Being Self-Employed Shouldn’t Affect You Getting a Mortgage

One of the most common myths in the mortgage world is that being self-employed makes it almost impossible to get a mortgage. But the truth? It’s simply not the case.

Yes, the process can be a little different – but if you’ve got the right paperwork and a good mortgage broker in your corner, being self-employed shouldn’t hold you back from buying your dream home.

Why the myth exists

Many people believe lenders only favour those in full-time employment because their income is more predictable. And while lenders do need to see that your income is sustainable and reliable, being self-employed doesn’t make you a risk. In fact, many self-employed applicants are in a stronger financial position than salaried workers.

The challenge often comes down to understanding what lenders are looking for – and how best to present your finances.

What lenders really want to see

Whether you’re a sole trader, limited company director, contractor, or freelancer, lenders are mainly interested in three key areas:

• Consistency of income – Lenders typically look at your average income over the last 2–3 years, though some may accept just one year of trading with strong supporting evidence.
• Affordability – Can you comfortably afford the monthly repayments, taking into account your income, debts, and outgoings?
• Proper documentation – This usually includes your SA302s or tax calculations, tax year overviews, company accounts, and possibly business bank statements.

With the right documents, many self-employed applicants find they have just as many mortgage options as employed applicants.

Lender flexibility is improving

More and more lenders are recognising the growing number of self-employed people in the UK – currently over 4 million and counting (The Guardian, citing 2024 ONS data). As a result, many have developed specific criteria and underwriting approaches tailored to this part of the market.

Some lenders even specialise in self-employed mortgages and take a more flexible view of income – including retained profits, one-year accounts, or contractor day rates.

How a mortgage broker can help

Working with a mortgage broker who understands self-employment can make all the difference. At Impact Specialist Finance, we help self-employed clients every day – from sole traders with fluctuating income to directors with retained profits.

We know which lenders are most flexible, how to package your application, and what documents to prepare upfront to give you the best chance of success.

Even if you’ve been turned down before or have only recently become self-employed, don’t write off your chances – there are often more options than you might realise.

Final thoughts

Being self-employed shouldn’t affect your ability to get a mortgage – not when you have the right guidance and a strong application. With more lenders open to flexible working arrangements and non-traditional income, now is a great time to explore your options.

Need help getting a mortgage while self-employed?

At Impact Specialist Finance, we specialise in helping business owners, contractors, freelancers, and company directors secure the right mortgage for their circumstances.

If you’d like to explore your options, we’re just a click or a phone call away.