Self-Employed Mortgages

94 Mortgages advisors have years of experience helping sole traders, partners, limited company directors, agency employees, and other self-sufficient individuals and their families find suitable deals that fit their needs. Contact us now to assist you with your situation.

Self-Employed Mortgage Specialists

With almost 5 million people in the UK classified as self-employed, and this number increasing at an exponential rate each year, the mortgage sector has had no choice but to improve the process for independent workers.

However, many banks, building societies, and mortgage brokers are still more hesitant to lend to contractors, freelancers, and other self-employed individuals because of their concerns about the cash flow of a person with inconsistent earnings streams.

Don't be concerned if you work for yourself and want to buy a home or remortgage your existing property. Even though most lenders will be wary of a self-employed applicant, we regularly offer mortgage deals to the entrepreneur who runs their own business. Self-employed borrowers can get mortgages, all you have to do is know where to look. And thankfully, we're here to help.

Self-Employed Mortgage Advice

At 94 Mortgages, we focus on working as mortgage brokers for self-employed customers and have the experience and understanding to assist borrowers in navigating the varying processes required by different lenders, including big high-street banks and building societies, as well as smaller, more specialised lending businesses. Our knowledge can assist you in locating the most appropriate self-employed mortgage on the market to fulfil your particular needs.

We have established trusted relationships with a number of lenders and can work directly with them to find deals that aren't readily available on the high street. Our proven process ensures we only recommend suitable mortgages, which means you save time and avoid any unnecessary applications.

Do you qualify for a mortgage?

Try our mortgage calculator today to see!

What Does "Self-Employed" Actually Mean?

The term "self-employed" is not always easy to define as it can cover a wide range of working arrangements. The most common types are:

- Sole traders – These are people who run their own business and have no employees. They may work for themselves or be contracted by other businesses.

- Partners – Partners in a business are usually two or more people who share the same level of ownership and responsibility for the company.

- Limited company directors – Directors of limited companies are responsible for making key decisions about how the company is run, although they may not necessarily do any hands-on work themselves.

Why choose 94 Mortgages?

Checking Eligibility

We're specialist mortgage brokers with experience in facilitating mortgages for people of all backgrounds.

We discuss what is important to you, as we understand that everyone has different requirements - then we can compare the mortgage market to find the best deal that is right for you.

We can offer tailored advice from experts who have access to the whole of market.

Finding your Property

We can get you a decision in principle quickly so that you don’t lose the property you've found.

If necessary, we can liaise with estate agents for any paperwork they may require from the mortgage advisors.

Getting your Property

We have a great in-house team to work alongside your advisor and solicitor to make things run smoothly throughout the mortgage process.

We'll assist alongside insurers - from personal insurance to house insurance - to guarantee that you’re protected when you finally get your keys!

Get in touch today to see how we can help.

    Self-Employed Mortgages Frequently Asked Questions

    What are Self-Employed Mortgages?

    Although this phrase is widely used in the mortgage industry, it actually refers to a type of applicant rather than a specific line of goods intended for the self-employed sector.

    So, what distinguishes a self-employed mortgage from a regular one? The way lenders evaluate your income and assess your capacity to repay the loan ultimately determines whether they will accept you. The more readily a lender can determine that you will be able to make the required payments (as well as provide the required, or greater, deposit), the more likely it is that they will offer you a favourable deal to acquire your business.

    How to Get a Self-Employed Mortgage?

    If you're self-employed, there are a few things you can do to increase your chances of being approved for a mortgage:

    - Provide as much documentation as possible about your income and expenditure. This could include accounts, invoices, or payslips from past years that show a consistent earning pattern.

    - Prove that you have a good credit history by providing credit scores and reports from all the main credit agencies.

    - Be prepared to pay a higher interest rate than someone who is employed. The reason for this is that lenders perceive those with self-employment incomes to be more risky borrowers.

    How Much Can I Borrow for a Self-Employed Mortgage?

    When lenders evaluate self-employed mortgage applications, they use different methods to arrive at an income figure. Some may rely on your most recent year's declared income, while others may use an average of the previous two or three years' figures. Lenders might have various criteria for how they evaluate direct revenue, salaries, and dividends from a limited company structure.

    How Much of a Mortgage Deposit Will I Need Because I'm Self-Employed?

