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Getting a mortgage while self-employed
We can help with what you need to know
Being a freelancer or running your own business comes with plenty of challenges – getting a mortgage doesn’t have to be one of them.
Being self-employed means your mortgage application might need more evidence and paperwork. It doesn’t mean you won’t be accepted.
We’ll explain how to apply for a mortgage when you’re self-employed.
What is considered self-employed?
When you’re self-employed and applying for a mortgage, lenders will look at your application based on your business type. You’ll usually fall into one of the following categories:
Sole trader
You own the business and keep all the profits.
Partnership
You own a share in a business with one or more people and share the profits as your main income.
Limited company
You have set up a company that keeps your own money separate from your business.
Freelancer or contractor
You can also be classed as a sole trader, partnership or limited company.
Each category will need to give different types of evidence of your income.
Evidence of your income
Typically, you’ll need to show the following documents.
Before you apply
Things to consider
- Can you afford to make repayments over the long term?
- Do you have any existing debts?
- Is your taxable income enough to afford monthly repayments?
Save some money
Use this budget calculator to see what savings you can make on your everyday spending.
Ready to apply?
It’s quick and easy to apply for an AIP online. It should take about 15 minutes.
You'll get an instant decision if you apply between 6am and 10pm Monday to Saturday, or 6am and 9pm Sunday. Otherwise, we'll give you a decision the next day.
Let’s look at the details
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Yes, but they’ll need to give evidence of earnings and future earnings and prove that they can make regular mortgage payments. If your partner is out of work or can’t make their share of the repayments, you’d be responsible for making the full payment yourself. So, make sure you’ll be able to make the monthly repayments before you apply.
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You don't need to earn a set amount to be accepted for a mortgage. You’ll need a good credit rating, a 5 to 10% minimum deposit and a steady taxable income that means you can make the monthly repayment comfortably.
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No, not always. If you can prove you can pay back your mortgage and have a good credit rating and deposit, you won’t necessarily pay a higher interest rate.
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Yes, it’s no different whether you’re buying your first or second home. You may be able to get a mortgage if you can make the monthly repayments and you’ve:
- a strong deposit
- a good credit rating
- evidence of taxable income.
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Most lenders ask for two to three years of accounts as proof that you can afford to repay the mortgage. But, it’s still possible to get a mortgage in less time if you have a good credit score and a sizable deposit. Payslips from a past job may still count as evidence.
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Joint mortgage support
Sharing a mortgage with another person can sometimes make it easier to get a larger mortgage.
