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Home » Services » Mortgage Services » Self Employed Mortgages » Types of Self Employed Income

Types of Self Employed Income

Ciarán Power

Last Updated: February 2nd, 2024 at 6:37 pm

Table Of Contents


For self-employed individuals looking to secure a mortgage, understanding the different types of income that lenders consider is crucial. This page will explore the various forms of self-employed income and how they are evaluated by mortgage lenders, providing insights to help you prepare for your application.

Sole Trader Income

As a sole trader, your income is derived from the profits of your business. Lenders will examine your net profit, typically over the last two or three years, to assess your earning stability. This is often verified through SA302 tax calculation forms and accompanying tax year overviews from HMRC.

Partnership Income

If you’re in a partnership, lenders will look at your share of the profits. It’s important to have clear documentation outlining your percentage share in the partnership and the corresponding income. Similar to sole traders, tax calculations and year overviews will play a significant role in how your income is assessed.

Limited Company Income

For directors of limited companies, lenders consider both salary and dividends as income. Some may also look into retained profits within the company. The assessment can be more complex, requiring detailed accounts prepared by a certified accountant, along with your personal tax returns.

Contractor and Freelancer Income

Contractors and freelancers may have varying income patterns. Lenders typically assess the average income, taking into account the duration of contracts and consistency of work. Invoices, contracts, and bank statements can be used to demonstrate your income history and predict future earnings.


Understanding how different types of self-employed income are assessed is key to a successful mortgage application. Clear and comprehensive financial records are crucial, regardless of the nature of your self-employment. It’s advisable to work with a mortgage advisor who can guide you on how best to present your income to potential lenders, enhancing your chances of a favorable mortgage approval.

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