How To Get A Mortgage As Self Employed

With latest data revealing that 80% of self-employed people feel penalised or unfairly treated when applying for a mortgage, it’s no surprise that if you’re self-employed and are seeking a mortgage, you probably have 101 questions:

“How do lenders check my income?” “Do I need to show two years of accounts to get a mortgage?” and “Can I get a mortgage if my income varies a lot from year to year?”

Don’t worry – we have the answers to all of your questions.

Whether you’re a sole trader, freelancer, or company director, it’s important to understand how lenders will assess your earnings, what documentation they’ll require, and the best lenders that will offer you the most competitive deals.

In this article, we’ll guide you through all the steps to how you can get a self-employed mortgage, the documents you’ll need at hand, and how much you can expect to borrow. Let’s jump in.

What Do I Need To Provide To Get A Mortgage As Self Employed?

It’s important to note that mortgages for the self-employed can differ from mortgages for the employed. The main reason for this is down to the increased risk that lenders will associate with a self-employed income structure.

In short: Lenders will want reassurance that your income is stable and consistent.

Providing the right documentation is crucial when applying for a mortgage as a self-employed applicant. Lenders will typically request a range of self-employed mortgage documentation to verify your income. In most cases, you’ll need to supply at least two years’ worth of financial records to demonstrate income stability.

The documents you will need include:

• SA302s and Tax Year Overviews from HMRC (usually covering the past two years)
• Full company accounts (for limited company directors)
• Business and personal bank statements (usually covering 3 to 6 months)
• Proof of identity (driving licence, utility bill, etc)
• Evidence of a deposit (savings statements or gifted deposit confirmation)

Crucially, providing clear and accurate documentation for your mortgage applications can significantly speed up the process and improve your chances of approval.

Working with a trusted mortgage broker – like Boon Brokers – can make the process much easier by helping you organise and submit all the necessary documentation correctly and efficiently.

How Many Years of Self Employment is Needed for a Mortgage?

Approval remains a key challenge for self-employed mortgage seekers, with a 2025 report by LendInvest and Opinium found that one in three self-employed applicants are turned down for mortgages – more than double the rejection rate of employed applicants (14%).

As a result, one of the most common questions we get asked here at Boon Brokers is: “How long do I have to be self-employed before I can apply for a mortgage?”

Most lenders will ask to see two full years of self-employed accounts. This allows lenders to take a holistic look at your income and the ability to calculate a reliable average over these years.

With that being said, it still is possible to get a mortgage with only one year of self-employment, particularly if you’ve transitioned from a similar PAYE role or can provide future contracts or other evidence of consistent income.

It’s important to note that these applications are more complex and may limit your lender options, but they are still available.

An experienced self-employed mortgage adviser can guide you towards lenders who accept shorter trading histories and help tailor your lender search for your mortgage needs.

How Much Can I Borrow Self Employed?

If you’re self-employed and are thinking about securing a mortgage, then the first question you might ask is: How much can I borrow for a mortgage if I am self-employed?

In truth, the exact amount you will be able to borrow will directly depend on your income, income structure, and your chosen lender’s affordability criteria.

Lenders usually offer a multiplier, typically around four to five times your annual income. For example, let’s say you’re a sole trader with a net profit of £40,000 per year. Most lenders will consider lending:

• 4 x your income = £160,000
• 5 x your income = £180,000
• 5 x your income = £200,000

With a £25,000 deposit, your total budget could range anywhere from £185,000 to £225,000 depending on the lender and your credit profile.

It is important to note, however, that the exact multiplication a lender will offer you will vary depending on your credit score, monthly expenses, existing debts, size of your deposit, and your chosen lender.

Do Self-Employed Mortgages Have Higher Mortgage Rates?

There’s a common misconception that mortgage rates for self-employed applicants are always higher than for those in traditional employment.

In reality, lenders base their interest rates primarily on two factors: Loan-to-Value (LTV) and credit history.

