Self-employed
Self-employed mortgages, designed for individuals who work for themselves
Self-employed mortgages
A self-employed mortgage is a property finance loan designed for individuals who work for themselves, such as sole traders, freelancers, or company directors.
Instead of standard payslips, mortgage lenders assess your income using documents like tax returns, business accounts, or contracts. This approach helps ensure your mortgage is tailored to your unique financial circumstances as a self-employed applicant who may not benefit from consistent income on a monthly basis.
Is it difficult to get a self-employed mortgage?
Being self-employed doesn’t have to make getting a mortgage difficult. With well-prepared accounts, tax returns, and the right documentation, many self-employed people secure great mortgage deals every day.
Many lenders recognise that self-employed applicants can have strong, reliable incomes, even if their finances look a little different from those of salaried employees. With the right preparation, self-employed applicants are viewed just as favourably as anyone else.
A knowledgeable mortgage advisor who specialises in self-employment will understand the complexities of your income, and can help present your finances clearly to lenders who specialise in supporting self-employed applicants.
What if I have less than three years of trading?
Bennison Brown work with a number of mortgage lenders who will often accept self-employed borrowers with just one year’s worth of accounts if you can prove you have contracts for the future and a consistent track record of work.
Additionally, putting down a larger deposit can make lenders even more accommodating, as it reduces their risk and shows your commitment. Our advisors will help you explore all available options to find a solution that fits your unique circumstances, maximising your chances of approval.
What are the pitfalls of self-employed mortgages?
- Not having the correct documentation available
Every lender has specific criteria for proving your income, including how recent your documents are and how many years’ history they require. Knowing these requirements upfront prevents delays in your application.
Mortgage lenders will also have their own requirements for income evidence, including how recent and how many years of documents are needed. Understanding this in advance helps avoid delays in your application. - Knowing what income to provide
The way lenders calculate your income can vary significantly. One lender might use your salary plus dividends if you’re a limited company shareholder, while another may include your salary and a percentage of the company’s net profit. These different approaches can give you greater flexibility and may even increase the amount you’re able to borrow, depending on your circumstances. - Recent changes
If you’ve recently become self-employed or changed your business structure, for example from sole trader to limited company, some lenders will still consider your application, though your options may be more limited. Understanding lender requirements in advance helps ensure your employment history is acceptable and increases your chances of a successful application.
Self-employed mortgages: avoid the pitfalls
At Bennison Brown we can give you help and guidance to help you navigate the mortgage market as a self-employed applicant.
To avoid the pitfalls of this type of mortgages, start by keeping your accounts and tax returns up to date and well-organised. Gather all the necessary documentation before you apply, and check lender requirements in advance so you’re fully prepared.
Working with our expert mortgage brokers can help you present your finances clearly and connect you with lenders who specialise in supporting self-employed applicants, making the process smooth and successful.
Organise a free consultation
Leave us your details or give us a call on 0207 427 6067.
We look forward to speaking to you soon. We don’t use your details for marketing, only to get in touch and speak to you about your requirements.
Let us guide you
Download our step by step guide
Mortgage FAQ
Quick answers and mortgage calculator
About Us
Find out more about the Bennison Brown team