Self-Employed Mortgage
Getting a Mortgage When Self-Employed: What You Need to Know Securing a self-employed mortgage is absolutely possible, but lenders require more comprehensive documentation than for salaried applicants. To assess affordability and income stability, most lenders will review your business accounts or tax returns over the past two to three years. If you’re applying as a limited company director, sole trader, or freelancer, it’s important to show consistent earnings and a healthy financial profile. At Connect Mortgages, we specialize in helping self-employed business owners access flexible mortgage options that suit their unique income structure. Visit our mortgage calculator to estimate your borrowing potential, or learn more about our first-time buyer solutions if this is your first property purchase.
Are you self-employed and looking to obtain a mortgage to purchase or remortgage your home?
If so, you’re not alone. Thousands of self-employed professionals in the UK, whether freelancers, contractors, sole traders, or limited company directors, face similar challenges in proving their income and securing a competitive mortgage deal. At Connect Mortgages, we specialise in helping self-employed clients like you navigate these hurdles with expert advice, flexible lender options, and a transparent approach that keeps everything mortgage-compliant and stress-free.
What is a Mortgage for The Self Employed?
A self-employed mortgage isn’t a separate type of mortgage; it’s a standard residential loan where the main difference lies in how you prove your income. Instead of payslips and an employer reference, lenders typically request 2 to 3 years of financial evidence such as SA302 tax returns, HMRC tax overviews, and business bank statements. They focus on your net profit rather than turnover to assess consistent earnings and affordability.
A strong credit history, well-prepared accounts, and a larger deposit can significantly improve your chances of approval. Working with a specialist mortgage broker helps ensure you meet lender criteria and avoid delays in the process.
Who is Eligible for a Self Employed Mortgage?
You may qualify for a self-employed mortgage if you’re a sole trader, contractor, business partner, or a limited company director, typically with a 20% or greater shareholding.
To be considered, most lenders look for at least two years of consistent income supported by certified accounts, SA302 tax returns, and a solid credit history. While some mortgages are available with as little as a 5% deposit, making a larger deposit can improve your rate.
Just like employed applicants, you’ll need to provide evidence of affordability, such as bank statements, tax documents, and sometimes future contracts, to demonstrate you can meet monthly repayments with confidence.
How to Get a Mortgage When You're Self-Employed
Securing a mortgage as a self-employed individual can feel more complex, but with the right guidance and preparation, it doesn’t have to be. While the mortgage products available to self-employed applicants are the same as those offered to employed individuals, the key difference lies in how you prove your income.
At Connect Mortgages, we work closely with self-employed homebuyers to ensure your application is presented clearly, confidently, and fully compliant with mortgage regulations. Whether you’re buying a home or looking to remortgage your current property, we’ll help you gather the proper documents, choose suitable lenders, and improve your mortgage eligibility.
Key Requirements for Self-Employed Mortgage Approval
Lenders will assess your application based on several factors. Here’s what they typically look for:
Length of Self-Employment
- Most lenders prefer at least two years of trading history, backed by full tax returns or certified accounts. However, some specialist lenders may consider applications with just 12 months of self-employed income, especially if you’ve recently transitioned from a PAYE role in the same field.
🔗 Explore options for first-time buyers who are self-employed.
Income Stability
Lenders value predictable earnings. If your income fluctuates, they may average your net profits over the last two to three years. In some cases, the lowest annual figure may be used, so a sharp drop could affect your borrowing potential.
Creditworthiness
- Your credit score plays a key role. Lenders will review your credit history to assess how responsibly you manage debt. If your score is lower, they may adjust terms or request a larger deposit.
🔗 Learn more about mortgage options with adverse credit.
Deposit Size
- The larger your deposit, the better. While a 10% deposit may be accepted, making a 15%-25% deposit can unlock more competitive rates and improve your approval odds.
Affordability Checks
- Lenders will review your monthly outgoings, including bills, childcare, loans, and other financial commitments, to ensure you can afford the mortgage now and if rates rise. This is a key part of responsible lending.
🔗 Use our mortgage calculator to estimate how much you could borrow based on your income.
