Self-Employed Mortgage Calculator

How much can I borrow if I’m self-employed?

The amount you could borrow will depend on the lender used. This is because each lender has their own way of assessing and calculating your affordability. A lender will look at your income and expenses, which will help them determine what you can comfortably afford.

When you are self-employed some lenders will look at your latest year’s tax return to help them decide. Although, there are others that will look at the past two to three years and then take an average.

As a general rule the larger your deposit and greater your income, the more you can borrow. However, if you are seen as a lending risk because of bad credit, it could reduce your borrowing capabilities.

To give a rough guide, you could borrow up to 4.5x your annual income. This is very similar to what someone in conventional employment could borrow. If you want to discuss your mortgage options, reach out today.

Do I have to be self-employed for a certain amount of time to get a mortgage?

Lenders usually require you to have been self-employed for at least a year, as they need to look at your accounts during their affordability assessment. If this is the case, they will also assess your employment before you turned self-employed.

Keep in mind that certain lenders may require 2 or 3 years’ worth of accounts.

However, just because you have only been trading for a year doesn’t mean you could borrow less. The income you receive will play a large part in what you could borrow.