Remortgage When Self-Employed
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Most buy to let mortgages are not regulated by the Financial Conduct Authority
Remortgage When Self-Employed
David Sharpstone explains how remortgaging works for the self-employed.
Podcast approved by The Openwork Partnership on 01/06/2026.
Is it harder to remortgage if you’re self-employed?
A lot of people think it’s harder to remortgage if you’re self-employed, but it’s not really the case. It’s just assessed differently.
With an employed applicant, lenders just look at payslips, but with a self-employed remortgage in the UK, they’re going to look at your business performance over time.
Plenty of lenders specialise in self-employed remortgages. As long as your income is consistent and your income is provable, you’ve got as good a chance as anybody else.
How long do you have to be self-employed to remortgage? Can you remortgage if you’re newly self-employed?
Most lenders prefer at least two years of accounts or tax returns for a self-employed remortgage.
That said, some lenders will consider you with just one year’s figures – and in some cases, even less. That can be helpful if you’ve recently gone self-employed and stayed in the same line of work – there are possibilities there.
You can remortgage if you’re newly self-employed, but your options may be more limited and it becomes more important to get the right lender.
How does the remortgage process work for the self-employed? Any differences here?
The self-employed remortgage process in the UK is really similar to a standard remortgage.
You review your current deal, compare the mortgage rates and then apply for a new one.
The main difference is in the documents required. Lenders usually ask the self-employed for SA302s and tax year overviews from HMRC – or prepared by your accountant. SA302s are also known as tax calculations.
The usual steps after application are valuation, mortgage offer and finally completion.
Can you remortgage with no proof of income?
There can be misunderstandings about a remortgage versus a product transfer or product switch. A remortgage is going from one lender to another.
When a current mortgage deal ends, you could also choose a new mortgage deal from your existing lender. That’s not a remortgage – that’s a product switch, also known as a product transfer.
If you’re taking a product switch, you don’t need to prove your income. But if you’re looking to move to another mortgage lender and have no proof of income, that’s not possible. All new lenders require income verification.
Once upon a time we had self-certification mortgages, but they just don’t exist anymore. So whether you’re employed or self-employed, you’ll need to show evidence of your income. For self-employed applicants, that means your tax returns, your accounts, your business bank statements, SA302s and tax year overviews.
Can I remortgage if I have bad credit?
Remortgaging with bad credit in the UK is definitely possible. It just depends on your situation. If you’ve had missed payments, defaults or County Court Judgments (CCJs), there are lenders who will still consider you.
They look at how recent the issues were, whether they’ve been satisfied and how your financial situation looks now.
You might have to have a slightly higher interest rate because of your credit situation, perhaps for two years. Then, as the credit issue becomes more historic, you can hopefully access better interest rates in the future.
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Can a self-employed person be declined a remortgage?
Definitely. The self-employed can be declined for a remortgage, and the most common reasons are around income and affordability.
A lender needs to be comfortable that your income is sustainable and the mortgage is affordable. There could be issues if your income is fluctuating or declining, or if the lender doesn’t accept how your income is structured. This can happen with limited company directors.
If you’re not working with a mortgage broker, you may not realise how to avoid or overcome those issues. This is where using the right mortgage lender for your specific situation is really important.
How can I better my chances of a good remortgage as someone who is self-employed?
Preparation is key – it’s vital to get all your ducks in a row. Before you even come to speak to a mortgage broker, make sure your accounts are finalised. Gather your tax calculations and tax year overviews, and if you’re a limited company director have your company accounts ready.
Always make sure your accounts are up to date and your tax returns are filed. If there are any inconsistencies in your income or there’s been a drop, we’ll need clear explanations and evidence to back that up. Mortgage lenders like to see consistency, so a stable or increasing income is always going to help.
It’s also worth keeping your credit file clean. Avoid any new debt before applying for a mortgage, get your documents ready and get advice early on. These are all the things that make a big difference and will put you in the best possible position.
What are the benefits of remortgaging?
Most mortgage deals are tied in for a period of time – often two, three or five years. When that deal comes to an end, most products revert to the lender’s base rate or variable rate, which is normally much higher than you’re used to.
This is called ‘mortgage shock’ – as your monthly payments will suddenly increase. By remortgaging, and doing it up to six months early, you can avoid that mortgage shock. We’ll plan ahead.
Remortgaging can also be used to release equity in your property – for home improvements or to consolidate debts. Always get advice when consolidating debts, as it’s not always the best thing to do. You could use equity for lots of different purposes.
Remortgaging is also a good opportunity to review your mortgage and make sure it fits your goals. You might want to fix your interest rate, reduce the term of the mortgage or just make the monthly payment more affordable. There are lots of benefits in remortgaging.
How can a mortgage broker help me with a self-employed remortgage?
When you’re self-employed, a broker can make a huge difference. We understand which lenders are more flexible, how they will assess self-employed income and how to present your case to the bank. All those things will improve your chances of mortgage success, ultimately to secure a suitable deal.
My big tip is not to leave it to the last minute. Start looking at your remortgage options – around four to six months before your current deal ends. That gives you time to prepare and make the most of all of your options.
Key Takeaways
- Remortgaging when self-employed is assessed differently than for employed applicants, focusing on consistent, provable business performance over time.
- Most lenders prefer at least two years of accounts or tax returns, though some may consider applicants with just one year’s figures, especially if they are newly self-employed but remain in the same line of work.
- If you move to a new mortgage lender, proof of income is required, typically through documents like SA302s and tax year overviews. A product switch with your existing lender, however, does not require income verification.
- Remortgaging is possible even with bad credit (including missed payments or CCJs) through some lenders, though you may initially receive a slightly higher interest rate that can potentially improve over time.
- Preparation is vital; you should finalise accounts and gather documents, and start looking at your remortgage options four to six months before your current deal ends to avoid a sudden increase in monthly payments, known as “mortgage shock.”
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 01/06/2026.
Published 06/2026.
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- Less than 1 year self-employed
- 5% Deposit
- Less than 3 years in the UK
- High day-rate with low net profit
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage