Self Employed Mortgages
Self-Employed Mortgages – For Business Owners & Freelancers
If you’re self-employed and looking to buy a home, you’re not alone. Thousands of freelancers, business owners, contractors, and company directors successfully secure mortgages every year.
A self-employed mortgage is not a special product — it’s a standard mortgage, assessed differently to reflect how self-employed income works.
Can Self-Employed People Get a Mortgage?
Yes. Self-employed people can absolutely get a mortgage.
Mortgage lenders don’t reject applications based on employment type — they assess income stability, affordability, and risk.
Instead of payslips, self-employed applicants use business income evidence to prove earnings.
Who Is Classed as Self-Employed?
You are classed as self-employed if you are:
- A sole trader
- A limited company director
- A freelancer
- A contractor
- A business owner
- A business partner
How Do Lenders Assess Self-Employed Income?
Sole Traders
Lenders use your net profit as income.
Limited Company Directors
Income can be based on:
- Salary
- Dividends
- Retained profits (with specialist lenders)
Different lenders use different assessment models — which is why using the right lender matters.
What Documents Are Needed for a Self-Employed Mortgage?
Most lenders require:
- 1–2 years of accounts
- SA302 forms
- Tax year overviews
- Business bank statements
- Personal bank statements
- Proof of ID and address
Some lenders accept just 1 year of accounts, making mortgages possible for new businesses.
How Much Can Self-Employed Borrow?
Mortgage affordability depends on:
- Declared income
- Business performance
- Credit profile
- Deposit size
- Financial commitments
Most lenders offer 4–5x annual income, though higher multiples are possible in strong applications.
Do Self-Employed Mortgages Have Higher Rates?
Common Self-Employed Mortgage Myths
- "Self-employed people can’t get mortgages"
- "You need 3 years of accounts"
- "Rates are always higher"
- "Only big banks lend to self-employed"
Reality: With the right lender and correct application structure, self-employed applicants can access the full mortgage market.
How to Improve Your Chances of Mortgage Approval
- Keep clean business accounts
- File tax returns accurately
- Maintain good personal credit
- Reduce personal debt
- Build a strong deposit
- Use lenders that specialise in self-employed cases
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