The short answer is that it can be, but it is far from impossible. Many self-employed people successfully secure mortgages every year. The key is understanding what lenders look for and making sure your application presents your finances in the strongest possible light.

 

Why can it be more complex?

When you are employed by a company, verifying your income is straightforward. A few payslips and an employer reference tell the lender what they need to know. When you are self-employed, the picture is less clear-cut. Your income may vary month to month, you may take dividends rather than a salary, and the way you structure your finances for tax purposes can affect what lenders see.

 

Most lenders will want to see at least two years of accounts or tax returns, with many preferring three. They use this to assess not just how much you earn, but whether that income is consistent and sustainable. A single strong year following a weaker one can sometimes work against you, as lenders typically look at an average.

 

Some lenders however will take just one year’s accounts and a good mortgage broker (like us) will know which lenders these are and whether you fit their criteria.  A strong first year can be tricky due to set up costs and building momentum, but if you’ve turned a profit in your first year then it’s worth finding out where you stand.

 

Income stability is the central concern. Lenders need to feel confident that you can meet your monthly repayments even if your income fluctuates. The more evidence you can provide of stable, recurring income, the stronger your application.

 

What can you do to improve your chances?

Keep your accounts in good order. Working with a qualified accountant ensures your accounts are accurate, well-presented, and filed on time. Lenders look favourably on organised, professional financial records.

 

Be mindful of how you minimise taxable income. It is completely legitimate to claim business expenses, and many self-employed people do so to reduce their tax bill. However, this also reduces the income figure that lenders see on your tax return. There is a balance to strike, and it is worth thinking about this in the years leading up to a mortgage application.

 

Save a healthy deposit. A larger deposit reduces the lender’s risk and improves your access to better rates. The minimum deposit with most lenders is 5%, whilst a deposit of 20% or more puts you in a stronger position.  For the very best rates lenders will usually need a deposit of 25% or greater.

 

Keep your credit score healthy. Pay bills on time, keep credit card balances low, and avoid making multiple credit applications in the period before you apply for a mortgage.

 

Use a mortgage adviser. Not all lenders assess self-employed income in the same way, and some are more experienced at working with self-employed borrowers than others. A mortgage adviser who knows the market can identify the most suitable lenders for your specific circumstances and help you present your application in the best possible way.

 

The bottom line

Being self-employed does add some complexity to a mortgage application, but with the right preparation and the right advice, it is a hurdle that can absolutely be cleared. Starting your preparation early, ideally a year or two before you plan to apply, gives you the best possible chance of a smooth process.

 

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

Approved by In Partnership FRN 192638 June 2026