Essential Documents for Self-Employed Mortgage Applicants
To demonstrate your financial reliability and meet regulatory standards, you’ll need to provide a full set of documents, including:
- Proof of Identity and Address: Valid passport or driving licence, plus a recent utility bill or council tax statement.
- Personal and Business Bank Statements: Usually covering the last three to six months, these help lenders understand your income patterns and spending habits.
Evidence of Income
This is crucial for all self-employed applicants. You’ll typically need:
- Two or more years of certified accounts (ideally from a qualified accountant)
- SA302s and Tax Year Overviews from HMRC for the last 2–3 years
- Upcoming contracts or invoices if you’re a contractor or freelancer
- Salary and dividend evidence if you’re a limited company director
💬 Need help gathering these? Contact our mortgage experts and we’ll walk you through it.
Proof of Deposit
Lenders must verify the source of your funds. Bank statements or savings account histories are typically required.
Mortgage Advice..
Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation.
How Many Years of Accounts?
Most mortgage lenders prefer self-employed applicants to provide two to three years of financial records, including SA302s and Tax Year Overviews, to demonstrate steady income. However, it is possible to get a self-employed mortgage with just one year of accounts, especially if you have a strong credit history, a substantial deposit, and relevant past employment in the same industry.
Keep in mind: fewer years of accounts may limit your lender options and could result in slightly higher interest rates.
Standard Documentation for Self-Employed Mortgages (2–3 Years)
To qualify with most high-street and specialist lenders, you’ll typically need:
Two years of certified business or trading accounts
SA302 tax calculations and HMRC Tax Year Overviews for the last two to three tax years
Three months of bank statements (personal or business) showing income and outgoings
🔗 Unsure how much you could borrow? Try our self-employed mortgage calculator today.
Self Employed Mortgage Lenders
While less common, some lenders accept applications with only one year of trading, provided you offer stronger evidence of stability and affordability. To strengthen your case, you’ll likely need:
- A high credit score
- Proof of previous full-time employment in a related field
- Signed contracts or proof of future income (especially important for contractors and freelancers)
- A larger deposit to reduce lender risk
These factors can help offset the limited trading history and increase your chances of approval.
Learn how we support newly self-employed professionals and contractors through tailored mortgage solutions.
What to Expect When Applying
If you have less than two years of accounts:
- You may face fewer lender choices
- Interest rates may be slightly higher
- Lenders will require additional documentation to verify stability
At Connect Mortgages, we understand the complexities of self-employed income. We work with a wide panel of lenders who take a flexible approach and review applications on a case-by-case basis.
FAQs: Self Employed Mortgage
Most frequent questions and answers about self employed mortgage
Yes, self-employed individuals can get a mortgage. Generally, self-employed borrowers will need to provide additional documentation and may be subject to different lender requirements than those who are traditionally employed. However, self-employed applicants can qualify for mortgages with most lenders if they have adequate income and credit history.
Self-employed borrowers may need to provide additional documentation such as business tax returns, self-employment income verification, and bank statements. It’s important that self-employed applicants contact their lender ahead of time to determine which documents they will need to provide to be approved for a self-employed mortgage.
In the UK self-employed income is usually calculated using a self-certification mortgage. This type of mortgage requires self-employed applicants to self-certify their income by providing evidence of past earnings, and ongoing proof that they can meet the obligations of their mortgage payment. Lenders will also consider other financial information such as credit history and assets when determining self-employed income.
Most self-employed applicants will need to provide self-employed income verification for the last two to three years. However, this can vary from lender to lender and self-employed applicants should always contact their lender prior to applying for a self employed mortgage in order to find out what documentation is required.
Any self-employed grants that self-employed applicants receive can affect their mortgage application. Generally, self-employed grants are part of the applicant’s income and lenders may take this into consideration when determining the applicant’s eligibility for a mortgage. It is important for self-employed applicants to inform their lender of any self-employed grants they receive to ensure their mortgage application is processed accurately. Most lenders will deduct any grants from the net profit figure since this isn’t really generated income.
Most self-employed applicants will need to provide bank statements for the last two to three months. However, self-employed applicants should always contact their lender prior to applying for a mortgage to find out what documentation is required.
What next?
We will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 111.
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Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.
About the Author
Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.