How to Get a Mortgage When You're Self-Employed

The idea that self-employed people can't get mortgages is a myth — but it's one that persists because the process genuinely is more involved than a standard employed application.

The difference isn't that lenders don't want to lend to you. It's that they need to work harder to verify your income, so they ask for more evidence. If you understand what they're looking for and prepare accordingly, there's no reason your application should fail.

What lenders actually need from self-employed applicants

When you're employed, a lender calls your employer to verify your salary. When you're self-employed, that's not an option — so they verify through documentation instead.

Most lenders want to see:

• Two years of accounts — either sole trader accounts or limited company accounts, ideally prepared by a chartered accountant
• SA302s — your Self Assessment tax calculations, downloadable from your HMRC online account. Lenders use these to see what income you've actually declared to HMRC, which matters more than what your invoices say
• Three to six months of business and personal bank statements
• A strong credit history — more on this below
• A decent deposit — 10–15% minimum for most lenders, though 15–25% opens up significantly better rates and more lender options

Sole trader vs limited company — lenders treat these differently

If you're a sole trader, lenders look at your net profit (income minus expenses). That's what they'll base your borrowing capacity on — not what you invoiced.

If you run a limited company, it gets more nuanced. Some lenders use your salary plus declared dividends. Others use your salary plus your share of net profit. This can make a significant difference to your borrowing figure, and it's exactly the kind of thing a broker navigates for you — because different lenders use different methods and a broker knows which approach suits your structure.

Which lenders are most self-employed-friendly?

High street banks (Halifax, NatWest, Santander) will consider self-employed applicants who have two years of clean accounts and a good credit profile. They tend to be more straightforward but also more rigid on their criteria.

Specialist lenders (Kensington Mortgages, Aldermore, Pepper Money) are set up specifically for more complex cases — irregular income, one year of accounts, or a gap in trading history. Their rates are typically a little higher, but they open doors that high street lenders won't.

The right lender depends on your specific situation. This is where a whole-of-market mortgage broker earns their fee — they know which lenders are currently most amenable to self-employed applications and can match you to the right one without you doing multiple applications and leaving hard searches on your credit file.

How a broker helps — and why it's worth it

A mortgage broker who specialises in self-employed cases does several things you can't easily do yourself:

• Accesses lenders not available direct to consumers
• Knows which lenders assess limited company income most favourably
• Presents your application in the strongest possible light (how your case is packaged matters)
• Handles the back-and-forth with the lender so you don't have to

Unbiased can match you with an independent, FCA-regulated mortgage adviser for a free initial consultation. Worth doing before you start applying anywhere.

Improving your eligibility before you apply

If your accounts aren't quite where you need them or your credit profile needs work, it's often worth waiting six to twelve months and using that time well.

Get two clean years of accounts. If you only have one year, most high street lenders won't consider you. Specialist lenders might, but your options are narrower.

File your Self Assessment on time. Late filing is a red flag. Lenders see it as financial unreliability. If you're behind, get up to date before you apply.

Build your deposit. Moving from 10% to 15% or 15% to 20% deposit meaningfully improves your options and your rates. See our LTV guide for how the numbers work.

Clean up your credit file. Check it, fix any errors, reduce utilisation. We've written a dedicated guide to improving your credit score for a self-employed mortgage with more detail on this.

Keep business and personal finances separate. Mixed finances on bank statements confuse lenders and make your application harder to assess cleanly.

What if you get rejected?

Rejection from one lender isn't the end of the road — it's information. It tells you either that your application needs work or that you applied to the wrong lender for your circumstances.

Before applying again, find out why you were declined (you can ask). Then either address it — more time trading, a larger deposit, better credit — or use a broker to find a lender whose criteria you do meet.

What you shouldn't do is make multiple applications in quick succession. Each hard credit search leaves a mark on your file, and several in a short period makes lenders nervous.

Related reading:

• How to improve your credit score for a self-employed mortgage


• What mortgage can I get on my salary?


• What is LTV and how does it affect your mortgage?


• Pension plans for self-employed women

This post is for informational purposes only and does not constitute financial advice. Always seek regulated mortgage advice tailored to your own circumstances.