How to Get a Mortgage when Self-Employed

Being self-employed doesn’t mean you’ll always hit a dead end when applying for a mortgage. It just means the road you’ll need to travel down is a little different. 

Sure, lenders might ask for more paperwork or take a deeper dive into your income. But don’t be put off by the process. With our help and some solid preparation, you could be closer to your new home than you think. Let’s break everything down for you. 

Can You Get a Mortgage if You’re Self-Employed?

Yes, of course. Self-employed people get mortgages every day. Whether you’re employed or self-employed, mortgage lenders just want to be confident that you can afford the repayments. If you’re self-employed, you won’t have a backlog of payslips, so you’ll need to prove your income in another way. 

Some lenders might take a cautious approach, but lots more are totally on board and will happily consider self-employed applicants. An experienced mortgage broker (like us!) will know who to speak to and how to present your case in the best light, so you don’t have to make this trip on your own. 

When Are You Considered Self-Employed?

Lenders will usually classify you as self-employed if you own 20% or more of a business and your main income comes from that business. This includes:

• Sole traders – running your business as an individual

• Partners – in a business partnership

• Limited company directors – with a stake in the company

• Freelancers and contractors – typically working with multiple clients or on short-term contracts
  

Agency workers and those on umbrella contracts are not usually considered self-employed, though the irregular nature of their income may be assessed in a similar way.

How Long Do You Have to Be Self-Employed?

Most lenders prefer at least two years of self-employed trading history. However, some will consider you with just one year of accounts, especially if you have:

• A strong previous employment history before you went solo

• Clear future income projections for your business

• Plenty of upcoming contracts and/or steady bookings

• A qualified accountant preparing your accounts

How Will It Affect Your Mortgage Application?

Your income might fluctuate, and that’s completely normal when you’re self-employed. But lenders will want to know it’s reliable, consistent and sustainable throughout the mortgage term.

To understand this better, they’ll check:

• Your average earnings over the past two or three years

• Whether your profits are growing (or dipping)

• If your client base or work is stable

• Your outgoings and existing debts

It’s not about perfection—it’s about proving consistency and that your in control of your future finances. This is why having your paperwork in order and ready to go is pretty crucial to getting approved. 

What Proof of Income Do You Need?

You’ll usually need to provide:

• Two to three years of certified accounts

• SA302 tax calculations and HMRC tax year overviews

• Business bank statements (typically last 3–6 months)

• Personal ID and proof of address

• Details of upcoming contracts (if available)

• Dividend vouchers or retained profits (if you’re a company director)
  

If you’ve been self-employed for less than two years, evidence of previous employment or contracts will also help support your application.

Which Mortgage Lenders Can Help?

Most will consider your application, but the criteria can vary from lender to lender. Some high street banks may require at least three years of accounts, whereas specialist lenders are often more flexible and open to:

• Newer self-employed applicants (with one year’s accounts)

• Complex income structures

• Gaps between contracts

• Company directors using retained profits
  

This is where a mortgage broker can shine for you! 

They’ll already know which lenders are open to different scenarios, and because specialist lenders don’t really have a presence on the high street, they’ll also be able to help you find the right one for your circumstances. 

How Much Can You Borrow?

Lenders typically offer between 4 and 4.5 times your annual income. How they calculate your income depends on your trading style:

• Sole traders/partners – average net profit over 2–3 years (for partners, your share)

• Limited company directors – salary plus dividends, or salary plus share of retained profits
  

For example, if your average annual income is £45,000 and a lender uses a 4.5x mortgage multiplier, you could borrow up to £202,500 (4.5 x 45,000).

Lenders will also carry out affordability checks, reviewing your monthly outgoings, debts, and credit history before making an official mortgage offer. 

Will You Need a Higher Deposit?

Your employment status doesn’t automatically mean you’ll need a bigger deposit. If your finances are strong, some lenders offer mortgages with deposits as low as 5–10%.

That said, putting down a bigger deposit can:

• Strengthen your application

• Lower your monthly repayments

• Help you access better mortgage deals with lower interest rates

So if you can save more, it could be worth it in the long run.

How Can You Boost Your Chances?

There are several ways to swing things in your favour:

• Get all your documents ready and organised early – including accounts, SA302s, bank statements, and ID. 

• Use a qualified accountant – this can add credibility to your proof of income. 

• Keep a close eye on your finances – make sure all your monthly bills are paid on time, pay off any other debts if you can and download your credit report to make sure all the information on your record is accurate. 

• Save for a bigger deposit – a bigger deposit means you’ll have more lenders willing to look at your application. 

• Apply for a mortgage in principle - this will give you an indication of how much you can borrow and will show both sellers and prospective lenders you’re serious about your intentions. 

• Work with a mortgage broker who gets how lenders tick when it comes to self-employed applicants and knows how to approach different scenarios.