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Self-employed mortgage requirements: Everything you need to know.

20 Jul 2023 | 2 min

Being your own boss comes with plenty of challenges, but getting a mortgage shouldn’t be one of them. While being self-employed can be a barrier to borrowing for some lenders, there are plenty of ways to fund your property ambitions if you fall outside of the traditional 9 to 5.

Whether you’re looking to borrow for the first time, or need to remortgage to upgrade your property or find a better deal, we’ve pulled together the key self-employed mortgage requirements to help you find finance without the fuss.

What do we mean by self-employed?

Whether you freelance, work as a contractor or run a business, you’re probably classed as self-employed. Your income may not be the same month-on-month and it’s likely that you have costs you need to take into account to work out what you earn in a year.

What’s different for someone who’s self-employed when it comes to applying for a mortgage?

Most lenders will need a good run of payslips as evidence when completing an application, which someone who’s self-employed is unlikely to have. You might have an income that varies month by month, or you might not have been trading for long, so it’s likely you’ll have to pull together some other forms of evidence. You’ll most likely need:

  • Proof of ID and address
  • Your bank details
  • Evidence of your business income and expenditure
  • SA302 forms or a tax-year overview 
  • Evidence of profits or dividends if you own a business
  • Proof of your upcoming work pipeline if you work as a trader or contractor
  • Proof of accounts certified by a registered accountant

You might also need to show a lender your operating costs, travel costs, spending on office rental and supplies, credit card and loan statements and information on your car or van lease. We’ve created an  application checklist  that can help you get the right documents together.

Do all mortgage lenders cater for self-employed people?

Although there are many lenders that will consider self-employed customers for a mortgage, those with ‘tick box’ mortgage application processes can sometimes struggle to see your suitability. Here at Together, we’re willing to look beyond your employment status and will ensure to take your whole financial situation into account. If you’ve come across a lender that won’t accept your variable income or a short period of trading, it’s definitely worth shopping around. While it can be trickier, it’s not impossible –  read our blog on mortgages in the gig economy  for more reassurance.

I already have a mortgage but need to make home improvements / get a better deal. Is that possible?

Remortgaging when you’re self-employed is pretty much the same as any other remortgage, but you might need to bring different paperwork to secure your deal. If you’ve already been approved for a mortgage since you’ve been self-employed, the process should be even easier.

Read our blog on tips for remortgaging  when you’re self-employed so you’ve got everything lined up that you’ll need.

Ready to browse some of the self-employed finance products available at Together? Find out more on our  self-employed mortgages page.

Any property used as security, including your home, may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Articles on our website are designed to be useful for our customers, and potential customers. A variety of different topics are covered, touching on legal, taxation, financial, and practical issues. However, we offer no warranty or assurance that the content is accurate in all respects, and you should not therefore act in reliance on any of the information presented here. We would always recommend that you consult with qualified professionals with specific knowledge of your circumstances before proceeding (for example: a solicitor, surveyor or accountant, as the case may be).

Lending decisions are subject to an affordability/creditworthiness assessment.

All content factually correct at the time of publishing.

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