Self-employed mortgage affordability calculator (UK, 2026)
Self-employed mortgages aren't fundamentally different from employed ones — the multiples and rates are the same. The hard part is documenting income that lenders accept. Most need 2 years of accounts; a smaller pool will work with one.
Income and deposit
Loan terms
Max property budget: £0
Monthly repayment: £0
A guide, not a mortgage offer. Actual lending depends on credit history, regular outgoings, contract type and stress-tested affordability — a broker can sharpen this estimate.
Self-employed lending in 2026
The mortgage industry stopped treating self-employment as a red flag a decade ago. Today the major UK lenders accept self-employed applicants with broadly the same products, rates and multiples as employed applicants. The difference is administrative: more documents, more underwriter scrutiny, and a tighter pool of lenders if your situation is unusual.
The headline rules in 2026:
- 2 years of accounts is the standard requirement
- 1 year accepted by a smaller mainstream pool (incl. some high-street names) — usually with a small rate premium or LTV cap
- 3 years preferred by a few specialist lenders (and by lenders looking at borderline applications)
- Same multiples (4.5×) apply — self-employed status doesn't shrink your borrowing capacity, just the lender pool
What income figure do lenders use?
This is the single biggest source of confusion.
Sole traders and partners
Lenders use net profit — the figure on your SA302 after allowable expenses. Not turnover, not what hits your bank account. Most lenders average the last 2 years' net profit, or take the most recent year if it's lower than the average.
Limited-company directors
Two camps:
- Salary + dividends — the dominant lender approach. Whatever you've drawn from the company personally counts; retained profit doesn't. Maximises borrowing if you draw heavily, hurts borrowing if you minimise salary for tax reasons.
- Salary + net profit — used by a growing minority of lenders. The company's net profit (your share of it) counts, regardless of whether you've drawn it. Often lets directors borrow more without restructuring their tax planning.
A whole-of-market broker can match you to the lender using the definition that flatters your situation.
Worked examples
Example 1 — Sole trader, 2 years' SA302s averaging £55,000 net profit. Lender uses £55,000 income. At 4.5× = £247,500 max loan. With £30,000 deposit: £277,500 budget. Same as a £55,000 PAYE earner.
Example 2 — Limited-company director, £12,000 salary + £30,000 dividends + £40,000 retained profit. Salary+dividends lender: income £42,000, max loan £189,000. Salary+net-profit lender: income £82,000, max loan £369,000. Same business — and £180,000 swing depending on lender choice.
Example 3 — Career-changer, 1 year of contracting at £70,000 net profit, prior 5 years PAYE in the same industry. Most one-year-accounts lenders accept this profile because the industry continuity demonstrates earning-power isn't speculative. Likely max loan: £315,000 (4.5× × £70,000) at near-mainstream rates.
Example 4 — IR35-caught contractor, working through an umbrella company. Lenders treat umbrella income as employed PAYE — needs 3–6 months' payslips and SA302 if claiming any expenses. Often easier to evidence than full self-employment.
Deposits and LTV
The lender pool narrows at high LTV for self-employed applicants. Rough 2026 picture:
| LTV | Self-employed lender availability |
|---|---|
| 60% | Universal — full mainstream choice |
| 75% | Universal — full mainstream choice |
| 85% | Universal — full mainstream choice |
| 90% | Most mainstream lenders accept |
| 95% | Smaller pool — specialist self-employed products, slight rate premium |
If you're at 95% LTV, plan to either bridge with a guarantor product, increase deposit by 5%, or use a specialist self-employed lender from day one. Brokers will know the live options.
Where Offrly fits
Self-employed buyers already do more administrative work than most — accounts, SA302s, references, business bank statements. Pricing the home shouldn't add to it. Offrly's AI reads each comparable's photos (garden, condition, layout, finish) and hyperlocal pricing resolves prices to the street rather than the postcode — in about 30 seconds. Free. No email.
Other mortgage calculators: On £30k salary · On £40k · On £50k · On £60k · On £80k · On £100k · Joint income (£60k+£40k) · First-time buyer · Head calculator
Disclaimer: This calculator is for illustration only. Not a mortgage offer and not financial advice. Actual lending depends on your full financial profile, credit history, regular outgoings and the lender's stress-tested affordability model. Self-employed underwriting varies materially between lenders — speak to a whole-of-market broker for a real decision in principle.
FAQ: Self-employed mortgage affordability calculator (UK, 2026)
Can self-employed people get a mortgage in 2026?
Yes — straightforwardly. Most UK mainstream lenders accept self-employed applicants with 2 years of accounts and apply the same income multiples (4.5×) as employed applicants. A smaller pool of lenders accept 1 year of accounts. The mortgage product itself, the rates and the multiples are the same — what differs is documentation. Source: FCA mortgage market guidance and lender criteria as published in 2026.
What income figure do lenders use for sole traders?
Net profit (after expenses, before income tax) — averaged over the last 2 or 3 years' SA302 self-assessment forms. Lenders take the average, not the most recent figure, unless the most recent is lower (in which case they take the most recent as a conservative number).
What about limited-company directors?
Most lenders use salary plus declared dividends as the income figure. A growing minority will work with salary plus the company's net profit (or retained profit) — useful if you draw a low salary for tax reasons but the business throws off significant retained earnings. Specialist brokers know which lenders accept which definition.
Can I get a mortgage with one year of accounts?
Yes — the lender pool is smaller but increasingly mainstream. Most one-year lenders want to see industry experience or prior employed earnings in the same field, so career-changers may face stricter terms. Rates are usually a small premium over standard products.
Will paying myself a low salary hurt my mortgage application?
Yes for lenders that use salary + dividends; less so for lenders that use salary + retained profit. Many small-business owners minimise salary for income-tax efficiency — that strategy can shrink the income figure mortgage lenders see. Plan a 'mortgage year' two years before applying with a higher salary if you're maximising borrowing power.