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Self Employed Mortgages Simplified

The key to self employed mortgage success is ensuring that your financial position is presented properly. The Mortgage Broker have helped hundreds of self employed customers get a mortgage and have specialists in understanding complex income for all types of scenarios and affordability levels. Whether you have clear credit or defaults, don’t worry – you are normal, and our team of specialists will ensure you get the mortgage you deserve.

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  • Self Employed
  • Contractors
  • Sole Traders
  • Partnerships
  • Ltd Company Directors
  • Agency Workers
4.38m Self Employed across the UK 94% Mortgage Approval Rate
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I'm self-employed, so more of a challenge, but the mortgage process has been seamless every time. They consistently find better deals and does more research than I could hope for. Highly recommend!

The Great Mortgage Myth – Self Employed Mortgages are Not More Expensive and Not Harder to Get.

A lot of people think it is much harder to get a self employed mortgage. This is simply not true. Yes of course, you have to structure your income properly and it can be more complex in providing documentation. However, with the right guidance and advice you can understand your affordability quickly and access very competitive self employed mortgage rates.

You have a far higher chance of approval if you structure your financial position properly.

Accessing documentation needs to be understood, and depending how long you have been self employed, you need to know how to structure yourself to get mortgage ready. The Mortgage Broker can remove the complications, explain exactly what is required, and get your a self employed mortgage rate

In practice it isn’t! Yes, it is slightly more complex in providing documentation, understanding affordability and providing proof of income. But don’t worry, we have specialists who can transparently advise you and The Mortgage Broker has access to mortgage lenders that offer the best self employed mortgage rates. Let us remove all of that leg work and get you the mortgage you need!

What documentation do Self Employed Mortgage Lenders require?

Whether one of, or all mortgage applicants are self employed you, you will need to provide the following documentation for a self employed mortgage application.

All Applicants:

  • Valid Identification (Passport or Driving License)
  • Proof of current address (Utility Bill dated within 3 months) and address history for last 3 years
  • Bank Statement (last 3 months)
  • Evidence of any Deposit

Self Employed Applicants:

  • 2+ years of certified accounts
  • SA 302 forms or a tax year overview from HMRC for the last 2-3 years
  • Contractors: May need to provide evidence of any future contracts
  • Company Directors: May need to provide proof of dividends paid out and any retained profits

How will a mortgage lender calculate my self-employed earnings?

You don’t need a specific self employed mortgage calculator, as the amount mortgage lenders will lend for self employed mortgage borrowing depends on specific income, deposit and business circumstances. Generally, you can borrow 4.5 to 5.5x your income, depending on how much deposit you have available initially.

  • Sole Traders: Lenders will typically look at your net profit over the past 2 to 3 years, and take an average.
  • Contractors: Earnings and future contracts.
  • Limited Company Directors: Earnings in the form of salary paid, as well as dividends and share of company net profit.

If earnings fluctuate quite a bit, then depending on the lender, they may use your lowest earning in a year as your baseline for affordability, or some may take an average of your monthly earnings averaged out over the year or longer period.

 

Why does it feel so tricky to get a Self Employed Mortgage?

At The Mortgage Broker, we understand that being self-employed comes with unique challenges, especially when it comes to securing a mortgage. You’re working hard to build your business, land your next contract or simply trying to keep up with your paperwork. Whatever your self employed situation, you deserve the opportunity to own your home with the right mortgage advice tailored specifically to your needs.

We know that self-employed customers feel requirements are more complex than those in traditional employment. That’s why our mortgage advisers are here to help guide you through the process. We offer market-leading mortgage advice designed with your situation in mind and have a panel of lenders that we work closely with that take a simple and common sense approach to self employment.

How do I access the best Self Employed Mortgage rates?

Whether you’re a freelancer, contractor, or small business owner, we take the time to understand your financial circumstances and work tirelessly to find the best mortgage options for you across our vast panel of lenders.

