Self-Employed Mortgage
Getting a mortgage when you are self-employed can be possible with the right income evidence. Lenders do not usually offer a separate self-employed mortgage product. Instead, they assess your income differently. They may review accounts, SA302 tax calculations, Tax Year Overviews, dividends, contracts and bank statements. At Connect Mortgages, we help sole traders, limited company directors, contractors, freelancers and business partners prepare for a residential mortgage application.
Self-Employed Mortgage
You may be able to get a mortgage if you are self-employed.
Most lenders want clear proof that your income is reliable and sustainable. This may include tax calculations, Tax Year Overviews, certified accounts, bank statements and business details.
A stronger application usually shows:
- Clear income evidence
- Stable or growing earnings
- A suitable deposit
- Well-managed credit
- Sensible monthly outgoings
- Documents ready before application
Connect Mortgages can help you understand what lenders may ask for before you apply.
Can You Get a Mortgage if You Are Self-Employed?
Yes, you can get a mortgage if you are self-employed.
The main difference is how your income is checked. Employed applicants often use payslips and a P60. Self-employed applicants may need to show trading history, tax records and business income.
This applies if you are:
- A sole trader
- A freelancer
- A contractor
- A limited company director
- A business partner
- A CIS worker
- A shareholder with business income
You can still apply for residential mortgage advice if your income is not paid through a standard monthly salary.
What Lenders Check For a Self-Employed Mortgage
Lenders want to know whether your income can support the mortgage now and in the future.
They may check:
- How long you have been self-employed
- Your latest annual income
- Whether income is stable, rising or falling
- Your business structure
- Your personal and business bank statements
- Your deposit source
- Your credit history
- Your current debts and regular spending
- The property type and mortgage term
Some lenders may average income over two or three years. Others may use the latest year if it is supported by strong evidence.
How Self-Employed Income May Be Assessed
Different self-employed applicants are assessed in different ways.
Sole traders
Lenders often look at net profit. This is usually shown on your SA302 tax calculation and Tax Year Overview.
They may ask for two or more years of records. Some may consider one year, depending on the case.
Limited company directors
Lenders may look at salary and dividends. Some may also consider retained profit, depending on the lender and the company position.
They may ask for company accounts, personal tax documents and business bank statements.
Contractors
Contractors may be assessed using day rate, contract income or declared income.
Lenders may ask for your current contract, previous contracts, bank statements and evidence of future work.
Freelancers
Freelancers often need to show income consistency.
This may include tax calculations, invoices, contracts, bank statements and accounts.
Business partners
Business partners may need to show their share of profit.
Lenders may review partnership accounts, tax documents and bank statements.
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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.
Documents You May Need
The exact documents depend on the lender, your income type and your business structure.
You may need:
- Proof of ID
- Proof of address
- SA302 tax calculations
- Tax Year Overviews
- Certified accounts
- Personal bank statements
- Business bank statements
- Proof of deposit
- Company accounts
- Dividend vouchers
- Current contracts
- Evidence of regular invoices
- Details of existing credit commitments
You can get your SA302 tax calculation and Tax Year Overview from HMRC. These documents are often used as proof of earnings when applying for a mortgage.
Can You Get a Self-Employed Mortgage with One Year’s Accounts?
It may be possible to get a mortgage with one year’s accounts.
However, lender choice may be smaller. You may need stronger supporting evidence, such as a larger deposit, good credit record, previous experience in the same trade, signed contracts or clear bank statements.
A broker can help identify lenders that may consider a shorter trading history.
If you are buying your first home, you may also want to read our first-time buyer mortgage guide.
Does a Larger Deposit Help?
A larger deposit can help by reducing the lender’s risk.
However, deposit size is only one part of the decision. Lenders still check income, affordability, credit history and the property.
A smaller deposit may still be possible, depending on your case and current lender criteria.
Before applying, you can use our quick mortgage calculator to estimate monthly repayments.
Self-Employed Remortgage
You may want to remortgage if your current deal is ending, your rate has changed, or your circumstances have changed.
If you are self-employed, lenders may still need updated income evidence. This can include recent accounts, tax documents and bank statements.
A remortgage review can help you understand your options before your current product ends.
What if You Have Adverse Credit?
Adverse credit does not always stop a self-employed mortgage application.
However, it can affect lender choice, deposit requirements and the rate available. Lenders may look at the type of credit issue, when it happened and whether it has been resolved.
If this applies to you, read our adverse credit mortgage guide before making an application.
Protection When you are Self-Employed
A mortgage is a long-term commitment.
If you are self-employed, you may not have the same sick pay or employee benefits as someone in paid employment. This makes protection planning important.
You can read more about mortgage protection insurance and how it may support your mortgage planning.
Find a self-employed mortgage adviser
Some applicants want to choose an adviser based on location, language, or specialist experience.
Connect Experts is part of Connect Group and allows users to search for mortgage advisers by practical filters. You can search for self-employed mortgage brokers or use the self-employed residential mortgage adviser search to find a suitable adviser.
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 and Connect for Intermediaries, a leading firm specialising in property investment finance. With more than 25 years of experience in the mortgage and financial services industry, Liz has helped thousands of clients secure both residential homes and investment properties.
Renowned for her expertise and commitment to excellence, Liz is passionate about delivering tailored, high-quality advice on mortgages and protection. Her leadership has positioned her as a trusted figure in the sector, and under her guidance, Connect Mortgages has expanded to a national team of over 300 advisers.
Driven by a vision to make Connect Mortgages one of the UK’s most successful mortgage networks, Liz continues to champion professional standards and client-focused solutions across the industry.
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.