Self-employed: how much can I borrow?
If you are self-employed or a company director, how much you can borrow depends less on your income and more on how a lender reads it. Some average your last two years, some use your latest year, and cautious lenders take the lower of the two. Apply the same income multiple to those different figures and the maximum loan can swing by tens of thousands of pounds. This free tool shows that spread, so you can see why matching to the right lender matters more than for an employed applicant.
See the spread between lenders
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Use the net profit figure from your tax calculations (SA302).
Indicative maximum loan, at about 4.5 times income
| How the lender reads your income | Income used | Indicative borrowing |
|---|
Indicative only, using a 4.5 times multiple as a mid-point (some lenders use around 4 to 5 times). This is before the affordability stress test, your credit profile and your deposit, which can all cap the figure lower. Not a quote and not advice. A regulated broker finds the lender that reads your income the right way.
Why the same income gives different answers
For an employed applicant, most lenders see roughly the same salary. For a self-employed applicant they do not: your figure depends on whether the lender averages two years, uses the latest year, takes net profit or salary and dividends, and how it treats a rising or falling trend. That is why the right match matters so much. If your latest year is your best year, a lender that uses the latest year can offer noticeably more than one that averages. If your trend is down, a cautious lender protects you from over-borrowing. See one year of accounts, limited company directors and complex income.
Common questions
Why do self-employed borrowers get such different offers?
Because lenders read self-employed income differently. Some average your last two years, some use your latest year (which helps if profits are rising), and cautious lenders take the lower of the two. Applying the same income multiple to those different figures produces very different maximum loans, which is exactly what this tool shows. Matching to a lender that reads your income favourably is the whole game.
What counts as my income if I trade through a limited company?
It depends on the lender. Many use your salary plus dividends. A growing number of lenders will instead use your salary plus your share of the company net profit (retained profit), which often gives a higher figure for directors who leave money in the business. Sole traders and partners are usually assessed on net profit. This is why the income basis you pick here matters.
Do I need two years of accounts?
Not always. Two years is the common ask, but some lenders accept one year of accounts or one year of tax calculations, and a few consider a shorter trading history with a strong case. One year usually narrows the field rather than closing it. See one year accounts for detail.
Is this a decision or a quote?
Neither. It is an illustration using an indicative income multiple, to show the spread between lender approaches. Your real maximum depends on the affordability stress test, your credit profile, your deposit and the lender. We introduce you to a regulated broker who can find the lender that reads your figures the right way.
Check it for real
Run your own figures and get matched
The table above shows how the approach changes your maximum. Use this self-employed calculator to run your own accounts, and if you choose, be introduced to a regulated broker who can find the lender that reads your income the right way. Provided by our partner Propillo. Information, not advice, and no obligation.
Want the general picture first? See how much can I borrow and the Lender Criteria Index.
Founder, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 24 July 2026