Self-employed Mortgages
Finding the right mortgage can feel a little more complicated when you’re self-employed, but it doesn’t need to be stressful. At Flagstone, we offer independent, whole-of-market mortgage advice for freelancers, sole traders, contractors and company directors, helping you understand your options and move forward with confidence.
What is a self-employed mortgage?
A self-employed mortgage is not a separate mortgage product. It is a standard mortgage where the lender assesses your income differently because you do not receive a straightforward PAYE salary. Depending on how you work, lenders may review your tax calculations, business accounts, bank statements, salary, dividends or contract income.
Is a self-employed mortgage right for me?
A self-employed mortgage may be suitable if you earn through freelance work, a sole trader business, contracting or a private limited company. It can also be relevant if you own a 25% or more shareholding in a business, if you own a franchise or if you receive a share of net profits from a limited liability partnership. It can also help if you have recently become self-employed, have one or two years of accounts, are moving home, remortgaging or looking at buy-to-let options.
Understanding self-employed mortgages
Self-employed mortgages work in a similar way to other residential mortgages, but the way lenders assess your income and documents can vary.
How self-employed mortgages work
When you apply for a mortgage as a self-employed applicant, lenders usually want to understand how stable and sustainable your income is. This may involve reviewing tax calculations, tax year overviews, business accounts, bank statements or accountant-prepared figures.
Some mortgage lenders for the self-employed may consider applicants with one year’s accounts, while others prefer two or more years of trading history. The amount you may be able to borrow will depend on your income, deposit, credit profile, regular commitments and the lender’s criteria.
When a self-employed mortgage may be suitable
A self-employed mortgage may be suitable if you are buying your first home, moving to a new property, remortgaging or purchasing a buy-to-let property. It may also be helpful if your income is strong but does not fit neatly into standard PAYE based lending criteria.
This can include freelancers with project-based income, sole traders with changing profits, contractors on fixed-term contracts or limited company directors who take income through salary and dividends.
How Flagstone supports you through the process
Flagstone offers independent, whole-of-market mortgage advice, so we are not tied to one lender or a limited panel. Our advisors take time to understand how your income works, what documents you have available and which lenders may be most suitable for your situation.
We can explain what is likely to be needed before you apply, help you compare suitable mortgage options and support you through the application. Our admin team also helps progress cases, keeping things moving from submission through to completion.
Next steps
To get started, get in touch with the Flagstone team. You can do this by getting in contact with your local independent mortgage advisors or by filling out our contact form. During your first conversation, we will usually discuss your income, trading history, deposit, property plans and timescales.
From there, we can help you understand what may be possible and guide you towards the next step in the mortgage process.
FAQs about self-employed mortgages
Many lenders prefer at least two years of accounts, but some may consider self-employed applicants with one year’s accounts. The right route depends on your income, trading history, deposit and overall circumstances.
Yes, it may be possible to get a self-employed mortgage with one year’s accounts, but lender choice can be more limited. Speaking to a mortgage broker can help you understand which lenders may consider your application.
They can feel more complex because lenders need to assess income differently. However, being self-employed does not automatically stop you from getting a mortgage. The key is finding a lender that understands your income structure.
The amount you can borrow depends on your income, deposit, credit history, outgoings and the lender’s affordability checks. For self-employed applicants, lenders may assess income using accounts, tax calculations, salary, dividends or business profits.
Self-employed mortgage rates are not automatically higher as they are the same mortgage products available to standard income applicants, but the income is assessed differently. The rate you are offered will depend on the products available at the time you apply for a mortgage and your loan to income and deposit amount.
You may need tax calculations, tax year overviews, business accounts, bank statements and proof of ID and address. Limited company directors may also need evidence of salary, dividends or company accounts.
Yes, freelancers can get a mortgage. Lenders will usually want to understand your income history, current contracts or work pattern, and how sustainable your earnings are.
Yes, sole traders can apply for a mortgage. Lenders will usually review your trading income, tax records and bank statements to assess affordability.
Yes, limited company directors can get a mortgage. Depending on the lender, income may be assessed using salary, dividends, company profits or a combination of these.
Yes, self-employed applicants can apply for buy-to-let mortgages. Lenders may look at your personal income, expected rental income, deposit and wider financial position.
