For many self-employed people, the mortgage world feels full of myths and mixed messages. One lender says you need three years of accounts, another says one is enough. Some say contractors can’t get mortgages; others say the opposite.
Let’s clear up the confusion and clear away the myths once and for all.
Myth 1: You Need 3 Years of Accounts
Not true. Many lenders are comfortable with
two years, and some specialist lenders will accept
one year — especially if you’ve moved from employment to self-employment in the same industry.
Myth 2: Being Self-Employed Makes It ‘Harder’ to Get a Mortgage
It’s not harder — it’s just different.
Lenders simply need clearer evidence of income because you don’t have payslips. With the right preparation and the right lender, approval rates are strong.
Myth 3: Contractors Can’t Get Mortgages
They absolutely can. In fact, some lenders use your
day rate to calculate borrowing, which can increase the amount available compared to salary/dividends alone.
Myth 4: You Must Pay Yourself More to Borrow More
Not always. Some lenders use
retained profit in a limited company — meaning your borrowing potential isn’t limited to what you physically pay yourself.
Myth 5: You Can’t Get a Mortgage With Fluctuating Income
Many self-employed people have seasonal or uneven income. Lenders understand this. What matters more is the overall picture and whether income is stable or trending upward.
Final Thoughts
Don’t let myths stop you from taking the next step. The key is working with a broker who knows which lenders understand self-employed income.
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