If you are self-employed, rest assured that you have access to plenty of great mortgage deals – there are just a few more hoops to jump through before being approved. Self-employed mortgage criteria may be a little different, and mortgage providers typically require more detailed evidence of your income. That’s why it’s important to seek advice from a mortgage broker whose knowledge of the market can help you find the best self-employed mortgage deal for your circumstances.

We are The Mortgage Pod, mortgage brokers for the self-employed

At The Mortgage Pod, we’re dedicated to helping hard-working business owners get access to competitive mortgage deals. Our friendly team specialises in securing mortgages for business owners, including limited company directors, sole traders and contractors. We have countless years of experience and understand the intricacies of mortgages for small businesses and their owners. We will be there to guide you every step of the way and manage your application so that you can get on with running your business.

Get in touch with us today to talk about your self-employed mortgage requirements.

Can I get a mortgage if I’m self-employed?

Absolutely, you can get a mortgage if you’re self-employed. Many lenders are comfortable lending to self-employed applicants, although they will likely make a more thorough assessment of your affordability and will tailor their underwriting to suit.

What is a self-employed mortgage?

A self-employed mortgage is simply a mortgage that’s designed for individuals whose income comes from running their own business. It caters to those who have varying or fluctuating income patterns and may not have traditional payslips or PAYE employment history. That includes sole traders, contractors, freelancers and company directors.

Lenders have specific criteria and assessment methods for self-employed individuals to determine their eligibility and affordability.

Is it more difficult to get a self-employed mortgage?

It’s true that getting a self-employed mortgage has unique challenges compared to ‘traditional’ mortgages. Lenders consider self-employed people as higher risk as they have less assurance of a reliable income. So you will find that a mortgage lender will scrutinise your application far more closely and will ask to see financial records as evidence of income stability.

It may sound daunting, but with proper preparation and the assistance of The Mortgage Pod, getting a self-employed mortgage shouldn’t be a stressful experience.

How will I be assessed as self-employed for a mortgage?

Your income and affordability for a mortgage will be assessed differently compared to traditional employees.

A mortgage lender will typically review the following documentation to assess your ability to meet the monthly repayments.

  • Business accounts – 2 or more years, typically supplied as copies of your signed financial accounts.
  • Personal Tax documents – Likely 2 years’ tax calculations (SA302’s) and tax year overviews.
  • Bank statements – Latest 3-6 months personal and business bank statements to look at income and outgoings of both the business and its shareholders.
  • Credit rating – A good credit score can go a long way to reassuring a lender that you are a reliable borrower. Check your credit report here.

Lenders may also consider factors such as your business’s longevity and future prospects.

Talk to a mortgage expert today

Our self-employed mortgage service

At The Mortgage Pod, we have been helping self-employed customers to obtain mortgages for many years. In fact, we very much enjoy working with forward-thinking business owners and entrepreneurs, who often are leaders in their field.

We can help you understand how different lenders will assess your self-employed mortgage application, which documents they may require, and which aspects of your income they will use to assess your affordability. In short, we will ensure we give you the best chance of being accepted for a mortgage based on your unique circumstances.

Mortgages for limited company directors

At The Mortgage Pod, we understand the varying income structures of limited company directors. When assessing your borrowing capability, we will look at your overall income, including your company salary, dividend payments and any other form of income, such as rent and company bonuses.

Whether you are applying for a personal mortgage or a buy-to-let mortgage through your company, lenders require evidence of your company’s financial health. We can help you compile all of the necessary paperwork, such as business accounts and tax returns, and liaise with the mortgage lender on your behalf to save you precious time.

Sole Trader Mortgages

As a sole trader, it’s essential to approach the lenders who will take your unique financial circumstances into consideration. You will need to provide evidence of your “profit from self-employment”, and most lenders wish to see at least 12 months of trading history, some up to three years.

However, depending on your circumstances, it is possible to obtain a mortgage with less than 12 months trading under your belt, for example, if you are a contractor registered for CIS. The Mortgage Pod has relationships with many lenders with more flexible criteria catered to sole traders and can help you find the best possible deal for your circumstances.

Self-employed first-time buyer mortgages

Applying for a mortgage as a first-time buyer is daunting enough, even more so when your income comes from self-employment. But, contrary to what you may think, being a self-employed first-time buyer in no way disqualifies you from getting a mortgage. However, lenders do have additional considerations and requirements compared to traditionally employed applicants.

You will have access to the same mortgage rates as traditional borrowers, and lenders will assess your income, credit history, and affordability to meet the mortgage repayments, just like any other applicant. However, you will likely be required to gather a little more documentation as proof of your self-employed income, such as your tax returns and bank account statements.

Remortgages for the self-employed

Remortgaging as a self-employed applicant follows a similar process to applying for a mortgage, which can prove a burden if you’re snowed under with running your own business. As your mortgage broker, we can guide you through the remortgage process and help lighten the load.

We’ll help you to calculate the equity in your current property and the loan-to-value ratio. We will also make a thorough assessment of your personal finances and long-term financial goals to find the most appropriate deal on the market. What’s more, we’ll do all of the necessary admin so that you can get back to running your business.

Talk to us about mortgages for self-employed people

Here at The Mortgage Pod, we celebrate the industrious, entrepreneurial spirit of small business owners. We’re here to make your life easier and help you find the mortgage you deserve to secure your next home or buy-to-let property.

Call us today to get the ball rolling, we look forward to speaking to you.

Can I get a joint mortgage with a self-employed partner?

Yes, it is possible to get a joint mortgage with a self-employed partner. Lenders consider the combined income and financial stability of both applicants when assessing affordability. The self-employed partner’s income and documentation will be evaluated in a similar way as a sole applicant.

How are self-employed mortgages different from standard mortgages?

Self-employed mortgages differ from standard mortgages in how income and affordability are assessed. Traditional employees typically provide payslips or employment contracts as proof of income, while self-employed individuals rely on business accounts, tax returns, and bank statements.

What are self-certification mortgages, and do they still exist?

Self-certification mortgages allowed borrowers to state their income without providing extensive documentation for verification. However, these mortgages are no longer available in most countries due to regulatory changes and the potential for abuse. Lenders now require comprehensive proof of income to ensure responsible lending practices.