Self-Employed mortgage brokers in Leicester
5 independent, FCA-authorised advisers covering Leicester and the wider East Midlands area who handle self-employed mortgage cases. Contact them directly — we never sell your details.
Aston and Co Financial Services
Leicester
Bradgate Financial Solutions Ltd
Leicester
Mortgages by Anna
Leicester
Omar Daud - Mortgage & Protection Advisor - Leicester
Leicester
The Mortgages Centre
Leicester
Self-Employed mortgages in Leicester: what to know
Self-employed applicants are not treated worse than employees, but they are assessed differently. Lenders want to see a track record — usually two years of accounts or tax calculations, occasionally one — and they differ substantially in what income they will actually count. Sole traders, company directors and contractors are each assessed on a different basis. For self-employed borrowers in Leicester, choosing the right lender is often the difference between a comfortable approval and a decline.
- Sole traders are generally assessed on net profit; company directors on salary plus dividends, though some lenders will use salary plus retained profit, which can be far more generous.
- Day-rate contractors are often assessed on an annualised day rate rather than accounts, which frequently produces a much higher borrowing figure.
- Most lenders average the last two years, but some use the most recent year alone. If your income is rising, that difference is significant.
- Aggressive expense claims reduce declared profit and therefore borrowing power. It is worth understanding that trade-off with your accountant well before you apply.
What matters locally in Leicester
Clarendon Park and Stoneygate are the established higher-value districts, with period terraces and villas and a strong professional buyer base. Belgrave, Highfields and Evington are dense terraced areas with a substantial owner-occupier and landlord mix. Aylestone, Knighton and Oadby sit at the more suburban and family end. The area near the two universities supports a student rental market. Much of the inner-city stock is pre-1919 terraced housing, so damp, roof condition and past extensions without building regulations approval are recurring valuation themes.
- Applicants who want a Sharia-compliant home purchase plan rather than an interest-bearing mortgage, which a limited number of providers offer.
- Buy-to-let across the inner terraced streets, where rents relative to prices clear interest coverage tests comfortably.
How do lenders assess a limited company director in Leicester?
Most take salary plus dividends drawn from the company, averaged over two years. A smaller group will instead use your salary plus your share of the company's retained profit, which often produces a much larger borrowing figure for a director who leaves profit in the business. Both approaches are legitimate; which lender you approach therefore matters more than almost anything else in a director's application.
Questions worth asking a self-employed broker
- How many years of accounts do I need in Leicester?
- Two years is the common requirement. A smaller number of lenders will consider one year, usually with a larger deposit or where you were previously employed in the same line of work.
- What income will a lender actually use?
- It depends on your structure. Sole traders are typically assessed on net profit, company directors on salary plus dividends, and some lenders on salary plus retained company profit. Contractors are frequently assessed on an annualised day rate.
- Do I need my accounts signed off by an accountant?
- Most lenders accept SA302 tax calculations with the corresponding tax year overviews from HMRC. Some also want accounts prepared by a qualified accountant, particularly for limited companies.
- Can I get a mortgage in my first year of trading?
- It is difficult but not impossible, especially if you moved from employment into self-employment doing similar work. Expect a narrower lender pool and a larger deposit requirement.