Navigating Mortgages When You Are Self-Employed

Caz Blake-Symes • July 23, 2025

Securing a mortgage can be more complex for the UK’s 4.2 million self-employed workers. Without traditional payslips, proving income requires a different approach—but there are still plenty of options.


The Self-Employed Mortgage Challenge:

  • Proving stable, consistent income
  • Managing tax-deductible expenses
  • Supplying non-traditional documentation
  • Demonstrating business stability and longevity


Mortgage Options for UK Self-Employed Borrowers

 Standard Residential Mortgages: Available to those with 2–3 years of accounts or tax returns. Income is assessed via salary/dividends (for directors) or net profit (for sole traders).

Specialist Self-Employed Mortgages

Some lenders accept just one year of accounts or projections. Often available via brokers rather than direct.

Contractor Mortgages

Income based on your day/hourly rate and current contract value. Requires as little as 6–12 months’ history, depending on experience.


 Please note: Self-certification mortgages (where borrowers could declare their income without verification) were banned by the Financial Conduct Authority (FCA) in 2014. Any lender offering such products in the UK would be operating illegally.

 

Tips to Strengthen Your Mortgage Application:

1. Keep Accounts and Tax Records clean and current

2. Plan Dividend Withdrawal Wisely

3. Improve Your Credit Score

4. Save for a Larger Deposit (15-25%)

5. Maintain Consistent Salary and Dividend Drawing Patterns

 

Documentation You'll Need to Prepare

Essential Documents for Mortgage Applications

  • SA302 Tax Calculations and Tax Year Overviews: For the past 2-3 tax years (available from HMRC)
  • Business Accounts: Preferably prepared or certified by a chartered or certified accountant
  • Bank Statements: Personal and business accounts (typically 3-6 months)
  • Proof of Deposit: Evidence of savings or gifted deposit
  • Proof of Identity and Address: Passport, driving licence, utility bills, etc.

 

If you have any queries about being Self-Employed and the options available to you, please contact Phil Clark today!

Call 0117 3251511

Email info@swmortgages.com

For more information about the Mortgage and Protection products we offer, please visit www.bristolmortgagesonline.com

 

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

 

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