Explore our expert guides designed to help self-employed applicants understand mortgage options, improve affordability, and navigate the application process with confidence.
Self-Employed Mortgage Calculator
How much could you borrow?
Try our self-employed mortgage calculator, no credit checks needed! It only takes a few minutes to see how much you might be able to borrow based on your income.
Fundamental guides for self-employed borrowers
Mortgages for CIS workers
Understand mortgage options if you’re in the construction industry scheme.
Mortgages for company directors
Find out how company directors can prove income and get mortgage-ready.
Mortgages for contractors
What contractors need to know to get approved for a mortgage confidently.
Freelancer mortgage tips
Determine key mortgage tips and advice designed specifically for freelancers like you.
Only one year’s accounts?
Learn why having one year’s accounts may be enough for lenders.
Sole trader mortgages
How sole traders can demonstrate affordability to lenders.
Zero-hour contract mortgages
Get advice if you work on zero-hour contracts and want a mortgage.
Frequently asked questions
The amount you could borrow will depend on the lender used. This is because each lender has their own way of assessing and calculating your affordability. A lender will look at your income and expenses, which will help them determine what you can comfortably afford.
When you are self-employed some lenders will look at your latest year’s tax return to help them decide. Although, there are others that will look at the past two to three years and then take an average.
As a general rule the larger your deposit and greater your income, the more you can borrow. However, if you are seen as a lending risk because of bad credit, it could reduce your borrowing capabilities.
To give a rough guide, you could borrow up to 4.5x your annual income. This is very similar to what someone in conventional employment could borrow. If you want to discuss your mortgage options, reach out today.
Again, as with your borrowing capabilities, your deposit amount will depend on the lender.
Nowadays you’ll usually need a minimum of 5–10% of the property’s market value. Although, the average deposit in the UK is closer to 20%.
This is due to the fact that a larger deposit allows you to access more favourable deals with better rates, saving you money in the long run due to the saving on interest.
To read more about deposits, you can read our complete self-employed guide.
Lenders usually require you to have been self-employed for at least a year, as they need to look at your accounts during their affordability assessment. If this is the case, they will also assess your employment before you turned self-employed.
Keep in mind that certain lenders may require 2 or 3 years’ worth of accounts.
However, just because you have only been trading for a year doesn’t mean you could borrow less. The income you receive will play a large part in what you could borrow.
Darryl
Verified user
I was happy with how responsive Jordan was initially. But I voiced a concern to Jordan on 22/11/2024 that he might not have been a whole of market broker as he did not place me with the lowest overall rate available to me. I also voiced concerns that he advised me that I had to go with a 10% deposit although I preferred a 5%. I was surprised that he did not take this matter as a complaint but advised that he didn't want to "affect" my mortgage application. This left me feeling that if I pressed the issue I would not get the mortgage that I qualified for. I would have liked this issue raised as a complaint so that I could have had the best rate and terms available to me and that is the reason for the score. I did refer some people to Jordan but I did advise them to ensure they got the best rate from the 'whole of market'. Jordan no longer returns my calls.
Read moreUnited Kingdom, 6 days ago