Remortgaging When Self-Employed: How It Works

Yes, you can remortgage when you are self-employed, and on the same mainstream deals as employed borrowers. What changes is the evidence: lenders look at your accounts or tax calculations, and which year they use can change how much you can borrow.

That difference is where most self-employed remortgages are won or lost. One lender may use your latest year’s profit, another an average of two years, and a third the lower of the two. On the same figures, the amount you can borrow can vary a lot.

Timing matters too. When your accountant files, and whether you stay with your lender or move, can make a bigger difference than the rate itself.

For the full picture, see our self-employed mortgage guide.

Can you remortgage if you are self-employed?

Yes, and usually without paying more for it. Self-employed borrowers can remortgage on the same deals as employed borrowers. You either switch with your current lender, which often needs no income check, or move to a new lender, which will assess your latest accounts or tax calculations, usually for the last two years.

Should you stay with your lender or move?

When your deal ends you have two main routes.

	Product transfer (same lender)	Remortgage (new lender)
Income checks	Often none for a like-for-like switch with no extra borrowing	Full assessment of your self-employed income
Documents	Usually very few	Accounts or tax calculations, bank statements, ID
Rates	Limited to your lender’s range	Any lender whose criteria suit your income
Borrowing more	Separate further advance, assessed on your income	Possible, subject to affordability and equity
Legal work and valuation	Usually none	Usually needed, often free on remortgage products

A product transfer is often the easier route if your profits have fallen, you have recently changed business structure or your latest accounts are not ready. FCA rules allow lenders to switch existing customers to a new deal without a fresh affordability assessment where you are not borrowing more and are up to date with payments.

A remortgage to a new lender can be cheaper, and it is the only way to reach lenders that read self-employed income more generously than yours does. It does mean a full application. Our product transfer vs remortgage guide compares the two in detail.

Sometimes the right answer is to stay this time and move next time, once your latest accounts show a stronger year.

How do lenders assess self-employed income?

Sole traders and partners

Lenders use your share of the net profit from your tax calculations, not your turnover. Most want two years of figures, and some accept one. Our one-year accounts guide covers that route.

Limited company directors

Most lenders add your salary and dividends from your tax calculations. If you pay yourself a low salary and leave profit in the company for tax reasons, that can understate what the business earns. Some lenders instead use your share of the company’s net profit, which can include retained profits. Our limited company director guide explains the methods.

Contractors and CIS workers

If you work on day-rate contracts, some lenders work out your income from the contract rather than your accounts, typically your day rate times five days times 46 to 48 weeks. See our contractor mortgage guide, or our CIS mortgage guide if you work in construction.

A job and a business together

Many lenders can count both. Expect to show payslips for the employed income and tax calculations for the self-employed part. Our guide to mortgages with complex income covers how lenders combine several sources.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

What documents do you need?

Everyone:

• SA302 tax calculations, or your HMRC tax calculation and matching tax year overview, usually for the last two years
• Personal bank statements, usually the last three months
• Photo ID and proof of address
• Your current mortgage statement

Limited company directors, often also: company accounts prepared by an accountant and business bank statements.

Contractors: your current contract and evidence of previous contracts.

GOV.UK explains how to get your SA302 and tax year overview from your HMRC online account. You cannot print them until 72 hours after you file, and some lenders want to know you printed them yourself. Your tax calculations and tax year overviews must match. A mismatch is one of the most common reasons for delays.

When should you start?

Self-employed borrowers need to start earlier, because the evidence takes longer.

• Around six months before your deal ends: check your balance, end date and any early repayment charge. Ask your accountant when your latest return will be ready.
• Three to six months before: compare your lender’s product transfer with remortgage offers. Many lenders let you secure an offer months ahead. Our remortgage timing guide shows typical booking windows.
• Before your deal ends: make sure the new rate starts on time, so you do not move onto your lender’s standard variable rate.

Timing your accounts. The online filing deadline is 31 January after the tax year ends, as set out in GOV.UK’s Self Assessment deadlines, but you can file any time after 5 April. If your latest year was your strongest, it may be worth filing early and waiting until it is on record before you move lender. If it was weaker, applying before it is filed, or taking a product transfer, may give a better result.

If your self-employed and property income is over £50,000, Making Tax Digital for Income Tax applies from April 2026. Lenders still work from your year-end figures, so keep your digital records tidy and your accountant on schedule.

Can you borrow more when you remortgage?

Often, yes. Self-employed homeowners release equity for home improvements, a deposit on another property or to fund the business. Lenders will ask what the money is for. Some restrict lending for business purposes.

Using your home to borrow for the business means your home is at risk if the business struggles. If you are thinking of borrowing more to clear debts, read our guide to remortgaging for debt consolidation first. Spreading short-term debt over a mortgage term can cost much more in total interest.

What mistakes should you avoid?

1. Applying to your bank by default. Its view of your income may be one of the least generous available.
2. Leaving it too late. If your deal ends before your new mortgage completes, you can move onto a higher variable rate.
3. Not explaining a weaker year. A one-off dip from illness or a lost contract is easier to accept with an accountant’s letter and current trading figures.
4. Mixing business and personal money. Clear separation makes your bank statements easier for an underwriter to follow.
5. Only comparing rates. Arrangement fees, early repayment charges and the deal length change which option is cheapest overall.

If you also have missed payments or defaults, see our self-employed bad credit mortgage guide.

Frequently asked questions

Speak to Option Finance about your self-employed remortgage

We will tell you straight whether staying or moving works better, and which year of figures works in your favour. Then we handle the application.

Book a free initial consultation using the enquiry form below. See our self-employed mortgage advice, our remortgage advice and the full remortgage guide.