How much can you borrow on a self-employed mortgage?

by Aaron Strutt

May 15 2025

How much can you borrow on a self-employed mortgage?

The amount you can borrow on a self-employed mortgage depends on several factors, but it's typically similar to what salaried employees can borrow — usually 4 to 5.5 times your annual income.

However, because you're self-employed, some lenders will look at your accounts more closely to ensure it's stable and sustainable.

TSB for Intermediaries has just announced it is increasing the amount self-employed borrowers can secure for a mortgage by increasing the maximum loan-to-income (LTI) multiple to up to 5.5 times income, allowing these applicants to potentially borrow more. Other lenders can also issue up to 5.5 times salary self-employed mortgages.

Aaron Strutt, product director at Trinity Financial, says: "The lenders are keen for business at the moment and they don't mind if the applicant is employed or self-employed. Our brokers have a strong track record of arranging mortgages for self-employed individuals and directors of limited companies."

Key Factors That Determine How Much You Can Borrow:

1. Verified Income
   Most lenders require:
• Two years of accounts  
• Two to three years of SA302s and/or tax year overviews from HMRC
• Some lenders may accept just one year, but this is less common
2. Income Type
   Depending on your structure, lenders assess income differently:
• Sole Traders: Use net profit
• Partnerships: Use your share of net profit
• Limited Company Directors: Use salary + dividends, or salary + net profit (some lenders consider retained profit)
3. Credit Score
   A strong credit history increases borrowing power and access to better rates. It is worth checking your credit reports well in advance of applying for a mortgage to ensure there are no blips or errors that need to be rectified. 
4. Deposit Size
   A larger deposit (20% or more) can improve your chances and the amount you're offered. However, there are lots of 10% deposit mortgages available to the self-employed. 
5. Monthly Outgoings & Debts
   Lenders will check your expenses, including any loans or credit cards, to assess affordability.
6. Lender's Policy
   Each lender has its own rules. Some are more self-employed-friendly than others.
7. Interest-only mortgages 
   There are nearly 50 lenders offering interest-only mortgages, and they tend to be popular with the self-employed to help them manage cash flow. There are also self-employed offset mortgages to help put money aside for tax bills or school fees. 

Example Estimate:

Tips to Improve self-employed mortgage borrowing power:

• Keep business and personal finances separate
• Reduce personal and business debt
• Improve your credit score
• Use an accountant to prepare your books
• Speak to a mortgage broker experienced with self-employed cases

Would you like help estimating what you specifically could borrow? If you share your income and business structure, our experts can give you a tailored estimate.

Call Trinity Financial on 020 7016 0790 to secure a self-employed mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage