Self Employed Mortgages

You can get a mortgage if you’re self-employed, but you’ll have to go through the same affordability and credit assessment checks as any other borrower. You may also find that some lenders are wary unless you can provide them with a solid record of your accounts.

Different lenders have different lending criteria, so don’t give up if you have applied directly to a bank or building society. Some lenders calculate the amount you can borrow based on several years’ income; others base it on your previous year of trading, others will accept your latest year end figures

Either way, you’ll need to show how much income you’ve reported to HMRC and how much tax you’ve paid.

HMRC will consider you a sole trader if you’re working for yourself, taking on different clients and being responsible for your own business. Lenders will see you as self-employed if you own more than a 20% share of the business that pays you your income. It’s possible to be both self-employed and employed, if you have a job but run a side hustle outside of office hours. 

Lenders apply different rules depending on if you’re self-employed, a partner or the owner of a limited company. It’s important that you know which applies to you, so you can have the right paperwork to hand. 

We know the self employed mortgage market inside out. Applying for one maybe easier than you think.