Self-Employed and Looking for a Mortgage? Here’s What You Need to Know

Being self-employed comes with a lot of freedom, but when it comes to applying for a mortgage, it can feel like a bit of a minefield. As a mortgage broker, I work with many business owners, freelancers, and contractors—and I see the same worries and challenges come up time and time again.

The good news? Getting a mortgage when you're self-employed is absolutely possible. You just need to be prepared, understand what lenders are looking for, and present your finances in the best light.

Here’s what you need to know:

1. Lenders Need to See Stability

Most lenders want to see two of accounts to assess your income. That might be your tax returns (SA302s), tax overviews, or, full accounts from your accountant.

Top Tip: If you’ve had a dip in income one year due to a one-off event (like Covid, maternity leave, or taking time out), speak to a broker. We can help you explain the situation clearly to lenders who are more flexible.

2. Be Clear on Your Income Type

Whether you’re a sole trader, limited company director, or contractor, lenders will assess your income slightly differently:

• Sole traders: Your net profit is usually what lenders go by.

• Limited company directors: Lenders often look at your salary plus dividends—but some will consider salary and net profit.

• Contractors: Some lenders will assess your daily rate and project this over a year—ideal if your accounts don’t show your true earnings.

  
  

3. Keep Your Accounts Up-to-Date

Out-of-date or messy accounts can really slow things down—or even stop your application in its tracks. Make sure:

• Your latest tax return has been submitted

• Your accountant can quickly provide any documentation requested

• Your personal and business accounts are separate (this makes everything clearer)

  
  

4. Don’t Max Out Your Expenses

It’s tempting to claim every business expense going to reduce your tax bill—but be aware, it also reduces your declared income. If your income looks lower on paper, it may reduce your borrowing power.

That doesn’t mean you should change your entire tax strategy, but it’s worth reviewing your goals with your accountant if you’re planning to buy.

5. Credit Score Still Counts

Being self-employed doesn’t mean lenders will skip the credit check. Make sure your credit report is clean and up-to-date. Pay off any outstanding debts where possible, and don’t apply for unnecessary credit in the months leading up to your application.

6. A Bigger Deposit Helps

Self-employed borrowers aren’t penalised when it comes to interest rates—but like any borrower, having a decent deposit (10% or more) can help you access better deals and make your application stronger.

7. Use a Broker (Like Me!)

The self-employed route is rarely one-size-fits-all. Every lender has different criteria, and while one might say no, another might say yes without blinking.

As a broker, I know which lenders are self-employed friendly, which documents you’ll need, and how to position your application for success. I’ll save you time, hassle, and a whole lot of uncertainty.

Thinking of Buying or Remortgaging? Let’s Talk.

Whether you’re just starting to explore your options or you’re ready to go, I’d love to help guide you through the process. Let’s take the stress out of mortgages so you can focus on running your business.