Self-Employed Mortgages – Expert Advice for Business Owners & Contractors
Can You Get a Mortgage If You’re Self-Employed? Absolutely!
Getting a mortgage as a self-employed person, freelancer, contractor, or business owner can feel more complicated than it is for someone in traditional employment. Many high street lenders prefer borrowers with a steady PAYE salary, but that doesn’t mean self-employed individuals cannot secure competitive mortgage deals.
At Mather & Murray Financial, we specialise in helping self-employed professionals navigate the mortgage process. Whether you are a sole trader, limited company director, or work on a contract basis, we can help you access lenders who understand self-employment income and offer tailored mortgage solutions.
How Do Mortgage Lenders Assess Self-Employed Applicants?
For salaried employees, lenders simply review payslips and employment contracts. However, self-employed applicants are assessed differently. Mortgage providers will typically evaluate:
- Your income over the past 2–3 years (some lenders accept just 12 months of accounts).
- Profitability trends – Lenders want to see steady or increasing earnings.
- Your business structure – Sole traders, partnerships, and limited company directors are assessed slightly differently.
- Tax records and financial accounts, including your SA302 tax calculations from HMRC.
- Your deposit size – A larger deposit can improve mortgage options.
- Your credit history – A good credit score helps demonstrate financial responsibility.
Understanding these criteria can help strengthen your mortgage application and improve your chances of approval.
What Mortgage Options Are Available for the Self-Employed?
Many people assume self-employed mortgages are a special product, but in reality, self-employed individuals can access the same mortgages as employed borrowers—the key difference is in how income is assessed.
1. Residential Mortgages for Self-Employed Individuals
If you are looking to buy a home to live in, lenders will assess your business income rather than a traditional salary. Some lenders specialise in self-employed mortgage applicants and are more flexible in their criteria.
2. Contractor Mortgages
For contractors and freelancers, lenders may use your day rate or annualised contract value instead of requiring multiple years of accounts. If you work on fixed-term contracts, we can help find lenders who accept contract income.
3. Buy-to-Let Mortgages for Self-Employed Landlords
If you are investing in rental properties, self-employed individuals can apply for buy-to-let mortgages, though lenders may require a higher deposit and proof of rental income.
4. Limited Company Director Mortgages
If you run a limited company, lenders will often assess salary plus dividends. Some lenders will also consider retained profits within your company, which can help maximise borrowing potential.
At Mather & Murray Financial, we help clients find the right mortgage product, structure their application correctly, and maximise borrowing potential.
How to Prove Your Income as a Self-Employed Borrower
To apply for a self-employed mortgage, you will need to provide evidence of your income and financial stability. Most lenders require:
1. SA302 Tax Calculations & HMRC Tax Year Overviews
- Your SA302 forms show declared taxable income over the past few years.
- These can be obtained through HMRC online services or from your accountant.
2. Certified Accounts from a Chartered Accountant
- Many lenders prefer accounts prepared by a certified or chartered accountant.
- If profits fluctuate, an accountant can help explain any variations in income.
3. Business Bank Statements
- Some lenders ask for 3–6 months of business and personal bank statements to verify cash flow.
4. Contract or Client Agreements (For Contractors & Freelancers)
- If you work on fixed-term contracts, lenders may use your current contract as proof of income.
- Some lenders will annualise your day rate to calculate mortgage affordability.
5. Credit Report
- Checking your credit score with Equifax, Experian, or TransUnion before applying can highlight any issues.
Lenders may have different requirements, but preparing these documents in advance can speed up the mortgage process and improve your approval chances.
What Deposit Do You Need for a Self-Employed Mortgage?
- Most lenders require at least 10% deposit (90% LTV mortgage).
- For better rates, a 15–25% deposit is recommended.
- Buy-to-let mortgages usually require a 25% deposit or more.
A larger deposit reduces risk for lenders, making it easier to secure a competitive mortgage deal.
How Mather & Murray Financial Can Help
At Mather & Murray Financial, we have helped countless self-employed individuals, business owners, and contractors secure mortgages tailored to their unique financial situations.
Why Choose Us?
✔ Specialists in Self-Employed Mortgages – We know which lenders accept different income structures.
✔ Access to Whole-of-Market Lenders – Including specialist lenders not found on the high street.
✔ Expert Guidance on Income Documentation – We help you prepare the strongest application.
✔ Dedicated Support from Start to Finish – We handle the process so you can focus on your business.
✔ Local & Nationwide Service – Meet with us at our Swindon head office or via an online consultation.
Frequently Asked Questions About Self-Employed Mortgages
1. Can I Get a Mortgage If I’ve Only Been Self-Employed for One Year?
Yes, some lenders accept just 12 months of trading history, although more options are available with two or more years of accounts.
2. Do I Need to Pay Higher Interest Rates as a Self-Employed Borrower?
No, interest rates are based on deposit size, credit score, and lender criteria rather than employment status.
3. How Can I Maximise My Mortgage Borrowing as a Business Owner?
If you retain profits in your company, some lenders will consider these when calculating affordability. Using a specialist lender can help increase borrowing capacity.
4. Can I Get a Mortgage If My Income Varies Each Year?
Lenders may take an average of the past two to three years to account for fluctuations in income.
5. Do I Need a Chartered Accountant to Get a Mortgage?
Not always, but most lenders prefer accounts certified by a chartered or certified accountant.
Take the Next Step – Speak to a Self-Employed Mortgage Expert Today
Securing a mortgage when self-employed does not have to be difficult—it just requires the right strategy and lender.
At Mather & Murray Financial, we work with self-employed professionals across the UK to find the best mortgage solutions for their unique financial situations.
Book a Call Back Today to get expert advice on your mortgage options.
