Are You Overpaying Because Your Mortgage Lender Doesn’t Understand Self-Employed Income?

As a self-employed professional, your mortgage renewal presents an opportunity to ensure you’re getting the best deal for your circumstances, particularly when it comes to how lenders assess your income structure.

When your mortgage deal ends, loyalty to your existing lender might feel like the path of least resistance. But here’s what most self-employed borrowers don’t realise: the mortgage market has fundamentally changed, and exploring your options could reveal significantly better terms.

How Lenders View Self-Employed Income

Traditional high-street lenders often apply outdated criteria designed for salaried employees. If your income fluctuates, or you’re a limited company director drawing a modest salary and taking dividends (a tax-efficient approach used by many self-employed professionals), these lenders may not fully recognise your true earning capacity.

“Self-employed professionals and limited company directors need specialists who understand their income,” explains Rob Starr MBE, CEO of Seico Group. “Not all lenders have the same level of understanding or acceptance of how self-employed income works. You need to be matched with the right lender who knows how to evaluate it correctly, rather than applying outdated criteria designed for salaried employees.”

Why Expert Guidance Makes All The Difference

A specialist mortgage broker doesn’t just find you a lender, they match you with the right one. They know which lenders are genuinely self-employed friendly and, crucially, how to present your income in the most favourable way to each one. Different lenders assess self-employed income differently, and a specialist broker understands these nuances.

Specialist lenders now offer products specifically designed for self-employed professionals and limited company directors. These lenders understand how to assess your income beyond basic salary figures, recognising retained profits, contract patterns, and the realities of variable income. The result? You could potentially borrow more, secure better rates, or access products better suited to your needs.

Making an Informed Decision

A broker will assess the true costs and benefits of switching. Early repayment charges, arrangement fees, and legal costs need to be weighed against potential savings. They’ll also consider how changes to your income, credit history, or business structure impact your options.

What works for one self-employed professional won’t necessarily suit another. The key is getting expert guidance based on your specific situation, not generic assumptions about self-employed income.

Up to 6 months before your current deal ends, speak to Seico Mortgages, specialists who have been in business over 35 years. Seico fully understand self-employed income and know which lenders will give you the best outcome.

Get in touch to book a call with a broker and explore your options: 01273 778888

Or email: mortgages@seicogroup.com