At a glance
If you're self-employed it's still often possible to get a mortgage, but lenders will need evidence of your earnings.
You'll go through the same affordability and credit checks as any other borrower.
Make sure you have all your documentation ready.
Boost your chances of being accepted by saving for a larger deposit and maintaining a good credit score.
Can I get a mortgage if I’m self-employed?
You can get a mortgage if you’re self-employed, but you’ll have to go through the same affordability and credit assessment checks as any other borrower. You may also find that some lenders are wary unless you can provide them with a solid record of your accounts.
Mortgage providers have different lending criteria, so don’t give up if you’re refused once. But it may be worth doing some work before you fire off any more applications or talking to a mortgage broker to maximise your chances of acceptance.
Some lenders calculate the amount you can borrow based on several years’-worth of income; others base it on your previous year of trading. Either way, you’ll need to show how much income you’ve reported to HMRC and how much tax you’ve paid.
Your home may be repossessed if you don’t keep up with repayments on your mortgage.
Is it harder to get a mortgage if you’re self-employed?
If you’re self-employed, it can be harder to get a mortgage, as lenders see you as a bigger risk. It’s certainly not out of the question, though.
Having at least three years’ worth of accounts will give you access to the biggest choice of lenders. If your income varies, most lenders will take an average of your past two or three years’ income. If you’ve just had a particularly good financial year, it might be worth finding a lender that only looks at your previous year’s accounts.
It's worth pointing out that there's no such thing as a self-employed mortgage – you'll be applying for the same mortgages as everyone else.
What counts as self-employed?
A person is defined as self-employed if they run their business for themselves and take responsibility for its success or failure. Self-employed workers are not paid through PAYE, according to GOV.UK.
HMRC will consider you a sole trader if you’re working for yourself, taking on different clients and being responsible for your own business. Lenders will see you as self-employed if you own more than a 20% share of the business that pays your income. It’s possible to be both self-employed and employed: for example, you have a job but run a side hustle outside of office hours.
Lenders apply different rules depending on if you’re self-employed, a partner or the owner of a limited company. It’s important that you know which applies to you so you can have the right paperwork to hand.
How will I be assessed as a self-employed mortgage applicant?
Lenders may have different expectations, depending on which category you fall into:
Sole trader: if you’re a freelancer or contractor, you’re most likely classed as a sole trader. If this is the case, you’ll need to complete a tax self-assessment and ideally have it signed by an accountant. You can then provide lenders with an SA302 form to prove your income.
Partner: if you’re in business with other people, mortgage lenders will want to see evidence of your share of the profits.
Limited company: if you have a registered limited company, you’ll pay yourself a salary and dividends. If you’re applying for a mortgage, lenders will want to know how much this amounts to.
Top tip
If you’re planning on changing the structure of your business – for example, from being a sole trader to a limited company – it might be best to hold off until you’ve secured mortgage approval. Lenders look for stability, and a major business change just before you apply might put them off.
What will I need to apply for a mortgage if I’m self-employed?
If you’re self-employed, you’ll need to provide evidence that confirms you can repay the mortgage. This might include:
A good credit history – this shows lenders that you can manage debt effectively by not going over your credit limit and keeping up with your repayments. The better your credit history, the more likely you’ll be approved for a mortgage.
Proof of income – you’ll typically need to show documents that demonstrate a steady income over the past year (or preferably two or three). This can be a tax return, a profit and loss statement or anything else that shows you have regular money coming in. Many lenders now accept HMRC’s SA302 form as verification of income.
Savings – these can support your case by showing that you can manage your money effectively, even if your income fluctuates.
David Hollingworth, associate director at L&C Mortgages, says:
“Self-employed people often worry that they’ll have to pay more for their mortgage than employed borrowers. That’s not necessarily the case; lenders will make their core range of rates available.
“However, proving income levels to meet lenders’ affordability criteria can be tougher, especially for those who don’t have an established track record of a couple of years behind them. Tailored advice from a broker should help pinpoint the right deal, whether it’s from the high street or a more specialist lender.”
How can I boost my chances of being accepted?
More than four million people are self-employed in the UK, according to 2025 ONS data, and there are plenty of ways to increase your chances of being accepted for a mortgage:
Check your credit record – you’ll need a good credit score. You can check your score for free with a credit reference agency (CRA). If you have a bad credit rating, you can take steps to improve your score.
Approach the right lenders – some mortgage lenders are more sympathetic to self-employed applicants than others.
Make sure you’re on the electoral roll – if you’re not, it will lower your credit score.
Get an SA302 form – this provides lenders with evidence of your earnings. HMRC will give you one once you’ve filed your self-assessment tax return.
Manage your credit cards – that means paying off more than the minimum amount each month and staying well away from your limit, and keeping your credit utilisation rate low.
Save for a bigger deposit – the bigger your deposit, the more mortgage deals you’ll typically be eligible for. If
you know you’ve a large sum of money coming in, you may be better off waiting for it to arrive so you can put down a larger deposit.
You can get fee-free mortgage advice from our broker partners L&C Mortgages**.
**L&C Mortgages is a multi-award-winning mortgage broker with over 20 years’ experience in helping people secure their perfect mortgage. Advice is provided by L&C, which is authorised and regulated by the Financial Conduct Authority (143002).
L&C is not part of Compare the Market Limited. Compare the Market may receive an introducer's fee from L&C, for customers who use this service. All applications are subject to lending and eligibility criteria. L&C will not charge you a broker fee should you decide to proceed with a mortgage.
How much do self-employed mortgages cost?
When working out the price of your mortgage, it’s important to consider all the costs involved, not just the repayments and interest rate. When comparing mortgages, pay special attention to the APRC (annual percentage rate of charge) – this gives you a better idea of the overall cost of your mortgage including fees and charges.
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FAQs
Do self-employed people have to pay higher rates?
If you’ve been self-employed for a few years, have solid proof of income, a decent deposit and a good credit rating, then you’ll be in a good position to find a competitively priced mortgage.
However, if you only have a year’s worth of accounts and your credit rating’s not great, fewer lenders will be willing to offer you a mortgage. That means you might have to go to a specialist lender, which may charge you a higher interest rate.
How long do I need to have been self-employed for to get a mortgage?
It depends on the provider, but for most mainstream lenders you’ll need to have been self-employed for at least two to three years and have accounts to prove it.
What documents will I need to apply for a mortgage?
As well as proof of your name and address, when you apply for a mortgage you’ll also need:
Tax form SA302
Statements of two to three years of accounts from an accountant
Bank statements – usually for the past three to six months
Evidence of the deposit you’re putting towards a property.
Some lenders may ask for more paperwork as proof that you can keep up with the repayments.
Do self-certification mortgages still exist?
No, the Financial Conduct Authority (FCA) banned self-certification UK mortgages in 2009. This means people can no longer apply for mortgages without proving their income.
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With over 10 years’ experience writing, editing and managing content, Emma has written and edited for some of Australia’s leading financial comparison brands, including Savings.com.au, Your Investment Property Magazine, and Your Mortgage.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
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