Remortgaging can help you save money, unlock equity, or move to a better deal. But if you work for yourself, the process may seem confusing at first. You might think that not having a steady payslip puts you at a disadvantage. The truth? It’s possible—you just need to know what lenders expect.
This guide explains how remortgaging when self employed is different. It also covers the documents you’ll need and how to boost your chances of approval. With the right approach and timing, it can go smoothly.
Can you remortgage if you’re self employed?
Yes, you can. Every year, many self employed people successfully remortgage. The main difference is how you prove your income. Instead of using payslips, you’ll need to show trading history and business accounts.
A self employed remortgage depends more on income stability than job title. If your paperwork is clear and you pass the checks, your chances are strong.
How a lender views self employment
Lenders want to know that you can repay the loan. If you’re self employed, they look at your income over the past two or more years. They also check if your earnings are steady or improving.
If you’re a sole trader, lenders will review your personal profits. If you have a limited company, they might consider your salary and dividends. Some also look at retained profits, though this varies by lender.
That’s why remortgaging when self employed involves more checks. But if your business is healthy and your records are in order, it’s still very possible.
Common misconceptions
Some people believe that self employed borrowers pay more in interest. That’s not always true. If your finances are solid, you may still access the good rates for remortgaging self employed.
Another myth is that you need three years of accounts. In fact, many lenders accept two years, and some even consider one, especially if your income is rising.
Also, not all lenders take the same approach. Some offer remortgage deals for the self employed that match those given to people with regular salaries.
What documents do you need to apply?
Paperwork is everything when you’re self employed. Unlike salaried employees, you need to do a bit more to prove how much you earn and how consistent your income is.
Lenders will also use these documents to assess your loan affordability. So it’s worth getting them in order before you apply.
Self assessment tax returns
You’ll usually need to provide your SA302 tax calculations along with tax year overviews for the last two or three years. These show how much income you’ve officially declared to HMRC.
If your returns aren’t up to date, it’s best to submit them before applying. Delays in paperwork can hold things up.
Business accounts or accountant references
If you run a limited company, you’ll also need full business accounts. A chartered or certified accountant should ideally sign these off.
Some lenders may ask your accountant for a reference letter confirming your income and the health of your business.
Bank statements and identification
Expect to share at least three to six months’ worth of bank statements, both business and personal. These help lenders confirm your day-to-day financial activity.
You’ll also need standard ID checks, such as your passport or driving licence, along with proof of address like a recent utility bill.
How to improve your chances of approval
While the remortgage process might be slightly more detailed when you’re self employed, there are several practical steps you can take to make your application stronger. These can help you access better deals and give lenders more confidence in your profile.
Building your credit score
A good credit score makes a big difference. It shows lenders that you manage your finances well. Pay your bills on time, avoid missed payments, and check your credit report regularly for any errors.
If your score is lower than you’d like, small changes can help, such as paying down balances or registering on the electoral roll.
A better score could also open the door to the best rates for remortgaging self employed, helping you save more in the long run.
Lowering your debt to income ratio
Lenders also look at how much you owe compared to how much you earn. If you have high monthly debts, like personal loans, car finance, or credit cards, it could reduce the amount you’re allowed to borrow.
If possible, reduce your debts before applying. This boosts your affordability and shows you can manage your money well, making remortgaging when self employed easier and more successful.
Applying at the right time of year
Timing can play a part in how well your application goes. For example, applying just after submitting your latest tax return gives lenders the most up-to-date picture of your income.
Avoid applying if your recent business figures are weaker due to seasonal work or one-off issues. Waiting a few months to show stronger numbers can sometimes lead to better offers.
How the process differs from a standard application
If you’re self employed, the remortgage steps are mostly the same as for someone in a full-time job. But there are a few key differences to be aware of early on. Knowing them in advance helps you prepare well and avoid delays.
The underwriting process
When a lender looks at your application, they go through a process called underwriting. This is where your documents are checked to assess how reliable you are as a borrower.
For people in employment, this usually involves payslips and a work contract. But in the case of a self employed remortgage, lenders will look more closely at your income records, tax returns, and business accounts. They want to see how stable your earnings are and whether your business is performing well.
This part of the process might take a bit more time, especially if you’ve submitted different types of documents like accountant letters or detailed business summaries.
Lender choice considerations
Lenders don’t all follow the same rules when reviewing self employed applicants. Some may be flexible, especially if your business is new or your income changes month to month. Others might ask for more years of records or a stronger credit score.
Choosing the right lender matters. Some offer remortgage deals for self employed applicants that suit different business types and income levels. The better the fit, the smoother your application is likely to be, and the better the rate you could receive.
Final thoughts
Being self employed doesn’t mean remortgaging is out of reach. It simply follows a slightly different path. Instead of relying on payslips, you’ll need to show clear records of your income and business performance. By keeping your tax returns up to date, managing your accounts properly, and maintaining a good credit score, you can build a strong case for approval. These small steps can make a big difference in helping you access remortgage deals for self employed individuals that match both your needs and your income pattern.
If you want to understand the key terms involved in the process, the remortgage glossary provides clear and simple definitions. Also, speak with a mortgage broker who will give you the most relevant advice based on your situation.