–6 months).
- Proof of deposit, ID and address.
New tax year tip: with the 2025/26 tax year just closed, filing your return early means lenders can see your most recent – and often strongest – figures, rather than relying on older accounts.
What can hold an application back
- Falling profits year on year – lenders may use the lower figure.
- Maximising expenses to reduce your tax bill – great for tax, but it also reduces the income a lender will count.
- A very new business with limited trading history.
- Adverse credit – though there are specialist options if you’ve been told no before.
How to boost your chances of approval
- Put down a larger deposit where you can – it widens your lender choice.
- Keep your credit file clean and reduce short-term debts before applying.
- Use an accountant and keep your books up to date.
- Time your application around your filed accounts.
- Use a broker working with a wide range of lenders who knows which lenders treat your structure favourably.
Want a rough idea of what you could borrow first? Try our mortgage calculator.
How Steel & Co. Financial can help
We arrange mortgages for sole traders, contractors and company directors every week, and we know which lenders read self-employed income most generously. We’ll package your application properly the first time – so your figures work as hard for you as you do.
Talk to our Lowestoft team about your self-employed mortgage options.
This article is for general information only and does not constitute personal financial advice. Please seek tailored advice for your own circumstances.