Getting a mortgage can involve a little more effort when you’re self-employed, but it’s perfectly possible. In this short guide, we’ll explain what you’ll need to consider and how to improve your chances of qualifying for a mortgage as a self-employed applicant.
Last updated on
May 9, 2025 16:57
There isn’t really a dedicated ‘self-employed mortgage’ as self-employed applicants have access to the same range of mortgages as any other borrower. Many lenders do accept self-employed income these days, as long as it’s well-documented, but the criteria can vary a lot, depending on your setup.
In some cases when the applicant(s) are self-employed, you might hear the application referred to by lenders or brokers as a ‘self-employed mortgage’ but the actual product is not different. The use of this terminology is simply to identify that the criteria can be slightly different than for an employed applicant. For example, more extensive proof of income is typically needed.
You’re usually classed as self-employed if you own 20-25% or more of the business that you earn your main income from, though this can vary depending on the lender. Usually, this will be as one of the following:
It’s important to understand that lenders look at self-employment differently, so they won’t necessarily all treat your employment-type or income in the same way. This highlights the importance of speaking to a broker, like ourselves, when making a self-employed mortgage application, as we can compare lenders across the market to see which is likely to look at your individual income type the most favourably.
There’s no industry-wide rule for this - each lender sets their own criteria. That said, many high street lenders will typically look for 2–3 years of self-employed income history. Some specialist lenders may consider applicants with less, but it really depends on how they assess risk and your overall financial picture.
Some lenders might consider you with just one year's worth of income, but it’s less common, and your chances are better with more trading history.
It’s worth considering that those in certain careers are more likely to be accepted with one year's worth of income, such as non-NHS doctors and dentists, or similar professionals. It may also be easier to satisfy a lender if you were previously employed or contracting in the same industry and can therefore show experience.
If you’ve been self-employed for less than a year, it’s unlikely that you’ll qualify for a mortgage until you’ve hit the 1 year mark.
Our dedicated guide about how to prove your income on a mortgage application when you’re self-employed can provide more detail, but largely, there’s a little more prep work required. Beyond that, the mortgage application process is pretty much the same as any other.
What you’ll need to provide can vary from lender to lender, and will also depend on how you’re self-employed. But generally, on top of the typical documents that every applicant needs, lenders may ask to see documents like:
The period of time you need to provide for the above documents will vary from lender to lender, depending on their individual criteria.
In theory, if your income is steady and well-documented, you might be able to borrow a similar amount to someone earning the same in a salaried job, but some lenders do apply stricter checks for self-employed income.
When it comes to assessing self-employed income, lenders are looking for the same as they are from an employed applicant, which is stability of income. This means that if your profits fluctuate, they can be more cautious with their lending. They will usually want to see that income is fairly steady or growing, year on year.
There are also some differences when it comes to which figures lenders use to determine your annual income. Some may be willing to look at the most recent tax year, however, others prefer to take an average of the last 2-3 years. If your income has dropped, it’s likely that they will only be willing to base your loan on the lowest annual income.
Note: Most lenders will also consider the reasons for a dip in earnings if you can offer an explanation. For example, maybe you invested in new equipment, which lowered your profits for that year.
The best lender to approach as a self-employed applicant will come down to the type of self-employment you carry out and how long you’ve been trading. Some lenders specialise in mortgages for self-employed people, and they are more likely to be more lenient with how much they’ll lend or how many years of income proof they need.
It’s also worth considering that not all lenders will consider all types of self-employment, for example, some lenders won’t accept contractors, but are perfectly happy with company directors.
How lenders assess your income can also be a factor in your decision. If you’re a limited company director, for example, some lenders will look at your salary and dividends, whereas others may consider your business profits. It’s a good idea to speak to a broker to determine which is the most suitable lender for your individual needs.
Get in touch with a Habito mortgage expert today.
You can use our mortgage calculator to get a general idea about how much you could borrow with a self-employed mortgage and the sort of rates that may be available to you.
That said, because self-employed applications are so individual, the calculator can only give you a rough estimate. For a more tailored view of your options, including what you might be able to borrow and which lenders are likely to suit your situation, the best next step is to get a mortgage in principle with us. We check a wide range of lenders across the market to help you find a deal that fits.
Many of these tips will be useful to most mortgage borrowers, but as getting a mortgage when you’re self-employed can be slightly more tricky, they’re more important to note. However, there are also some important tips that relate specifically to being self-employed.
If you follow this advice, you’ll be well on your way to a smoother self-employed mortgage application:
Remortgaging when you’re self-employed works much the same as if you were employed. The key difference is how your income is assessed. Lenders will want to see that your earnings are stable and well-documented.
Any potential concerns that lenders may have will be very similar to those when you took out your original mortgage, and will relate to providing adequate proof of a stable income. If any of your finances or lifestyle factors have changed significantly, it’s a good idea to speak to a broker. This is particularly important if you’ve recently become self-employed or changed the type of self-employed trading that you carry out.
Being self-employed doesn’t automatically mean you’ll pay a higher mortgage rate. If you can prove a stable income over the timeframe a lender asks for, you should have access to the same deals as someone earning the same amount in an employed job.
That said, if a lender sees your application as higher risk, maybe because your income is more variable, or your trading history is shorter, the range of deals available to you might be a bit more limited.
A bigger deposit (which lowers your loan-to-value, or LTV) can help open up more competitive rates too.
In some cases, yes, you can, although you’re likely to need a more specialist lender in order to qualify. Speak to our team for more information.
It can be slightly more difficult, but so long as you can prove your income, it shouldn’t make too much difference. The important thing is to ensure you approach a lender who accepts your specific type of self-employed income.
“Self-certification” or “self-cert” mortgages were banned in the UK after the Mortgage Market Review in 2014, which made it a legal requirement for lenders to verify income. They had originally been designed to help self-employed mortgage borrowers by allowing them to self-certify how much they earned without the need to provide evidence.
Unsurprisingly, many people took on debt that they couldn’t afford to pay back, which led to repossessions and serious national financial issues. Self-employed mortgage applicants now need to apply for a mortgage in the same way as everyone else.
Yes, you can. In fact, in some cases, it can be easier for a self-employed applicant to get a mortgage with an employed joint borrower, as their income is seen as more stable.
It’s also possible to apply jointly for a mortgage if both applicants are self-employed, however, so long as both applicants are able to adequately prove their income.
Last updated: 29/04/2025
[Disclaimer] This content is intended for general guidance and is not a substitute for personalised mortgage advice.
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