Self-employed mortgage: the Reddit threads worth reading
Self-employed mortgage threads split into three questions: how many years of accounts you need, whether changing structure resets the clock, and whether to pay yourself more. These five cover all three with real figures.
5 threads, each checked live on 2026-08-27. Reddit posts are other people's experiences, not advice; the commentary underneath is ours.
The threads worth reading
1 · r/UKPersonalFinance · 2026-07-26
Mortgage — self employed (1yr)A self-employed hairdresser since March 2025 (employed in the trade since 2017) with one completed tax year at £40,252 net profit, four months into year two, asking whether a mortgage in principle is realistic on one year's figures.
2 · r/HousingUK · 2026-01-08
Mortgaging whilst self employedA 360 excavator operator earning around £50k asking how hard a mortgage will be to get and what price range to look at.
3 · r/HousingUK · 2025-08-14
Just became self employed: how long should I wait to buy?First-time buyers where one partner went self-employed a few months ago in the same industry and has not yet filed a self-assessment — is there any point starting, or how long must they wait?
4 · r/HousingUK · 2026-03-25
Switching from sole trader to Ltd — will this affect 2-year mortgage proof of income?Planning to incorporate the same business and apply for a mortgage in 2027 with one sole-trader year plus one or two Ltd years — will lenders accept a mix as the 2-year history?
5 · r/UKPersonalFinance · 2023-05-18
Mortgage as a company director — better to pay myself more or leave it in the company?A sole director after year one asking whether drawing a higher salary opens more lenders, or whether leaving profit in the company (which some lenders count) is the better route.
What a broker adds
The one-year question has a real answer: a minority of lenders accept 1 year of accounts, most want 2, and several want 3 — and the hairdresser thread is a textbook case for the one-year lenders because of the continuous trade history. The Ltd-versus-sole-trader thread is subtler: lenders generally want continuity of the business, not of the legal wrapper, but each sets its own rule.
On salary versus retained profit: some lenders assess directors on salary plus dividends only, others on salary plus a share of net profit. Paying yourself more to 'look better' can cost real tax for no gain if the lender you end up with counts retained profit anyway — this is precisely the kind of lender-selection decision a broker is for.
Related reading: Self-employed income calculator (per lender) · Self-employed mortgage affordability guide · Which lenders use retained profit?
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