Can I Get a Mortgage If I'm Self-Employed?

What Does 'Self-Employed' Mean to a Mortgage Lender?

From a lender's perspective, you're classed as self-employed if you own more than 20–25% of a business and earn your income from it, whether you're a sole trader, limited company director, or in a partnership. You might run your design studio, work as a freelancer, operate as a contractor, or be a landlord with rental income. What matters most to the lender isn't your job title - it's your income's consistency, traceability, and stability over time.

What Do Lenders Look For in Self-Employed Mortgage Applications?

Lenders want to see that your income is reliable and sustainable. Because self-employed earnings can fluctuate from month to month or year to year, underwriters look for patterns over a longer period. Most lenders require at least two years of accounts or tax returns to assess average earnings, although a few may accept just one year if other parts of your application are strong, for example, a large deposit or low debt. Ultimately, lenders need to feel confident you can repay the mortgage over the long term.

The Key Documents You'll Need

If you're applying for a mortgage as a self-employed buyer, you'll need to provide specific documentation. This usually includes two to three years of SA302 forms or HMRC tax calculations, corresponding tax year overviews, bank statements, and, in some cases, certified accounts prepared by an accountant. If you're a company director, you may also need to show dividend payments and retained profits, particularly if you pay a low salary but draw additional income from the business. Keeping your records up to date and professionally prepared can make a significant difference to how your application is viewed.

What About Contractors or Freelancers on Irregular Income?

If your income is contract-based or seasonal, lenders usually want evidence of future work, such as ongoing contracts, letters of engagement, or a consistent work pattern over recent years. Freelancers with several years of steady income may be treated similarly to sole traders. Some lenders even have specialist criteria for contractors in fields like IT or engineering, where income can be calculated on a day rate rather than traditional salary models. Again, the key is consistency - showing that your earnings aren't just one-off or temporary.

Do You Need a Bigger Deposit If You're Self-Employed?

While a larger deposit will always strengthen a mortgage application - whether you're employed or self-employed - it's not a strict requirement. Most lenders offer mortgages with 5% to 15% deposits, though rates are typically better if you put down 10% or more. If your income is more complex or you've only been trading for a short time, offering a larger deposit can help reduce risk in the eyes of the lender and improve your chances of approval. That said, many self-employed buyers secure mortgages with standard deposit levels - it all comes down to preparation.

How to Improve Your Chances of Getting Approved

Start by ensuring your accounts are accurate, complete and submitted on time. Work with a qualified accountant who understands mortgage requirements and can present your income in the best light. Keep personal and business finances separate, and minimise large or unexplained expenses that might reduce your net profit. Check your credit report in advance, repay outstanding debts where possible, and avoid making multiple applications in a short space of time. And most importantly, speak to a broker or mortgage adviser who understands self-employed applications and can recommend the most suitable lenders.

Confidence Comes from Preparation

Yes - you can get a mortgage if you're self-employed. It might take more documentation and careful planning, but it's achievable. The key is to know what lenders want, get your finances in order, and work with experts who can advocate for you. Whether you're buying your first home, moving up the ladder, or investing in property, Farrell Heyworth is here to help make the process smooth, professional and stress-free - whatever your employment status.