Mortgage Advice for Self-Employed Buyers: What Lenders Really Look For

If you’re self-employed and thinking of buying a home, you’ve probably heard the same story: “It’s harder to get a mortgage when you work for yourself.” While there’s some truth to that, the reality is far more encouraging.

With the right preparation, the right documents, and the right adviser, getting a mortgage as a self-employed person in the UK is absolutely achievable.

In this guide from Your Mortgage Manager, we’ll walk you through exactly what lenders look for and how to boost your chances of approval.

🧾 What Counts as Self-Employed?

You’re generally considered self-employed if you own at least 20–25% of a business and don’t earn a regular PAYE salary from an employer. This includes:

• Sole traders

• Limited company directors

• Freelancers and contractors

• Partnerships

  
  

No matter your setup, lenders want one thing: proof that you earn enough to afford the mortgage—and that your income is stable.

🔍 What Do Lenders Really Look For?

Here’s a breakdown of what mortgage lenders check when assessing self-employed applicants:

1. Proof of Income

Most lenders want to see:

• 2 years of accounts or SA302s (your HMRC tax calculation forms)

• Some may accept 1 year of accounts if you have a strong profile

• Accountants' references can also help

👉 Tip: The more years you’ve been trading, the better—but we work with lenders who can help even with 1 year’s history.

2. Affordability and Expenses

Just like with any mortgage, lenders will look at your:

• Monthly expenses

• Debts (credit cards, loans)

• Children and dependents

• Future income sustainability

They’ll also assess your debt-to-income ratio to make sure repayments are manageable.

3. Consistency and Stability

Lenders want to know your income isn’t a one-off spike.

If your profits have grown year-on-year, that’s great. But if there’s been a dip, you may need to explain why. Having solid projections or ongoing contracts can help.

4. Credit History

While being self-employed doesn’t directly impact your credit score, it’s still a major factor in your application.

✅ A clean credit file = more options

❌ Missed payments, defaults, or CCJs = limited options, but not the end

We work with specialist lenders who are open to those with adverse credit or complex income streams.

🧠 Self-Employed Mortgage Advice: What You Should Do First

Here’s how to make yourself “mortgage ready” as a self-employed applicant:

• ✅ Get your accounts up to date and filed

• ✅ Download your SA302s and tax overviews from HMRC

• ✅ Speak to an accountant (especially if you’re a company director)

• ✅ Avoid new credit or large business expenses just before applying

• ✅ Register on the electoral roll and keep addresses consistent

🏠 How to Get a Mortgage When Self-Employed: Step-by-Step

1. Speak to a specialist broker (like us!)

2. Review your documents and income

3. We search the market – including lenders who accept complex or non-standard cases

4. Apply with the right lender – we handle the paperwork

5. Get approved and secure your home with a mortgage that fits your circumstances

   
   

🎯 Why Use Your Mortgage Manager?

We specialise in helping self-employed borrowers find mortgage deals that work—whether you’ve been trading for years or just getting started.

✅ Access to self-employed-friendly lenders

✅ Help for freelancers, sole traders & limited company directors

✅ Support with complex income, dividends, and retained profits

✅ Clear advice and no jargon

✅ Personal service and ongoing support

💬 Ready to Get Started?

We’re here to help make sense of self-employed mortgages—and get you one that suits your life.

📞 Call us: 0115 9902551

🌐 Visit us: www.yourmortgagemanager.co.uk📩 Email: info@yourmortgagemanager.co.uk

Your Mortgage Manager

Making mortgages make sense—whatever your income looks like.