Self employed mortgage in the UK: how it works
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This chapter explains how self-employed mortgage applications are assessed in the UK, focusing on eligibility rather than outcomes. UK lenders use the term “self-employed” broadly, covering sole traders, limited company directors, partners, contractors, and others whose income does not come solely from PAYE employment.
Understanding how lenders define and assess self-employed income is essential, as assumptions based on take-home pay or turnover do not always align with lender criteria. This chapter provides context around how income is interpreted and why additional checks are often required.
This chapter helps readers understand:
- What lenders typically mean by “self-employed”?
- How different income structures are viewed?
- Why income history and consistency matter?
The topics within this chapter explore eligibility criteria, key considerations for self-employed applicants, and how lenders assess different forms of income. Together, they provide the foundation needed before looking at documentation requirements in Chapter 5.