For many self-employed individuals, owning a home is a major life goal—but navigating the mortgage process can feel daunting. Traditional employment offers predictable payslips and job security, which many lenders favour. However, being self-employed doesn’t mean you can’t secure a competitive mortgage. It simply means the path may be slightly different.
In this article, we’ll cover everything you need to know about mortgages for the self-employed—from eligibility and documentation to tips on improving your chances of approval.
Who Counts as Self-Employed?
You’re typically considered self-employed if you run your own business, work as a freelancer or contractor, or earn your income through dividends and profit rather than a salary. This includes:
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Sole traders
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Limited company directors
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Partners in a business
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Contractors or gig economy workers
If you own more than 20–25% of a business or company and your income is not PAYE (Pay As You Earn), you’ll likely be assessed as self-employed by lenders.
Can the Self-Employed Get a Mortgage?
Yes—self-employed people can absolutely get a mortgage. However, the application process may require more paperwork, and lenders will look closely at your income stability and ability to repay. They want reassurance that your income is reliable enough to cover monthly mortgage repayments.
What Do Lenders Look For?
Lenders assess self-employed applicants on the following criteria:
1. Proof of Income
This is the most important factor. Most lenders require at least two years of accounts or tax returns to prove your income is consistent and sustainable.
2. Credit History
A good credit score is vital. It helps assure lenders that you manage credit responsibly.
3. Deposit Size
Generally, a larger deposit (15%–20%) can improve your chances of securing a mortgage with favourable terms.
4. Business Performance
Lenders will look at your business’s health. Are profits rising or stable? Are there any warning signs of financial instability?
What Documents Will You Need?
Being prepared with the right documentation can help smooth the process. Lenders may request:
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SA302 forms from HMRC (proof of your declared income)
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Tax year overviews for the last 2–3 years
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Business accounts signed off by a qualified accountant
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Bank statements (personal and business)
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Proof of deposit
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Identification and address verification documents
Some specialist lenders may accept one year of accounts, but this usually requires a larger deposit or a higher credit rating.
Tips for Improving Your Mortgage Application
Being self-employed means taking extra steps to strengthen your application. Here are some tips:
1. Use a Certified Accountant
Having your accounts prepared and signed by a qualified accountant boosts credibility and increases your chances of approval.
2. Improve Your Credit Score
Pay bills on time, keep your credit utilisation low, and check your credit report regularly for errors.
3. Save a Larger Deposit
The more you can put down, the lower the risk for the lender—and the better your mortgage options may be.
4. Reduce Business Expenses
Some self-employed people minimise taxable income for tax efficiency, but this can hurt your mortgage application. It’s a good idea to discuss strategy with your accountant ahead of applying.
5. Avoid Major Financial Changes
Avoid switching accountants, restructuring your business, or taking time off in the run-up to applying for a mortgage.
Should You Use a Mortgage Broker?
Absolutely—a mortgage broker can be incredibly helpful for the self-employed. Brokers understand which lenders are most sympathetic to self-employed applicants and can guide you towards the best deals based on your circumstances.
They can also help you prepare documentation, avoid common pitfalls, and handle the application on your behalf, saving time and reducing stress.
What Are the Best Mortgage Options for the Self-Employed?
Self-employed individuals can access the same mortgage types as employed people:
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Fixed-rate mortgages – Monthly payments stay the same for a fixed period.
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Variable-rate mortgages – Payments can change depending on interest rate movements.
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Tracker mortgages – Usually follow the Bank of England base rate.
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Offset mortgages – Link your savings to your mortgage balance, reducing interest charges.
The key difference is how your income is assessed. Specialist lenders may be more flexible in evaluating your earnings, especially if your income is irregular.
Can You Get a Mortgage with One Year of Accounts?
It’s more challenging, but not impossible. Some lenders will consider your application with just one year of trading history, especially if:
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You have a strong credit score
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Your income is substantial and stable
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You have a large deposit
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You previously worked in a similar field and recently became self-employed
In such cases, using a mortgage broker becomes even more valuable.
Common Myths About Self-Employed Mortgages
Let’s clear up a few misconceptions:
Myth 1: You can’t get a mortgage if you’re self-employed.
False. Many self-employed individuals secure mortgages every year.
Myth 2: You need at least three years of accounts.
Some lenders will accept two—or even one—year of accounts with the right supporting evidence.
Myth 3: You’ll always pay higher interest rates.
Not true. If your financial situation is strong, you may access the same competitive rates as employed applicants.
Final Thoughts
Being self-employed doesn’t mean you have to miss out on homeownership. While the process of securing a mortgage may involve more preparation, it’s entirely achievable with the right documentation, a solid financial track record, and possibly the support of a mortgage broker.
By understanding how lenders assess self-employed applicants and preparing in advance, you can confidently move one step closer to owning your dream home.
Need tailored mortgage advice as a self-employed professional?
Consider speaking to a qualified mortgage broker who specialises in self-employed clients for expert guidance and access to the best deals on the market.
