Getting a mortgage with a self employed partner

• Your partner's self-employed status does not directly affect your status with a mortgage lender.
• Self-employed applicants are not disadvantaged when applying for a mortgage relative to employed applicants
• Just like an employed applicant, your self-employed partner will need to prove their income

It is important as a self-employed mortgage applicant to prepare the ground in good time when you expect to apply for a mortgage

Since self-employed income is measured in 12 month periods across tax years from 6th April to 5th April, the key focus should be on getting annual self assessment tax returns organised.

Mortgage lenders will typically ask a self-employed applicant to produced self-assessment tax calculations and tax year overviews covering two tax years (some lenders will work from one year's figures). Because of this it is important for your self-employed partner to submit his or her SA100 tax returns in good order.

Mortgage lenders will want to see self-employed income evidenced over the two tax years ending no earlier than 18 months before the submission of the mortgage application.

Example - mortgage application May 2026:

• Lender requires self-assessment tax calculations for tax year ending 5th April 2025.
• Lender also requires self-assessment tax calculations for tax year ending 5th April 2024.

Example - mortgage application October 2026:

• Lender requires self-assessment tax calculations for tax year ending 5th April 2026.
• Lender also requires self-assessment tax calculations for tax year ending 5th April 2025.

Since the self-employed do not typically submit their self-assessment return until the January after the end of the tax year, it is not uncommon for the self-employed mortgage applicant to be unprepared.

If a mortgage application is needed in October 2026, then a tax return for the tax year ending 5th of April 2025 needs to have already been submitted even if it is not officially due until January 2027

What do lenders consider as self-employed income

Sole Traders

For a sole trader, the lender will look at the self-employed income figure declared on the self-assessment tax return. The lender will typically average out the income over the two most recent tax years. If the income for the most recent tax year is lower than the previous year, they will often work on the most recent years' figures.

Limited Company

For shareholders and directors of limited companies, the mortgage lender will consider PAYE from the business, dividends received, and sometimes retained profit.

Why use a mortgage broker when applying for a mortgage with a self employed partner?

There are a number of key differences in how lenders assess self-employed income. Therefore, to increase your chances of being successful with a mortgage application, it makes sense to work with someone who understands the market and has good experience with the self-employed.

Examples of situations that will need input from a good broker include:

• fluctuating income - there are mortgage lenders in the market that will not average out income.
• new to self-employment - there are mortgage lenders in the market that will work from one year's figures only.
• contractors and locums - some mortgage lenders specialise in being of assistance to contractors and locums
• CIS schemes - some mortgage lenders have favourable terms for construction industry workers
• company directors - some mortgage lenders specialise in providing flexibility for company directors