- >
- Mortgage comparison>
- Self employed mortgages
Compare Best Mortgages for Self-Employed
Self-employed mortgages
What do mortgage lenders class as self-employed?
Freelance and contract workers, sole traders and those who earn their primary income from a business they own 20% or more of, are all classed as self-employed.
Limited company directors are also considered to be self-employed for mortgage application purposes, even if they are an employee of their own company, and treated as employed by HMRC.
How to find the best self-employed mortgage rate for you
Add your details
Compare deals with a recommendation
Get your mortgage with Mojo
What's changing for self-employed mortgage applicants?
The mortgage market is in the middle of a significant regulatory review, and some changes are already making a difference:
Stress test rules relaxed. The FCA reminded lenders they have flexibility in how they apply interest rate stress tests. Many lenders acted on this, meaning borrowers, including self-employed applicants, can now borrow around £30,000 more than before.
More rule changes coming in 2026. The FCA is consulting on reforms specifically designed to help self-employed and other underserved borrowers, including more flexible affordability assessments and better recognition of irregular income. Changes are expected later in 2026.
1 year's accounts: more lenders accepting it. Not a new rule, but an increasing number of specialist lenders will now consider just 12 months of accounts, useful if you've recently gone self-employed.
SA302s remain the gold standard. HMRC tax calculation documents are the most universally accepted proof of income. Keep them up to date before applying.
Limited company directors: salary plus net profit. Some lenders now consider your share of net profits rather than just salary and dividends, which can increase how much you're able to borrow.
Is it difficult to get a mortgage if you're self-employed?
It’s no more difficult to get a mortgage than it is for an employed person, so long as you’re still able to meet the mortgage lender’s requirements.
Whilst you’ll need to show more evidence of your income than the average employed individual, there is no other difference in how you apply, or the mortgages available to you.
Self-employed applicants will typically benefit from a mortgage broker who understands lender requirements and can find the best options for limited company directors, sole traders, and contractors.
What documents do I need for a self-employed mortgage?
Documentation required generally to apply for a mortgage
Photo ID - Passport or driving license
Proof of address - Utility or council tax bill
Bank statements - covering 3 months
Payslips - covering 3-12 months, depending on how long you have worked in the industry and the lender’s preference
If you are paid bonuses, commission, or any type of shift allowance that is not included on your payslips, A P60 will usually be needed to show these
Proof of deposit origin - this can be gifted but must be evidenced as such
Additional requirements if self-employed
Bank statements - May need 6 months - 3 year’s worth depending on the lender. If you are a business owner then both personal and business bank statements will be require
Proof of income - This will vary based on your specific self-employed income (see below)
Sole trader, freelancer or company *director or partner
1-3 years’ accounts (which must be certified by a qualified accountant) and tax calculations from HMRC. *Directors and partners may also need proof of dividends and retained profits, depending on the lender
Contractor
As above, or proof of your day-rate and contracts covering at least 12 months previously, and typically 12 months ahead – which is needed will depend on the calculation method your lender uses
CIS/Umbrella contractor
You will typically be treated as employed, but may need to show 6 months of payslips rather than 3
Do you have to pay higher mortgage rates if you’re self-employed?
Not by default, no. If you’re able to meet the lender’s criteria as well as an employed person, then how you earn your money is not going to change your interest rates, so long as you can prove your income is stable and ongoing.
In reality, it’s your overall financial picture that will influence the sort of interest rates you are offered, this includes your affordability, credit record and how much deposit and/or equity you have available.
If it turns out that a specialist lender has more suitable products for you, you might find that their interest rates are slightly higher than those you would find on the high street, as the lenders are generally willing to take on more risk.
How do lenders calculate my self-employed income?
Self employed income is treated slightly differently to employed income when calculating how much you can borrow. It also varies slightly depending on the type of self-employed worker you are, and the lender, as they don’t all use the same methods.
If you’re a freelancer or sole trader, the majority of lenders will take an average income based on the last two or three years of net profits. There are lenders that will look at as little as 12 months worth of net profits, so long as you have the tax calculation to back this up, however, typically only lenders that specialise in self-employed mortgages will consider this.
Another thing to be aware of is that no matter how many years of accounts you are able to provide, if the most recent year has seen a drop in profits, most lenders will only be willing to base your loan on that year’s figures.
Limited company directors’ income calculations tend to vary a bit more depending on the lender’s preferred style. Most will use an average of the past few years salary and dividends, however, some are willing to look at your share of the net profits.
Contractors are also looked at differently depending on the lender, and whilst some will use the same method as any other freelance worker, if you work on a day rate basis, some lenders will annualise this to create a salary-type figure.
What is a self-certification mortgage?
Also known as “self-cert”, these notorious mortgages allowed borrowers to self certify their earnings without the need to provide any tax records as proof. This type of mortgage was banned by the Financial Conduct Authority (FCA) in 2009 following concerns that over-burdened mortgage borrowers had contributed to the financial crisis of 2008.
How to improve your chances of getting a self-employed mortgage
Save a large deposit
Prepare your documentation ahead of your application
Seek advice from a broker
Improve your credit score
Avoid non-standard construction properties
How to find the best self-employed mortgage
If you’re self-employed you may be wondering how to pick the best type of mortgage for your circumstances. The good news is, you generally have access to the vast majority of mortgage types and deals that all other applicants do, such as:
Mortgages for first-time buyers
Fixed-rate, tracker, variable and other types of interest rate
Self employed mortgage FAQs
Can I get a mortgage with 1 year's accounts?
Yes, some lenders will consider a self-employed mortgage with just 1 year's accounts, though most prefer 2-3 years. The lenders willing to accept 1 year tend to be specialists, so it's worth using a broker who knows which ones to approach. You'll still need your SA302 tax calculation from HMRC to back it up.
Is it harder to get a mortgage when you're self-employed?
No, getting a mortgage when you're self-employed isn't harder, it just involves more paperwork. You'll need to prove your income with accounts or tax records rather than payslips, but you're eligible for the same deals and rates as employed borrowers. A mortgage broker like our broker partner, Mojo Mortgages, can help you find lenders whose criteria fit your situation.
Will lenders consider self-employed income from abroad?
Some might be comfortable with this, so long as you meet the mortgage requirements in terms of how long you would need to be present in the UK to purchase a house here. You would also need to be paid in GBP in most cases.
How much can I borrow if I am self-employed?
The amount you can borrow is not influenced by the type of income you earn, only how much you’re able to afford to repay. Being self-employed should therefore not mean that you can borrow any less than other applicants.
In some circumstances, it’s possible that a lower multiple of your income may be offered, but this is typically due to a lack of time spent in a self-employed role, rather than explicitly because you are self-employed.
What are the best mortgage lenders for self-employed borrowers?
The best lender for you depends on how you're set up (sole trader, limited company director, contractor) and how many years of accounts you have. High street lenders like Halifax, Nationwide and Barclays all consider self-employed applicants. Specialist lenders tend to be more flexible if your situation is less straightforward. The easiest way to find the right one is through a whole-of-market broker like Mojo Mortgages, who can compare options from 60+ lenders and match you to the right deal.
About the author
Didn’t find what you were looking for?
Use the links below to find out about other mortgages
We’ve been featured in
