Self-Employed Mortgages Made Simple | Being your own boss offers freedom and flexibility, but when it comes to applying for a mortgage, things can feel a little more complex. If you’re self-employed, a contractor, a freelancer, or running a limited company, you might wonder whether lenders will see your income as stable enough. The good news? With the right guidance and preparation, getting a mortgage for self-employed professionals is not only possible but also often straightforward.
At Connect Mortgages, we specialise in helping self-employed clients secure home loans with confidence. Whether you’ve been trading for years or just started recently, our experienced advisers understand how to present your finances clearly and navigate lender requirements on your behalf.
Can I Get a Mortgage If I’m Self-Employed?
Yes, you can. The self-employed can access the same mortgage deals as employed applicants. The key difference lies in how you prove your income. Lenders want to ensure your earnings are stable and sufficient to cover repayments. This means you’ll typically need to provide:
- SA302s and tax overviews from HMRC (usually two years, though some lenders accept one)
- Full accounts if you’re a limited company director
- Proof of retained profits or dividend income
- Evidence of regular contracts (for contractors and freelancers)
Don’t worry if you don’t tick every box. Lenders vary, and our team will help match you with those most likely to approve your application based on your situation.
If you’re unsure where to start or need tailored advice, you can “Find Mortgage Advisers” who specialise in self-employed mortgage solutions.
Who Qualifies as Self-Employed?
You’re usually considered self-employed for mortgage purposes if you own more than 20-25% of a business, and your income isn’t taxed via PAYE. This includes:
- Sole traders
- Freelancers and contractors
- Limited company directors
- Partners in a business
Each setup has its own documentation standards. For instance, sole traders often report income as net profit, while company directors may report income as salary plus dividends or retained profits. Our advisers understand these differences and ensure your income is presented in the most favourable light.
How to Improve Your Chances of Approval
Here are some practical tips to strengthen your application for a self-employed mortgage:
1. Keep Your Records in Order
Submit accurate and up-to-date accounts, ideally prepared by a qualified accountant. Lenders prefer clarity and consistency, especially over two consecutive years.
2. Minimise Business Expenses Where Sensible
While it’s natural to reduce taxable profit, some lenders base affordability on your net income. Overclaiming expenses could impact your borrowing power.
3. Build a Good Credit Profile
Make payments on time, avoid unnecessary borrowing, and check your credit report for errors. Your credit history still plays a big role in lender decisions.
4. Save a Larger Deposit if You Can
Although there are options with as little as 5-10% deposit, having 15% or more improves your access to better rates.
5. Use a Specialist Adviser
Working with a broker who knows the market can make a significant difference. We understand how each lender assesses self-employed income and can guide you to the most appropriate deal. Visit our Self-Employed Mortgage page for a breakdown of the documentation you may need.
What Mortgage Options Are Available?
Being self-employed doesn’t limit your product choice. You’ll still be able to explore:
- Fixed and tracker rates
- Capital repayment and interest-only options
- First-time buyer mortgages
- Remortgage deals
- Buy-to-let for self-employed landlords
- Help to Buy and Shared Ownership schemes
If you’re also looking to protect your income or a loan, we can assist with Life Cover and Mortgage Protection, providing peace of mind in the event of the unexpected.
How Long Do I Need to Be Self-Employed?
Many lenders prefer at least two full years of trading history. However, some providers accept one year of accounts, especially if you have a high income or work history in a similar field. Contractors with consistent assignments may also find more flexible options.
The more detail you provide about your business’s sustainability, the better. If you’re close to year-end, it might be worth waiting to submit updated figures showing an income increase. Our advisers can help you time your application for the best outcome.
What If My Income Fluctuates?
Irregular income doesn’t mean an application is declined. Lenders often take an average of your last two years’ earnings or lean on the lower year to assess affordability. A strong current year may help balance out past volatility.
Where needed, we can provide lender recommendations that are more flexible or willing to consider retained profits, day rates, or projected income. If you’re remortgaging, they may even use your bank statements from the past 6–12 months to assess your financial stability.
Remortgaging If You’re Self-Employed
Already own your home and want a better deal or to release equity? We also offer Remortgage solutions tailored for self-employed homeowners. Whether you’re approaching the end of a fixed-rate term or need to free up funds for business growth, we can help you find options that suit your income and plans.
Self-Employed Buy-to-Let Options
If you’re self-employed and looking to build property wealth, we support a wide range of Buy to Let mortgage options. Whether you’re purchasing in your name or via a limited company SPV, we can help you navigate the market and find the right lender, even with complex income streams.
Why Choose Connect Mortgages?
We’ve helped hundreds of self-employed professionals secure mortgages that suit their income structure and ambitions. With over 20 years of experience and access to a wide panel of lenders, we can help:
- First-time buyers working for themselves
- Company directors with retained profits
- Contractors with less than two years’ accounts
- Freelancers with variable income streams
“As a freelance graphic designer with fluctuating income, I thought I’d never qualify but Connect helped me get a mortgage with just one year of accounts.”
Being self-employed shouldn’t mean hitting roadblocks when applying for a mortgage. With the right paperwork and lender match, your income flexibility can be a strength. We also support advisers seeking to deliver greater value to their self-employed clients. If you’re a mortgage adviser yourself, “Join our Mortgage network” and access tools designed to streamline client approvals and expand your product offering.
Ready to Move Forward?
You don’t have to navigate the self-employed mortgage process alone. Our team is here to guide you every step of the way, from preparing your paperwork to securing a lender match. With the right support, you can turn your hard-earned income into a home that works for you.
Take the first step today – Find Mortgage Advisers who understand the unique needs of self-employed applicants.
Thank you for reading our “Self-Employed Mortgages Made Simple | Connect Mortgages” publication. Stay “Connect“-ed for more updates soon!
