Being self-employed offers incredible freedom but when it comes to getting a mortgage, it can sometimes feel like you’re facing an uphill battle. The good news? Getting a self-employed mortgage is absolutely possible, even if you only have 1 year of accounts or have experienced a blip on your credit file.
Whether you’re a sole trader, contractor, company director, or freelancer, this practical guide will walk you through how to increase your chances of getting approved and how the right help can make all the difference.
Can You Get a Mortgage If You’re Self-Employed?
Yes — many lenders are happy to approve self-employed mortgage applications, even for those with limited trading history or imperfect credit. However, requirements can vary, and knowing how to position yourself is key.
Here’s what you need to know.
- What Do Mortgage Lenders Look for if You’re Self-Employed?
Lenders need confidence that you can afford the repayments. If you’re self-employed, they’ll typically want to see:
- 1 to 2 years of accounts or tax calculations (SA302s)
- Bank statements (personal and business)
- Proof of ongoing work or future contracts
Tip: While many lenders require 2 years of accounts, some specialist lenders will consider just 1 year and a few may accept as little as 6 months, depending on your circumstances.
If you’ve had credit issues in the past, like missed payments or defaults, don’t worry there are also lenders who will take a more flexible view, especially if the issue was temporary or has been resolved.
- Keep Your Finances Tidy
Mortgage lenders like clarity and consistency. Make sure your:
- Business and personal finances are kept separate
- Bank statements are up to date
- Inconsistencies in income (seasonal dips or recent changes) are clearly explained
Having a clear financial picture helps underwriters feel more confident in your application.
- How Do Lenders Calculate Self-Employed Income?
Unlike salaried workers, self-employed borrowers are assessed on net income (after expenses), not gross turnover. If you deduct too much for tax purposes, it may reduce the amount you can borrow.
💡 If you’re planning to apply soon, it may be worth minimising tax write-offs to show a stronger income.
- Strengthen Your Self-Employed Mortgage Application
To improve your chances:
- Improve your credit score – Check for errors, pay bills on time, reduce outstanding debts
- Save a larger deposit – A higher deposit reduces risk for the lender
- Lower your debt-to-income ratio – Avoid large financial commitments before applying
These small steps can make a big difference, especially if you have only 1 year of self-employed accounts or credit blemishes.
- Work With a Mortgage Broker Who Specialises in Self-Employed Clients
Not all lenders understand the unique nature of self-employed income. That’s why working with a mortgage broker who specialises in self-employed mortgages can be a game-changer.
They’ll:
- Match you with the right lenders
- Help you present your accounts properly
- Save you time and reduce the stress of applying
- Stay Positive and Be Prepared
The process might involve more paperwork and patience than a standard application — but with the right preparation and expert advice, getting a mortgage when you’re self-employed is absolutely achievable.
Ready to Get Started?
If you’re self-employed and looking for a mortgage, even with just 1 year of accounts or a credit history blip we can help.
👉 Contact us today for expert advice, access to specialist lenders, and a free, no-obligation consultation. Let’s help you secure the home you deserve.
