Jason Bailey

Expertly compared by Jason Bailey

Products Updated October 12, 2021

 

Compare Mortgages for Self Employed People

If you are self employed, a contractor or freelancer or you perhaps you own your own small business then we can help you get a mortgage. View and compare the mortgages rates and deals on offer or simply call us to speak to a mortgage expert. Bad credit customers and buy to let mortgage applications also accepted.

 

Free mortgage advice and brokerage service. Our experts can find you the perfect deal from thousands of products & exclusive deals:

Your home may be repossessed if you do not keep up repayments on your mortgage.

Results:1 providers expertly compared:

Lending Expert

Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

LTV
60% - 100%

Initial Rate
1.19% - 4.32%

Standard Rate (SVR)
3.94% - 4.79%

APRC
3.6%

Type
Variable & 3 ,5 & 10 Fixed Rate

Rated 4.9/ 5

All credit types

The mortgage experts at First Choice Finance can quickly assess your requirements and search the market place to find you the perfect mortgage deal. Click get a quote to make an enquiry today.

Read our customer and visitor reviews for this product:

Rating: 4 / 5 with 2 votes

Simple application process

by K Wheeler

Simple application process - broker was kind and offered advice.

Quick search

by James Hilton

This is a quick mortgage search facility and shows many lenders across the market. Impressed with the level of detail on each product.

Start Your Self-Employed Mortgage Application Today With Lending Expert!

Getting a mortgage when you are self-employed can be a difficult task but it is not impossible! Lending Expert can guide you to the best broker for your self-employed mortgage if you are eligible. 

Technically, there is no such thing as a Self-Employed Mortgage, you will be applying for the same mortgage as those who have contracted jobs with companies. That is what makes getting this mortgage more difficult. 

Without a regular payslip or a full time contract it can be difficult to convince your lenders to give you a mortgage, people who are self-employed can often have fluctuating incomes and this means that lenders do not know whether to trust you for repayments. 

However, with some financial foresight and a good deposit, it is possible to receive a mortgage if you are self-employed. You may have to go the extra length in order to prove you can keep up repayments but with thoughtful planning and Lending Expert, this is easy.

The best way to prove your credentials to the lender is to show at least two years of accounts signed off by a certified or chartered accountant, the more years that you can show the better for your application! 

Moreover, if you can show a healthy and stable profit over the past few years, lenders will be more likely to accept your application as lenders will look at average profit to assess your eligibility for a self-employed mortgage. 

Before taking out a self-employed mortgage, make sure to share the objectives with your mortgage advisor so that you can ensure that the mortgage suitably meets your requirements.

Lending Expert is a mortgage broker and can compare over 1,000 self-employed mortgage deals across the UK. Whilst high street banks will typically offer self-employed mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history

Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best self-employed mortgage according to your requirements. 

 

Key Features

  • Rates from 1.39% per month
  • Borrow up to £2 million
  • Loan Term – 1 to 25 years or upon request
  • Minimum 25% deposit
  • Interest only, fixed, tracker mortgages available
  • If rent charged, it should be 125% to 145% of mortgage repayments
  • Free tool to compare self-employed mortgages

 

Can Self-Employed People Get a Mortgage?

If you are self-employed then getting a mortgage can sometimes be challenging. However, with good credit and organised accounts there are plenty of mortgage providers that will give a mortgage to those who are self-employed. 

If you are self-employed then you will be asked to provide at least two years of accounts in contrast to the most recent three payslips you are asked for if you are employed. 

When lenders can see your organised and healthy finances then self-employed people are eligible for almost all of the same mortgages as everyone else. It can be more difficult if you have bad credit and not all of the necessary evidence but do not be deterred, Lending Expert can still find you the best mortgage for your requirements. 

 

How Much Does a Self-Employed People Mortgage Cost?

The cost of a mortgage when you are self-employed relies on a number of factors. Most importantly is the type of mortgage that you are applying for. 

Read Lending Expert’s pages on Fixed Rate Mortgages, Current Account Mortgages and many more to find the best type of mortgage for you. 

However, the mortgage will cost more if you have bad credit and cannot produce at least two years of accounts that show a healthy and stable income from your business. Make sure to read the guidelines carefully before you accept a mortgage. 

 

What Counts as Self-Employed for a Mortgage?

Lenders will consider that you are self-employed if you own more than 20% to 25% of the business that is the source of your main income.

Freelancers who are hired to work for various companies and independent contractors are also seen as self-employed. 

You can be a sole trader or company director and still be self-employed.

 

 

What Do I Need To Provide for a Self-Employed Mortgage?

