Self-Employed Mortgages

Owning a home is a major life goal for many, but navigating the mortgage process as a self-employed individual can feel daunting. While it may require extra preparation, securing a mortgage as a freelancer, contractor, or business owner is absolutely achievable. This guide will equip you with the knowledge and resources to confidently embark on your homeownership journey.


What Self-Employed Mortgages Aren’t

Contrary to popular belief, there’s no specific “self-employed mortgage” product. You’ll be applying for the same mortgages as everyone else, with one key difference: demonstrating your income stability. Lenders rely on payslips and employment contracts for traditional applicants, but you’ll need to show your income through alternative means.


The Key to Success: Proving Your Income Strength

Be prepared to present robust documentation, typically including:

Certified accounts: prepared by a suitably qualified accountant, covering at least two trading years.

Income Tax Calculation (SA302): Obtained from your accountant or direct from HMRC, these showcase your total income for the last completed tax year, usually two years are required

Business bank statements: Reflecting your gross income / business turnover to support the figures presented

Evidence of upcoming contracts (if applicable): Providing reassurance about future income stability.


Maximising Your Chances of Approval:

Maintain a healthy deposit: A larger down payment reduces the loan amount and demonstrates financial commitment.

Mind your credit score: A good credit history inspires confidence in your financial responsibility.

Shop around: Different lenders have varying criteria and acceptance levels. Compare rates and terms to find the best fit.

Seek professional guidance: A mortgage broker specialising in self-employed applicants can be invaluable.


Additional Considerations:

Fluctuating income: Lenders may average your income over multiple years to account for variations.

Limited trading history: Newer businesses may face stricter requirements.

Tax efficiency: Consult an accountant to optimise your tax situation and maximise your borrowing potential.


Moving Forward with Confidence:

While obtaining a mortgage as a self-employed individual requires thorough preparation, the path to homeownership remains open. By understanding the process, gathering the necessary documentation, and presenting a strong financial profile, you can confidently secure the mortgage that unlocks your dream home.


Ready to take the next step?

Browse our comprehensive range of mortgage lenders specialising in self-employed borrowers.

Connect with a qualified mortgage broker who can guide you through the process and advocate for your unique circumstances.

Access valuable resources and expert advice to empower your homeownership journey.

Remember, owning a home is within reach, even as a self-employed individual. With informed planning and the right support, you can turn your dream into a reality.


Are you a self-employed?

Call one of our expert advisors now or complete our Mortgage Enquiry Form