Running your own business should not hold you back from owning a home. If you are self-employed in Doncaster, Sheffield, or nearby, you can still get a competitive mortgage. You just need to know what lenders look
for, how to present your income clearly, and which steps make the biggest difference. This guide walks you through it in plain English, with local examples and practical tips.
Can you get a mortgage if you just became self‑employed?
Yes, but timing matters. Most lenders want to see a trading history of at least one full year, and many prefer two or three. If you have only just set up, your options are limited. There are still ways forward.
If you moved from employment in the same line of work, some lenders will consider you sooner, especially if you have strong contracts or retainers.
Day-rate contractors in certain sectors can be assessed on a contract rather than tax returns. Evidence like a 6 to 12 month contract, renewal history, and CV helps.
A larger deposit, clean credit, and low personal debt can offset short trading history with a few lenders.
If you are early in your journey, speak to a specialist broker before you file your first tax return. Small choices on how you pay yourself and how you record expenses can change your borrowing power.
How lenders assess self‑employed income
Lenders look for stable, provable income. What figure they use depends on how you trade.
Sole traders and partnerships: lenders typically use your net profit from SA302 or SA100 tax calculations, often the latest year or an average of the last two years.
Limited company directors: lenders usually use your salary plus dividends. Some, often the more flexible ones, can use your share of retained profits and salary if an accountant confirms sustainability.
Contractors: many lenders annualise your day rate. A common method is day rate x 5 x 46 to 48 weeks, then apply affordability checks.
Expect to provide:
SA302s or tax year overviews for the last 2 to 3 years
Full accounts signed by a qualified accountant
Business bank statements, typically 3 to 6 months
Current contracts, invoices, and evidence of future work
ID, proof of address, and deposit source
If your latest year is higher than previous years, some lenders will use the latest figure rather than an average. If income dipped, underwriters will want to understand why and see a recovery trend.
How much deposit do you need?
If you have a solid trading history and clean credit, you may find lenders from 10 percent deposit, and in select situations 5 percent. If you have just one year of accounts or a complex setup, a 15 to 25 percent deposit can
open more doors and better rates. Your deposit is not the only factor. Debt levels, credit conduct, and outgoings all feed the lender’s affordability model.
Is it difficult to get a mortgage if you are self‑employed?
It is not more difficult to be approved in principle. It is more about paperwork and presentation. The key differences are:
Proof, not projection: you must show what you have earned and can sustain, not what you expect to earn.
Consistency: clean, consistent numbers and bank statements help underwriters say yes faster.
Fit to lender: the right lender policy for your income type matters as much as the rate.
With clear documents and the right lender, self‑employed clients often secure terms just as strong as employed applicants.
Which banks are best for self‑employed mortgages?
There is no single best bank. Lender choice depends on your structure, trading length, and income pattern.
If you are a contractor with a strong day rate, lenders that use contract-based assessments can boost affordability.
If you are a director who retains profit in the company, look for lenders willing to consider salary plus retained profit, backed by accountant letters.
If you have one year of accounts, a handful of lenders will consider you with a strong overall profile.
If income is rising, lenders who use the latest year can help. If income is steady, those who average two or three years may suit you.
A whole-of-market broker can match your profile to policy quirks you will not see on comparison sites.
How to get a mortgage as a sole trader
File early and accurately. Do not leave tax returns to the last minute. Lenders ask for SA302s and tax overviews, so timely filings keep your options open.
Keep business and personal spending separate. Clean statements reduce underwriter questions.
Manage expenses wisely. Claiming every allowable expense lowers your tax, but it can also lower your official income. Find a sensible balance with your accountant if a mortgage is on the horizon.
Reduce personal debt. Lower credit card balances and car finance can boost your affordability.
Build a realistic budget. Use a simple calculator to sense check monthly payments before you apply.
Local case studies from Doncaster
A Doncaster electrician moved from employment to sole trader, then limited company after 14 months. With a 15 percent deposit and strong upcoming contracts, we placed him with a lender who accepted his
latest year’s figures and an accountant’s projection. Offer arrived within two weeks of valuation.
A freelance designer with fluctuating income averaged £38,000 over two years, but the latest year was £44,000. We chose a lender that used the latest year. With clear bank statements and no unsecured debt, she
secured a competitive rate at 10 percent deposit.
A husband-and-wife partnership in Rossington had one partner with mild historic credit blips. We matched them to a flexible policy, added a short explanation letter, and negotiated a manual underwrite. They
completed on their family home without delays.
Practical steps to boost approval odds
Save a bit more than the minimum deposit, even 2 to 5 percent extra can widen lender choice.
Keep a cash buffer equal to three months of expenses, it reassures lenders and protects you.
Prepare documents in one pack, ID, proof of address, SA302s, overviews, accounts, statements, and contracts.
Explain any dips or gaps, a short letter with evidence can calm concerns.
Avoid major changes just before applying, like switching business structure or taking new finance.
Work with a broker who understands self‑employed cases and will present your file clearly.
How Burnett Mortgages helps
Self‑employed cases benefit from one to one advice, careful packaging, and lender relationships. At Burnett Mortgages in Doncaster, we gather your documents, sense check affordability, and target lenders whose criteria
fit your income pattern. We also liaise with your accountant to make sure the figures line up with what an underwriter expects. If you prefer local support, you can speak to a dedicated mortgage advisor doncaster for
tailored guidance from first chat to offer.
If you are nearby and looking at mortgages doncaster or comparing mortgages sheffield, we are happy to talk through your options and timing. Every case is different, and a short conversation can stop you overpaying or
applying too soon.
Quick answers to common questions
What figure do lenders use for the self‑employed? Sole traders, net profit from SA302 or SA100. Directors, salary plus dividends, sometimes plus retained profit. Contractors, an annualised day rate.
How much deposit do I need? Often 10 percent with steady accounts, sometimes 5 percent. For one year of accounts or complex income, 15 to 25 percent helps.
Which bank is best? The best lender is the one whose policy matches your income pattern, contract type, and trading length.
Is it difficult? Not if you prepare. It is paperwork heavy, but very doable with the right guidance.
Final thought
You can get a mortgage while self‑employed without the stress. Start with clear accounts, realistic affordability, and a lender that suits your profile. If you want a friendly, local hand, Burnett Mortgages offers personal
support for self‑employed borrowers across Doncaster and Sheffield.
Your home may be repossessed if you do not keep up repayments on your mortg