📰 Buying a Home When You’re Self-Employed – What You Need to Know For many self-employed people, buying a home can feel like climbing a mountain — but with the right preparation and advice, it’s absolutely achievable. In fact, more lenders than ever are now offering flexible mortgage options for those who work for themselves.
Why It’s a Bit Different for the Self-Employed When you’re employed, lenders can easily assess your income from payslips and employment history. But if you’re self-employed — whether you’re a sole trader, contractor, or limited company director — your income can look different from month to month. That doesn’t mean you can’t get a mortgage; it just means lenders need a bit more detail to understand your finances. What Lenders Will Look
At Typically, lenders will want to see: Two or more years of accounts or SA302s (tax calculations) from HMRC Your business bank statements to show income stability Proof of ongoing contracts or future work (for contractors or freelancers) A healthy deposit and good credit history Some specialist lenders will consider one year’s accounts, particularly if you have strong income evidence and a good track record in your field. Its always worth having a chat about your own circumstances as there are some unique offerings available. How to Strengthen Your Application:
✅ Keep your accounts up to date – Make sure your figures are accurate and filed on time.
✅ Work with an accountant – Lenders often prefer professionally prepared accounts.
✅ Don’t minimise your income too much for tax purposes – While it can help with taxes, it can also reduce how much you can borrow.
✅ Check your credit report – Ensure it’s accurate and improve it if needed.
✅ Speak to a mortgage adviser early – The right advice can make all the difference in finding lenders who understand self-employed income.
