Getting your first mortgage is a big deal, and if you’re self-employed, it can feel like a massive mountain to climb. At Mortgage Bridge, we get it — you’re not working a 9-to-5, and your income isn’t always a straight line. But that doesn’t mean getting on the property ladder is out of reach. Far from it.
We’ve helped loads of self-employed first-time buyers secure mortgages, even when they’ve been told “no” elsewhere. In this guide, we’re breaking everything down: what lenders look for, what paperwork you’ll need, and how to boost your chances of getting approved.
What Do Lenders Actually Look for If You’re Self-Employed?
Lenders want to know one thing: can you afford the repayments?
If you’re employed, they’ll ask for payslips. If you’re self-employed — whether you’re a sole trader, limited company director, freelancer, or contractor — they’ll want to see how stable your income is and how healthy your business looks.
Here’s who usually counts as self-employed:
- Sole traders
- Partners in a business
- Limited company directors (usually if you own 20-25% or more of the business)
Different lenders have slightly different rules, but the key point is that your income isn’t coming from traditional employment.
What Kind of Paperwork Do You Need for a Mortgage?
We won’t sugarcoat it — there’s more paperwork involved when you’re self-employed. But if you’re organised, it’s totally manageable.
Here’s what you’ll usually need:
- SA302s and Tax Year Overviews from the last two to three years
- Business accounts (it helps if they’re done by a chartered or certified accountant)
- Bank statements (both personal and business, usually for the last 3–6 months)
- Proof of deposit — where your deposit is coming from (savings, gift, etc.)
- ID and proof of address
If you’re a director of a limited company, some lenders will also look at dividends and retained profits.
How Much Can I Borrow If I’m Self-Employed?
This depends on your income — and how it’s structured. Most lenders will look at your average income over the past two or three years. Some might go with your lowest year, especially if your earnings have dipped. Others might average it out.
Typically, lenders offer around 4 to 5 times your income. So, if your average income is £40,000, you might be able to borrow £160,000 to £200,000.
Want to boost your borrowing power? We can help you figure that out.
How Can I Make My Mortgage Application Stronger?
There are a few smart moves you can make to increase your chances:
- Hire a good accountant — someone who knows how to present your accounts clearly.
- Save a bigger deposit — the more you put down, the less risky you seem to lenders.
- Clear your debts — credit cards, overdrafts, loans. The less you owe, the better.
- Work on your credit score — register to vote, pay bills on time, and don’t apply for loads of credit at once.
- Keep your income steady — lenders love consistency.
- Don’t mix personal and business finances — it makes things messy and harder to prove your income.
We’ve worked with all kinds of self-employed people — from plumbers and graphic designers to company directors — and the same advice applies across the board.
What Struggles Might I Face as a Self-Employed First-Time Buyer?
Let’s be honest, there are a few extra hoops to jump through:
- Haven’t been self-employed for long? Some lenders want at least 2 years of accounts.
- Income all over the place? A fluctuating income can make lenders nervous.
- Writing off lots of expenses? Great for tax — not so great for showing affordability.
But don’t let that put you off. We know lenders who’ll look beyond the standard tick boxes. You just need someone to point you in the right direction — that’s where we come in.
What Mortgage Types Should I Consider?
There are a few different types of mortgages out there:
- Fixed-rate — predictable payments for a set time (e.g., 2 or 5 years)
- Variable-rate — interest rate can change depending on your lender
- Tracker — moves in line with a central base rate
- Offset — links your mortgage to your savings account, which can reduce how much interest you pay
If you like knowing exactly what your payments will be each month, a fixed-rate deal might suit you. If you’re comfortable with some fluctuation, a variable or tracker could save you money.
We’ll walk you through the options and help you pick what fits your lifestyle and budget.
Can I Still Get a Mortgage If I’ve Got Bad Credit?
Short answer: yes.
We specialise in helping people with bad credit, so if you’ve got missed payments, defaults, or even a CCJ on your record, don’t panic. There are lenders out there who’ll still consider your application — especially if you’ve taken steps to get back on track.
Being self-employed with bad credit isn’t ideal, but it’s far from a deal-breaker. We’ll show you your options and help you build a solid case.
Is It Worth Using a Mortgage Adviser If I’m Self-Employed?
Definitely. Mortgage applications can be tricky enough, and when you throw self-employment into the mix, things get more complicated.
We’re not just here to tick boxes — we’ll:
- Find lenders that actually understand self-employed applicants
- Help you get all your documents sorted
- Show you how to improve your chances (and maybe even borrow more)
Basically, we take the stress out of the process so you can focus on finding your new home.
How Does the Base Rate Affect Me?
Mortgage rates are tied to the base rate. If it goes up, your mortgage rate (and monthly payments) could go up too — unless you’re on a fixed deal.
It’s worth keeping an eye on it if you’re thinking of applying soon. If you’re not sure what kind of rate to lock in, we can help you figure that out.
Any Final Tips for Self-Employed First-Time Buyers?
Absolutely. Here’s what we always tell our clients:
- Start preparing early — at least six months before applying
- Keep your accounts tidy and up to date
- Build up your savings — not just for the deposit, but for fees and moving costs
- Get advice from someone who actually knows what they’re talking about (hi, that’s us 👋)
At Mortgage Bridge, we’re all about finding mortgage solutions that actually work for self-employed people. Whether you’re just starting out or already house-hunting, we’ve got your back.
Disclaimer: Your home may be repossessed if you do not keep up repayments on your mortgage. Always seek professional advice tailored to your circumstances.