    Regardless of your employment status, lenders will typically demand a deposit of at least 10% before they agree to lend you money. This represents a loan-to-value (LTV) of 90%. However, if you have less than three years' accounts or a bad credit history, your provider may insist on a larger lump sum upfront to mitigate some of the risk.

    In general, the higher your deposit, the more likely you are to receive a better rate and terms.

    Can I Get a Self-Employed Mortgage with 1 Year’s Accounts?

    Lenders will evaluate the overall profile of a company's financial records when assessing the requirements for obtaining a self-employed mortgage. Until recently, most lenders had required at least 2 to 3 years of accounts before they would consider you for a self-employed loan. This has fortunately changed, with some lenders now offering self-employed mortgages to borrowers with only 1 year of accounts.

    Here at 94 Mortgages we specialise in the field of both 1 and 2 years’ worth of self-employment accounts and have experience of placing these to the right lender for your circumstances.

    Can I Get a Self-Employed Mortgage with Bad Credit?

    It's difficult to obtain a mortgage if your credit is poor. We specialise in this niche, and we can assist you in obtaining a self-employed mortgage with bad credit. We have access to not only unique services, but also special criteria that are not available to every mortgage broker.

    Self-Employed Mortgages without Proof of Income

    When it comes to mortgage applications, lenders will always demand proof of income. When assessing a possible applicant's affordability, one of the most important factors for lenders is income. This has to be confirmed and documented. As a result, income will almost always have to be shown. Despite this, the mortgage market is moving toward directly verifying income with HMRC, and there are certain lenders that would not require documentation regarding self-employed or employed mortgages if they believe those individuals' earnings are above a certain threshold.

    We are still responsible for verifying and documenting proof of income before submitting an application to a lender. The lenders' intention is to verify income directly with HMRC in order to save time throughout the application process rather than providing genuine mortgages that require no proof of income.

    How Will Lenders Calculate My Income?

    This is largely determined by whether you are a sole trader, a partner in a company, or the owner and employee of your own private business.

    Your average yearly income is determined by your previous years' records, and this will be used by most mortgage companies. They'll then calculate your borrowing limit by multiplying the entire sum by 4, or even up to 5.5 depending on their own criteria.

    Can I Get a Self-Employed Mortgage Using Retained Profits?

    If you own a business and haven't completely taken all of the profits from it, but instead retained them within the company and are looking for a mortgage, you may be eligible for a loan from most high street lenders.

    If you keep profits within the company, this may result in a lot more than your dividend income plus compensation, allowing you to borrow considerably more.

    If you are finding it difficult acquiring a mortgage from a high street lender, there are a number of specialist lenders, like ourselves, who will consider retained earnings into account, and these can be added to your salary drawings to produce a figure for mortgage calculations.

    Can I use Dividend Income to Get a Self-Employed Mortgage?

    If you get regular dividends from an investment, asset, or business you control, you can use those payments to qualify for a mortgage. Demonstrating a one to three year track record of receiving dividends and demonstrating that it is anticipated to continue in the future are the keys to using dividends to obtain approval for a mortgage.

    Getting started is easy

    We offer a modern approach to mortgage advice, in that we can deal with the entire process from start to finish via phone and email, there is no need for long intrusive face-to-face sales appointments with us.



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    Ways to Prove Your Income

    To obtain any loan, you must provide evidence of earnings. These are the most common ways of providing proof of income if you're self-employed:

    Company Accounts


    Accounts are used to explain your company's finances in detail. They'll show how your revenue is structured, such as retained earnings, dividends, director's loans, and shareholders' funds. Company accounts also provide a detailed account of year-end finances and an indication of financial well-being.

    SA302


    This certificate verifies your income and expenses, as well as gross and net earnings for the year, and informs your lender of the information they'll need to do an affordability analysis. When you file your online tax return, download a copy.

    Accountant Certificates


    These are used to assess someone's earnings and can be helpful in some circumstances.

    Documents You Need To Apply for a Self-Employed Mortgage

    - Photo ID

    - Proof of address from a utility or council tax bill

    - Proof of incomes including P60, SA302, and Company Accounts

    - 3 Months bank states from personal and business accounts

    - Deposit, usually a statement of funds

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