A lender won’t increase your interest rate simply because of your employment type, income structure, or profession. However, if you have adverse credit – such as late payments, defaults, or County Court Judgements (CCJs) – you may be offered different mortgage products, often referred to as sub-prime products, which come with higher rates to reflect the increased risk.

The key to accessing the most competitive deals lies in preparation:

• Keep your credit file clean and up to date
• Ensure your income is well-documented with supporting paperwork
• Maintain a strong deposit to reduce your LTV ratio

Having an expert whole-of-market mortgage adviser on your side can make a significant difference. They can help compare and connect you with lenders who offer favourable rates, even if your income is complex.

Difference Between Sole Trader, Partnerships, Limited Company Directors for Mortgages

It’s important to note that there are various types of self-employed employment and your exact trading structure will play a big role in how lenders assess your income. Each structure comes with slightly different requirements when applying for a mortgage.

Sole Traders

If you’re a sole trader, lenders will assess your application based on your net profit in order to gauge your income after expenses. As such, you’ll typically need two years of SA302s and Tax Year Overviews. Depending on your chosen lender, they will typically use either the average of the last two years of accounts, or the most recent year if your income is rising steadily.

If you’re organised and have up-to-date records of your business accounts, then applying for a sole trader mortgage is usually a straightforward process

Partnerships

Partnerships, particularly Limited Liability Partnerships (LLPs), can be among the more complex self-employed arrangements for lenders to assess.

In most cases, your income will be drawn from your share of the partnership’s net profit, which is relatively straightforward for lenders to review. However, complications can arise depending on the partnership’s liability structure.

For example, professionals such as General Practitioners may have a financial liability to the partnership, which can affect how lenders assess affordability.

It’s important to note that each lender will have their  own criteria and approach to calculating income from partnerships, so outcomes can vary significantly between providers.

When it comes to documentation, lenders will typically request your personal Tax Calculations and Tax Year Overviews. They may also ask to review Partnership Bank Statements to better understand the business’s financial performance.

To ensure that you’re fully informed on what your chosen lender will require, it is best practice to work with a trusted mortgage broker. A dedicated mortgage adviser will be able to guide you through each stage and keep you informed on all the documentation you will need to present.

Limited Company Directors

Crucially, if you own more than 25% of a Limited Company, you will be classed as self-employed by mortgage lenders.

Limited company directors are assessed slightly differently as they typically take their income by way of salary and dividends for tax purposes.

As such, Lenders will usually have to consider both your salary and dividends when determining your income. That being said, some specialist lenders may be willing to look at retained profits within the company, especially if they are consistent and accessible.

It is important to note that other factors, such as Director’s Loans or personal guarantees can all affect the overall affordability calculations.

To meet the company director mortgage requirements, you’ll need company accounts signed by a certified accountant and corresponding personal tax documentation.

What Income Will Be Accepted for a Self-Employed Mortgage?

As we’ve already touched upon, there are a variety of different income sources that lenders will accept. The exact types will be dependent on your type of self-employment and always correspond to the documentation/proof that you will be able to provide.

Accepted income sources include:

• Operating profits (for sole traders and partnerships)
• Salary and dividends (for limited company directors)
• Retained profits, if considered by the lender
• Unusual income, such as commissions or irregular contracts
• Tax credits, such as working or child tax credit

Working with a trusted whole-of-market broker can help present you with the best possible lenders that match your mortgage needs. This can often include providing insights on specialist lenders with flexible criteria or self-employed specific mortgage products.

Self-Employed Documents Required for a Mortgage

Preparation is key, especially for self-employed mortgage applications.

Providing the right documentation and proof of income is crucial to securing a mortgage as a self-employed applicant. Lenders expect accuracy and consistency, and any missing paperwork can lead to delays or even derail your application entirely.

