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Mortgages for the self-employed.
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There are more than 4 million self-employed people in the UK – that’s roughly 13% of the working age population.
If you work for someone else (i.e. you are an employee), mortgage lenders will often accept your income for affordability after just one month.
For those of us who have taken a risk and become self-employed, those same mortgage lenders will often require your business to be established for 3 years before considering your income – and then on top of that, rather than use your current income, they will instead take an average of your earnings over that three year period.
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In the following pages, we use the term self-employed to cover all types of self-employment, but we recognise that sole traders, company directors and contractors have different legal and accounting requirements.
Over the years we have developed an expertise in understanding and helping all types of self-employed individuals to find the right mortgage solution to meet their needs.
As specialists, we have a keen understanding of the lending market and know exactly which lenders to approach if you need to:
· maximise the amount you can borrow;
· are new to self-employment; or
· changed status from a sole trader to a company
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Integrity is at the heart of our approach to offering mortgages. We prioritise honesty in every aspect of our work, ensuring that our clients receive transparent and truthful guidance.
Navigating financial decisions can be overwhelming, but we can make it simple for our clients.You can expect clear, concise explanations that cover the intricacies of mortgages.
Through in-depth conversations, we work closely with our clients to understand their specific circumstances, enabling us to craft bespoke mortgage solutions that complement your aspirations.
Read some of our FAQ's below to help you on your journey to getting your mortgage.
For sole traders:
Most lenders will take an average of:
Your last two or three years income figures you have reported to HMRC;
But some lenders will consider:
Your last year’s income in isolation which can boost the amount you can borrow
For company directors:
Most lenders will take an average of:
Your last two or three years income figures you have reported to HMRC; or
Your salary and dividends for the last two or three years
But some lenders will consider:
Your last year’s income in isolation which can boost the amount you can borrow
Your salary plus the net profit of the company, as your personal total income
Yes, it's possible to get a mortgage if you're newly self-employed, but the requirements may be stricter. Lenders may require a longer track record of self-employment or additional documentation to verify your income stability.
Required documents typically include tax returns (usually the last two to three years), business accounts, bank statements, and proof of identity and address. Additional documents may be needed depending on the lender's specific requirements.
Not necessarily. We will work to secure the best rates in the market and these will often be the same rates as an employed applicant could access. If your circumstances mean that we need to apply to a specialist lender, the rates may not be quite as competitive.
If we can’t help, no-one can. We won’t leave you hanging around, not knowing. We have 24 years experience of helping clients find the best mortgages behind us, so we know the market and the art of the possible.
Get in touch to discuss your situation. You’ll be sure of a positive, helpful response.
Your future,
our guidance.
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