Self-Employed Mortgages

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Neil Halliday from Mortgage Advice Centre joins the Mortgage and Protection podcast to discuss mortgages for the Self-Employed.

Is it harder to get a mortgage if you are Self-Employed?

It doesn’t make it harder to get a mortgage, but the way that you prove your income is a little bit different. The rest of the process is exactly the same.

If I only have one year’s accounts, can I still get a mortgage?

The good news is, you can and here, at Mortgage Advice Centre, we have a range of lenders who will consider borrowers with one year’s worth of accounts. If you have two year’s worth of accounts, you are more likely to be accepted for a mortgage, and with three years worth of accounts, all of the lenders on the panel will be happy to look at your application.

Are Self Cert mortgages still available?

No, because it led to some irresponsible lending around the time credit crunch, which ultimately resulted in people losing their homes. They are no longer used.

Can you get a joint mortgage if one person is Self-Employed?

If one person or both are Self-Employed borrowers when they apply, it makes no difference to the process, apart from the actual proof of income. So if one person is Self-Employed, and one is employed, it’s not a problem at all.

Are Buy to Let mortgages available for the Self-Employed?

With Buy to Let mortgages, lenders are usually more interested in the rent and less so in your income. The lender will have a calculation that the rent will have to meet, to ensure the repayments on your mortgage would stay affordable for you in the future. Some will have a minimum income requirement in addition to that rent, but it’s absolutely fine if that income is from an employed or Self-Employed source.

Some let to buy mortgages are not regulated by the Financial Conduct Authority

What is the difference between someone who is Self-Employed and a Limited Company Director? 

Technically someone who is a Limited Company Director is employed by the company, but when you apply for a mortgage, the rules are more like Self-Employed than employed in terms of how the income is looked at by the lenders. For example, they may have retained profits in the business and also their dividends and personal income may also be accepted by the lender.

How much can a Self-Employed person borrow?

As you’re assessed for a mortgage based on affordability, we would do an affordability check when we start the process, to make sure you get the most competitive deal. But regardless of where the income is from, the figures would come out exactly the same.

What documents do I need when applying for a Self-Employed mortgage?

To prove your Self-Employed income you will need to provide your accounts and tax return, sometimes known as an SA302 form. There is also a tax overview, which will be provided by HMRC. 

If you have an accountant it’s even easier because they’ll do all the work. They’ll need to stamp a certificate and return it to the lender.

How does remortgaging work for the Self-Employed? 

Once again, affordability works exactly the same way and you will have the same options as someone who is employed.

How can Mortgage Advice Centre help me with a Self-Employed mortgage application?

If people are Self-Employed or maybe nervous about the type of income they’ve got and how they will provide support for that income, get in touch and we will look at your options. You’ve got absolutely nothing to lose as it doesn’t cost anything to consider what your options are.

As Mortgage Brokers, we will look at affordability and secure a mortgage which is most suited to your circumstances, but will also support clients throughout the full application until completion.


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