The most commonly requested documents for self employed mortgage applications include:

• SA302s and Tax Year Overviews (usually for the last two years)
• Company accounts prepared by a qualified accountant (for limited companies)
• Verified accountant’s letter, especially if your business has changed recently
• Bank statements for both personal and business accounts
• Identification and address verification (e.g. passport, utility bills)

If you’re thinking about applying for a mortgage as a self-employed applicant, early planning can save you a lot of time and stress. Speaking to a professional mortgage adviser early in your application process can help structure a ‘plan of attack’, providing you with a relaxing time period to prepare all the required documentation you’ll need.

How Can Self-Employed Individuals Improve Their Chances of Getting a Mortgage?

With self-employment on the rise again in 2025 – reaching 4.4 million people in the UK according to Statista – more individuals are attempting to apply for mortgages with complex or non-traditional income structures. As such, many self-employed applicants are facing the challenges of the rigid ‘one-fits-all’ lending criteria.

Fortunately, there are several ways in which self-employed applicants can make their mortgage application more appealing to lenders.

Lenders will always assess, what we call at Boon Brokers, the “usual suspects”. This includes your credit score, income, expenditure, and loan-to-income ratio. Strengthening these areas can reduce your risk to a lender, making your application far more appealing.

Here are some practical steps to improve your mortgage prospects:

• Improving Your Credit Score

Making concerted efforts to pay off existing debts, make all payments on time, and keeping your credit utilisation low can help bolster your credit score. It’s important to note that while being self-employed doesn’t directly affect your credit score, lenders will often examine self-employed applicants more closely – so a strong credit history is essential.

• Working With a Qualified Accountant

Documentation and proof of income accounts are crucial. As such, many lenders prefer, or even require, professionally prepared accounts. Submitting figures signed off by an accountant can boost your credibility and reduce the likelihood of questions or delays.

• Saving for a Larger Deposit

Your loan-to-value percentage is directly influenced by your initial deposit. Naturally, lowering your loan-to-value ratio with a bigger deposit will reduce the lender’s risk and increase your borrowing potential. It may also help you access more competitive interest rates.

• Get Your SA302s and Tax Year Overviews in Order

These HMRC documents are critical for verifying your income. Ensure they’re accurate, up to date, and consistent with any submitted accounts.

• Keep your spending under control

Managing your expenditure can be a massive advantage in proving your financial reliability. As part of your affordability assessment, lenders will look at your monthly outgoings. As such, every concerted effort to reduce any unnecessary expenses in the months leading up to your application can strengthen your affordability profile.

Lender Requirements for the Self-Employed

While each lender sets their own self-employed mortgage criteria, there are some common threads.

Generally, lenders will require two years of accounts or tax documentation, although some will consider one year with strong evidence.

You’ll also need to meet minimum income thresholds, prove affordability, and have a clean or well-managed credit record. The more robust your financial profile, the more likely you are to qualify for competitive rates.

So, who are the best mortgage lenders for self-employed applicants?

The best lender will always depend on your mortgage requirements and financial goals. Both high-street names and specialist lenders offer unique advantages, with specialist lenders being the standout choice for many self-employed applicants today. This is mainly due to more flexible terms, particularly for those with complex or unusual income structures.

Working with a whole-of-market broker can help you search and compare lenders across the UK. At Boon Brokers, we have access to over 90+ leading lenders, matching your requirements to the lender that can offer you the most competitive mortgage products on the market today.

Speak to a Self-Employed Mortgage Expert

At Boon Brokers, we specialise in helping self-employed individuals secure the mortgage that is right for you.

Whether you’re a sole trader, contractor, or limited company director, our dedicated advisers provide you with fee-free expert advice, keeping you informed through every step of your mortgage application.

As a trusted whole-of-market brokerage, we work with a wide range of mortgage lenders for the self-employed, placing us in the best possible position to match you with the right mortgage deal, no matter your circumstances.

Contact Boon Brokers today and speak to a dedicated self-employed mortgage adviser to start your mortgage journey right.