To apply for a mortgage when you are self-employed, you will need to provide proof of your identity, your income and your expenditure, with examples of these detailed below. Lenders may ask for more documents than this, but if you can provide good proof of all of these documents then you sit in good stead to be eligible for a mortgage when you are self-employed. 

To prove your identity you will need to show:

  • Passport
  • Driving licence
  • Council tax bill
  • Utility bills dated within three months
  • Six months worth of bank statements

 

To prove your income you can show:

  • An SA302 form from HMRC for the past two or three trading years to show your tax calculation.
  • A set of accounts certified by your accountant if you have one
  • Proof of future contracts, commissions and projects
  • Evidence of upcoming dividend payments if you are a company director

 

And to prove your expenditure: 

  • Bank statements from the past three months

 

What Areas of the UK Does Lending Expert Cover as a Self-Employed Mortgage Broker?

We proudly offer self-employed mortgages across the entire UK, Scotland and Wales including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.

 

Am I Eligible for a Self-Employed Mortgage?

  • Aged 25 to 85 years’ old
  • Minimum income of £25,000 per year
  • Minimum deposit 25% of overall property value
  • Good credit status 
  • Strong financial record (limited defaults, arrears)
  • The property has potential value and can be rented out

 

The typical deposit required for a self-employed mortgage is 25% of the property value, with some lenders requiring around 40% to 45%. 

Larger deposits will usually result in paying lower rates overall, since you have paid off and own more of the property. Putting down a higher deposit may also be a requirement for those individuals with limited financial records or weaker credit ratings.

 

How Can I Improve My Chances of Getting a Self-Employed Mortgage?

There are a few simple factors that can help improve your chances of getting a mortgage if you are self-employed:

  • Spend Wisely – Lenders will check your expenditure and if you have a fluctuating self-employed income then lots of spending will deter lenders from allowing you to borrow.
  • Improve Your Credit Score – Having a good credit score is always a good way to get into a lender’s good books. Paying off any outstanding bills is a good start. 
  • Save For A Deposit – A larger deposit makes getting a mortgage when you are self-employed a lot easier so saving for a little larger deposit can dramatically increase your chances of being accepted. 
  • Speak To The Experts – Here at Lending Expert we will provide the best quality service and understand each individual’s circumstances are different. Speak to us today and get started on your self-employed mortgage journey. 

 

How Do I Compare Self-Employed Mortgage Rates?

Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.

Contact us today to speak to an expert and start comparing fixed rate mortgages to find the best option for you.

 

Why Use Lending Expert As Your Self-Employed Mortgage Broker?

Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals available and is in the perfect position to help you get approved and get the best rates.

Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation. 

Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!

FAQ

If you're self employed then proving your income can be more challenging, but isn't impossible. Whether you are a sole trader, a company director or a contractor, the type of proof you can provide my differ.

The most popular proof of income that mortgage lenders accept would be SA302 documents that are now available as a print off from your accountant. An SA302 document will show your income from the previous financial year. You may also be able to demonstrate income by means of your company or business accounts, or via a letter or statements from your accountant.

Each lender will also have different rules about how long you must have been in business/self employed to qualify for their mortgage. Some lenders will accept applicants with only 1 year of accounts, while others will require a longer duration of 2 years accounts for example.

As a director you can provide the lender with payslips and SA302 documents that shows your income and dividend payments.

Yes. Dividend income is allowed as part of the income calculation.

Generally speaking mortgage lenders will not accept rental income as part of the income calculation. If you are a self-employed landlord, some lenders will take net income into account if you can present sufficient evidence and the property can be shown to be self-funding; this will be after all management and finance costs are deducted.

Yes and No. This depends on the lender and how much they wish to see and investigate further. They may be happy with your last 2 years SA302 documents and take an average income calculation from that. They then may wish to back this up by looking into the LTD company to check the income and expenses there to also verify a solvent income stream. This is where the help from a good broker can help ensure you have everything in order that the lender will need to see.

If you have a history of bad credit such as missed payments, CCJ’s or even bankruptcy then you may find it more difficult to get a mortgage. In this instance we would advise you to speak with a mortgage expert who will be able to assess your needs and credit worthiness.

Our mortgage brokers have an in-depth knowledge of the mortgage market and understand which mortgage lenders offer mortgages to people with a bad credit history.

It is also important to consider that if you require a mortgage with a bad credit history or low credit score then you should expect to pay a higher rate of interest for your mortgage. This will take careful consideration to ensure you can meet the repayments within your household budget.

No. The days of self certification mortgages are over. The lender will need to see documentary proof of your income.