Best self-employed mortgage deals

What is a self-employed mortgage?

There’s no special “self-employed mortgage” product, it just means applying for a standard mortgage while working for yourself. For the purposes of a self-employed mortgage, lenders will usually class you as self-employed if you own more than 20% to 25% of a business, and that business serves as your main source of income.

The key difference is how lenders check your income. Instead of payslips, they’ll usually ask for your accounts, tax returns or SA302 forms. They want to see that your income is reliable, even if it goes up and down.

Whether you’re looking for a fixed rate, tracker, offset or interest-only mortgage, there are plenty of deals out there that suit self-employed borrowers.

Why choose a self-employed mortgage?

A self-employed mortgage is designed to take your full income into account - even if it comes from different sources. That includes:

• Sole traders using net profits
• Limited company directors (salary + dividends)
• Contractors with short or rolling contracts
• Freelancers with multiple clients

The main benefits are:

• Access to a wide range of mortgage deals
• Specialist lenders who understand self-employed income
• Flexible documentation requirements (with the right advice)

How self-employed mortgages work

Lenders will want to know:

• How much you earn
• How stable your income is
• What your outgoings are
• How long you’ve been trading

Lenders generally prefer that your accounts have been prepared by a registered accountant. If you have less than two years’ accounts, you should still prepare as much as you can with proof of your earnings and upcoming contracts, as well as your accounts for the last year. Not all lenders require two years of earnings for you to qualify for a mortgage, so you may still be able to secure a good deal even if you’re recently self-employed.

You'll need to provide:

• SA302 forms or tax year overviews
• Full accounts (ideally from a chartered accountant)
• Bank statements
• Details of regular work or contracts

We’ll help you put together the right paperwork and match you with lenders who are used to working with self-employed applicants.

Who can get a self-employed mortgage?

If you’ve been self-employed for at least 12 months and can prove your income, you’ve got options. You’ll usually need:

• A good credit history
• A deposit (the more the better)
• Accurate, up-to-date financial records

Limited company directors might need to show both salary and dividends or even retained profits depending on the lender. Contractors may be asked to show daily or hourly rates, plus contract history.

We can help make sure your income is shown in the best possible light.

How to find the best self-employed mortgage deals

Getting a mortgage when you're self-employed isn’t impossible, it just needs a bit more planning. We work with over 90 lenders and have experience matching self-employed clients with the right deal.

Some lenders specialise in self-employed mortgages and look at the full picture, not just your headline numbers. Others may have stricter criteria, so it’s important to apply with the right one.

Use our online mortgage finder to check today’s best deals or speak to an adviser for tailored support.

Making repayments on a self-employed mortgage

Once your mortgage is set up, your repayments work the same as anyone else’s. You can choose a fixed rate if you want stable monthly payments, or a variable or tracker deal if you’re happy with a bit more flexibility.

Offset mortgages can also be useful if you keep savings in the bank, especially for tax planning or cash flow.

If your income changes or you want to remortgage in future, we’ll be here to help again.