Self-Employed Mortgages: How They Work and How to Get Approved

What documents do you need for a self-employed mortgage?

Most lenders will ask for:

Proof of income

• Two to three years of accounts, preferably prepared by a qualified accountant
• SA302 forms or HMRC tax year overviews for the same period
• For limited company directors, salary and dividend evidence
• For contractors, current and upcoming contracts

Bank statements

• Usually the last three to six months
• Both personal and sometimes business accounts

Standard mortgage documents

• Passport or driving licence
• Proof of address
• Proof of deposit source

Providing organised, clear paperwork early makes a big difference.

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How long do you need to be self-employed?

Most lenders prefer two to three years of trading history.

However:

• Some lenders will consider one year if you have strong income and relevant experience
• Contractors with prior PAYE history may be accepted sooner
• Newly incorporated directors may still have options

This is one area where lender choice matters more than people realise.

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Common myths about self-employed mortgages

“Self-employed mortgages are more expensive”
False. Rates depend on risk, not employment type.

“You need three full years of accounts”
Not always. Some lenders accept less.

“You cannot get a high loan-to-value mortgage”
Also false. Options exist, even at higher LTVs, if affordability stacks up.

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Should you use a mortgage broker if you are self-employed?

For many self-employed borrowers, yes.

A broker can:

• Match your income type to the right lenders
• Avoid lenders likely to decline
• Explain how your income will be assessed before you apply

This is especially useful if your income is complex or not consistent year to year.

How to improve your chances of approval

These steps make a real difference:

• Keep your credit record clean
• Avoid taking new credit before applying
• Build a larger deposit if possible
• Do not aggressively reduce profits right before applying
• Keep clear, consistent records
• Register on the electoral roll

Most importantly, do not apply blind. Rejected applications can make things harder later.