We are not only here to make the process simple for you, our job is to search over 23,000+ mortgage rates to find the best one for you! From the initial call through to securing your mortgage, our role as your mortgage adviser is to find and lock in the best rates, monitor the market and support you every step of the way.

Let us take care of all the details, explain everything along the way and ensure you achieve your goal of getting the mortgage you need at the best rate possible.

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How do I get my SA302 Tax Calculation and my Tax Year Overview?

A step-by-step guide to access and download your SA302's for your self employed mortgage application.

Go to HMRC Website and Sign In

You will need your Government Gateway credentials

Click Self Assessment

This will be in your HMRC account homepage

Get Your SA302 Tax Calculation

Continue to your SA302

Print and Save as a PDF File.

You can view your Tax Year Overview in the same place.

Self Employed Mortgages Made Simple

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How do you get a self-employed mortgage?

It’s a common misconception that there’s a specific type of mortgage for self-employed individuals. The reality is, you’re applying for the same mortgages as anyone else, with the same criteria for 90% of the mortgage. The key difference? You’ll need to provide clear proof of income to show lenders that your income is steady and reliable, with additional documentation to evidence it.

We understand that this can seem overwhelming, but don’t worry – just because you’re self-employed doesn’t mean you’re automatically going to be rejected or face much higher mortgage rates. With the right preparation, you can absolutely be approved for a mortgage and you will be able to get an affordable and sustainable monthly payment.

It’s natural that all self employed assume there are higher mortgage costs, but the good news is, there simply isn’t.

As long as you can provide clear evidence of your income and demonstrate that you can afford the repayments, there’s no reason why you shouldn’t qualify for the same competitive mortgage rates available to those in permanent employment.

There are, of course, other factors that influence your mortgage rate. Your deposit size and credit score will also play a big role. Generally, the larger your deposit, the better your rate, and a strong credit score opens up more options for you.

What can I do to improve my chances of securing a self employed mortgage?

At The Mortgage Broker, we’re here to help you through every step of the process, making sure you have the best possible chance of success. There are several ways you can strengthen your application:

Gather your SA302 forms – These forms show your income tax calculation for the year and are vital evidence of your earnings. Having the last two years ready before applying will keep the process smooth. Your adviser can assess tyour affordability indicatively before hand, but you will need to give as much guidance as possible on your earnings. However, you cannot proceed to a mortgage application without them.

Get an accountant – Certified accounts and structure advice from an accountant can be the best way to ensure a clear and smooth mortgage application. Whether you work with a mortgage broker who does the heavy lifting, or go directly to the lender yourself, there is no way of getting around the evidence of earnings that the mortgage lender requires.

Save as large a deposit as possible – A larger deposit can of course improve your chances of getting the best mortgage possible. The general rule is, the larger the deposit, the lower the rate, but of course you may want to increase your borrowing.

Improve your credit score – Like any mortgage application, a self employed mortgage is supported with a strong credit score.  There are simple steps you can take to improve your credit, like checking for mistakes, getting on the electoral roll, and paying off old debts.

How long do you need to be self-employed to get a mortgage?

While many lenders prefer you to have at least two years of self-employed income, it’s still possible to get a mortgage with less than that. If you’ve been self-employed for a shorter period, showing that you have experience in a similar role beforehand can help, but you will need to speak to your self employed mortgage advisor to understand the best lenders to approach.

Be prepared to provide as much information as you can, and don’t worry if you’re asked additional questions – we’re here to help you through it.

Why should I speak to a Self Employed Mortgage Broker

We know that a mortgage is a big commitment, and even a small difference in rates can cost you a lot of money over the life of your loan. At The Mortgage Broker, we’ll help you navigate the market, ensuring you find the best possible deal for your unique situation. Furthermore, we work with a number of mortgage lenders and we know how to structure self employed mortgage applications.

Our award winning self employed mortgage brokers can search and compare thousands of rates, work for you and ensure you have the best chance of success.

