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With over 4,500 5-star Trustpilot reviews, access to thousands of mortgage products from our huge panel of lenders, and great rates and relationships, self-employed people trust us to find a brilliant deal. And you can, too.
Deals on the fly
If you’re self-employed, then things are looking up for your mortgage. These days, some lenders are happy to offer deals to self-employed people. Our top-of-the-range tech scans deals 24/7 until we match you to one.
Let us do the legwork
Fed up with swiping through property portals? Tell us what you’re looking for and using our network of agents, we’ll help you find it. We can even handle the negotiations. We’re all about saving you money.
Matching mortgages
Mortgage lenders might have different self-employed mortgage requirements and look at different aspects of your earnings.
Mortgage lenders will look at your income over the last few years. If your earnings are on the up, they’ll base figures on the last few years. If they’re decreasing, they’ll base the mortgage offer on these numbers.
Many lenders use the day rate to determine how much they’d lend. Keep good records as a contractor, the lender will want to see the stability of your income.
Lenders look at your income from the last few years and see how the turnover is accounted for. Lenders look at profit, retained profits, salary, and dividends.
While sole traders, partners, directors and contractors are the most obvious markets for self-employed mortgages, it’s a broad definition. That’s why some lenders really specialise in making their self-employed mortgages as flexible as you are – and we specialise in connecting you with them!
What Is Considered Self-Employed?
You are considered self-employed if you work for yourself rather than being employed by a company or organisation. This includes running your own business, freelancing, consulting, or working as a contractor. Unlike salaried employees who receive regular pay, self-employed individuals often have variable income streams that can fluctuate month to month or year to year. This variation can make mortgage applications more complex, as lenders need to ensure your income is stable and sufficient to cover repayments over the term of the loan.
Keep in mind that the definition of “self-employed” can vary between lenders; some may also consider directors of limited companies or those with multiple income sources as self-employed for mortgage purposes. At Mortgage Matters, we specialise in working with self-employed clients, guiding you through the process to help find a mortgage that suits your specific circumstances.
What Documents Do I Need for a Self-Employed Mortgage?
Mortgage applications for self-employed borrowers normally require more detailed documentation than those for employees. Lenders want to see clear evidence of your income and financial stability over time. The most common documents you’ll need to provide include:
- Your last two to three years of self-assessment tax returns
- SA302 tax calculation forms issued by HMRC
- Business accounts prepared by a qualified accountant
- Bank statements for both business and personal accounts
- Proof of ongoing contracts or invoices (especially if income is irregular or you’ve recently become self-employed)
Having these documents prepared and organised can significantly improve the strength of your mortgage application and ensure a smoother approval process. At Mortgage Matters, we guide you through gathering all necessary paperwork to present your finances in the best possible way.
How Can I Improve My Chances of Being Accepted for a Mortgage?
Whilst getting mortgage approval as a self-employed applicant can be more challenging, there are several steps you can take to improve your chances:
- Maintain Accurate Financial Records. Keeping your accounts up to date and properly filed is essential. Using a professional accountant to prepare your accounts and tax returns adds credibility to your application.
- Show Consistent and Growing Income. Lenders not only want to see that you’re earning enough to cover mortgage repayments, but also that your income is reliable and, ideally, increasing over time. This gives them confidence that you can manage long-term financial commitments.
- Keep Your Credit Score Healthy. A strong credit history with no missed payments or defaults demonstrates reliability and reassures lenders that you are capable of managing debt responsibly.
- Minimise Outstanding Debts. High levels of personal or business debt can negatively impact affordability calculations. Paying off debts before applying can help your help your application appear stronger and improve your chances of securing a favourable mortgage deal.
- Save a Larger Deposit. A bigger deposit reduces the lender’s risk and often improves your chances of securing a mortgage with better interest rates.
- Work with a Specialist Broker. Mortgage Matters understands the challenges faced by self-employed borrowers and can connect you with lenders who understand your situation.
Taking these steps not only strengthens your mortgage application but also puts you in a stronger position to negotiate better terms, such as lower interest rates or access to a broader range of mortgage products.
The Mortgage Process Whilst Self-Employed
The mortgage process for self-employed applicants broadly follows the same stages as for employed borrowers, but with extra focus on income verification and affordability. Firstly, you’ll have an initial assessment where your finances and income potential are reviewed. This helps determine which lenders are likely to offer you the best deals. Next, you’ll obtain an Agreement in Principle (AIP), which gives you a clear idea of how much you can borrow based on the information provided so far.
Once you find a property that fits your budget and meets lender requirements, you’ll submit a full mortgage application. The lender will then carry out a property valuation and conduct a thorough affordability assessment, factoring in your self-employed income alongside any other financial commitments.
The process can be more document-heavy due to your self-employed status, making it slower than a standard mortgage application. Our team will support you every step of the way, ensuring all necessary documents are in order, liaising with lenders on your behalf, and addressing any queries that may arise.
FAQs for Self-Employed Mortgages
Most lenders require two years of self-employed trading history as a minimum. This provides them with enough evidence to assess your income and business stability. However, some specialist lenders may accept applicants with less than two years’ accounts, especially if you have a strong credit history and can demonstrate consistent income or have previously worked in the same industry.
Deposit requirements for self-employed borrowers generally start at 15-25% of the property’s value. A larger deposit may increase your chances of approval and can also help secure more competitive interest rates. Lenders view larger deposits as lower risk, especially for self-employed applicants whose income may fluctuate.
Whilst most lenders prefer three years of tax returns, some are more flexible and may consider applications with two years or even alternative proof of income, such as accountant-prepared accounts or bank statements. Mortgage Matters can help you identify lenders who offer more flexible criteria and assist you in gathering the right documentation to strengthen your application.
Getting a mortgage can be more challenging when you work for yourself, as lenders often view self-employed income as less predictable compared to salaried income. This means they require more detailed proof of your earnings and financial stability, such as multiple years of accounts and tax returns. However, with accurate documentation and professional guidance, many self-employed borrowers successfully secure mortgages.
The amount you can borrow depends on your income, credit profile, existing financial commitments, and the lender’s criteria. Lenders usually calculate affordability based on an average of your income over the last two to three years. Working with a specialist broker can help you identify lenders willing to consider your unique financial situation.
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