Our mission is to make the mortgage application process as easy as possible and enable you to access the best rates across the market and off the high street. You’ve already shown tremendous resilience and hard work in running your own business. Let us help you take that next step and secure the home you deserve.

Contact The Mortgage Broker for a Decision in Principle Today

0800 0320 316

Get started today with the mortgage broker. Don’t waste your time on self employed mortgage calculators, speak to an expert, understand your circumstances and access the best mortgage rates today.

Lending Criteria

You’ll need to provide evidence that you can afford the mortgage repayments before they agree to lend you the money.

What do I need to provide for a Mortgage?

If you want to prove your income for a mortgage, then you will most likely need to provide:

  • Full accounts for the business
  • Tax calculations and tax year overviews
  • Business bank statements

It will vary lender to lender, on how many of the above they will require.

Most lenders will insist on 2+ years of accounts and tax returns, however if you have less than this, it is still worth a conversation with one of our specialist advisers. They can guide you on what is possible with less, or at the very least give you information on what you need to aim for.

How to get a Self Employed Mortgage!

Quick questions and answers to understanding self employed mortgages.

A lot of people wonder if it’s harder to get a mortgage if you are self-employed. In actual fact it is quite similar, aside from the documents you need to provide to prove your income to a lender. Ensuring that your income, however complex, is presented clearly, is of paramount importance to a smooth self employed mortgage application.

No. Our service and process is exactly the same. Within the first call, we can advise you on what we need, get you set up with our simple interactive portal and quickly be able to establish your affordability options. The key is understanding your income, structuring it clearly and identifying the best mortgage lender for your needs. A self employed mortgage calculator won’t give you this information unless you break it down, so make sure you speak to a specialist. 

Lenders will see you as being self-employed if you own more than 25% of the business, from which you earn your income. You could be a sole trader or a limited company director. If you are not sure if you are technically self-employed or not, we will be able to assess your situation to advise whether a lender will class you as employed or self employed.

Self-Employed income counts towards your mortgage application if you earn more than 25% of your income through one of the following types of activity:

Sole Trader/ Freelancer
Contractor
Limited Company Director
Partner – You will need to own 25% or more of the business for it to count

No, the mortgage rates for self employed can be just as competitive as mortgage rates if you are employed. It all depends on your income, affordability and deposit amount. Your credit file will also count. You can search and compare all self employed mortgage rates through The Mortgage Broker without any affect on your credit rating, or any cost to you. 

A variable rate mortgage will be something to consider usually after your initial fixed term has ended. You can go on to this type of mortgage straight away, though many opt for the approach that offers the most stability to begin with. The main difference between this and a fixed rate is that the rate of interest for your monthly repayments will fluctuate with the interest rates. A bit of a gamble but if interest rates drop then so will your repayments.

There are various lenders on our panel, and we will search through all the available rates to not only find the cheapest, but also the most suitable and sustainable for your circumstances.

Simply put: you will need to provide evidence that you can afford the mortgage repayments before they agree to lend you the money – just like any other mortgage. Just lie any mortgage, it is important that you illustrate that you can afford the mortgage that you are applying for. If any of the applicants are self employed, then all documentation will be required, and the lender will stress test to ensure it is affordable. Stress testing is an internal check the lenders do, to ensure mortgage payments can still be met, if the rates were to increase between 2 to 3%.

  • ID
  • Proof of Address
  • Bank Statements (last 3 months)
  • Evidence of Deposit
  • 2+ years of certified accounts
  • SA 302 forms or a tax year overview
  • (Contractors) Evidence of upcoming contracts
  • (Company Directors) Dividend payments and retained profits

Richard and his team were absolutely fantastic. They swiftly secured me an excellent deal with the bank and provided a really personal service, keeping me updated at every step and discussing my unique needs in great detail. My situation is particularly tricky as I am self employed and work extensively abroad, a fact that the banks generally cannot and will not deal with. Superb service.
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