What you need for a self-employed mortgage comes down to four things: a provable income from your filed figures, a trading history a lender accepts, a deposit of around a tenth of the price or more, and a credit record without recent problems. There is no separate self-employed product and no penalty rate, just a different set of evidence in place of payslips. Meet the requirements and you are assessed on the same terms as an employed buyer. This page sets out each requirement in turn, the paperwork that proves it, and where the rules flex, so you know exactly what to have ready before you apply.
What the requirements really come down to
- One full year of accounts can be enough with the right lender.
- The same deposit and rates as an employed buyer.
- Sole traders, partners and company directors all qualify.
- Tax calculations and accounts are the core of what you need.
- A clean recent credit record matters more than a long one.
The trading history a lender expects
The first requirement is a track record a lender is comfortable with. Most lenders want two full years of figures and some ask for three, but this is not a fixed wall. A growing number will lend on one full year of accounts or a single set of tax figures where the business is established and the income looks sustainable, and some give weight to earlier experience as an employee in the same line of work. What every lender is testing underneath the rule is the same thing: is the income stable and likely to continue. A clean year with a clear pipeline of work can satisfy that test better than a longer but uneven record, which is why a short history narrows the choice of lender rather than closing the door.
A provable, sustainable income
The second requirement is an income a lender can read and rely on, and the figure they use depends on your structure. A sole trader or partner is usually assessed on the net profit, or share of profit, shown on their tax calculations. A company director is most often assessed on salary plus dividends, while a smaller group of lenders use salary plus the profit retained in the company. The figure that counts is the provable, sustainable income from your accounts rather than your turnover, so a business with high takings but modest net profit borrows on the profit. Our pillar guide to self-employed mortgages explains how each method works in detail; the requirement here is simply that the income is clear, consistent and documented.
The documents you need to have ready
Self-employed applications run on documents, and assembling them is the most practical part of meeting the requirements. Expect to provide your tax calculations, often called SA302s, together with the tax year overviews that confirm the tax was paid, both available from HM Revenue and Customs. You will also need your finalised accounts prepared by an accountant, and personal and business bank statements usually covering the last three months. Company directors should expect to show the company accounts as well. Proof of identity, proof of address and evidence of where your deposit has come from complete the set. Where these documents agree with one another, an underwriter can move quickly; where they do not line up, the case stalls while the gap is explained.
Want to know which requirements you already meet and which need work? Tell us your structure and your figures and we will tell you where you stand.
Start the 60-Second CheckThe deposit requirement
The deposit you need is the same as for an employed buyer. A deposit of around a tenth of the purchase price opens the mainstream market, and more than that opens it further and eases the affordability test. No lender asks for a larger deposit simply because you are self-employed. Where a bigger deposit helps is indirect but real: it widens the panel of lenders willing to read your income a particular way, and a wider panel is what most often turns a borderline self-employed case into a comfortable one. You will also need to show where the deposit has come from, so keep a clear record of savings or any gifted funds.
The credit and affordability checks
Lenders apply the same credit and affordability rules to a self-employed borrower as to anyone else. On credit, a clean recent record matters more than a long one, so keep your personal and business banking tidy, stay within your limits and avoid taking on new credit in the months before you apply. On affordability, most lenders work to an income multiple in the region of four and a half to five times your assessed income, then test that the repayments stay affordable at a stress rate above the pay rate, with your other commitments taken into account. Because a self-employed case already asks an underwriter to settle your income figure carefully, a clear credit file removes one more question and lets the decision rest on the numbers.
Meeting the requirements for a self-employed mortgage is rarely the hard part. The work is matching the requirements you meet to the lender that reads them most generously.
How the requirements change with your structure
The same headline requirements apply whether you are a sole trader, a partner or a company director, but the evidence behind them shifts with how you are set up. A sole trader or partner leans on tax calculations and accounts that show profit. A company director adds the company accounts and needs to think about whether salary and dividends, or salary and retained profit, presents their income best. If you own a fifth or more of a company, most lenders treat you as self-employed even where you feel employed by your own firm, which changes the paperwork they ask for. Knowing which box you sit in decides which figures a lender counts, and so which version of the requirements applies to you.
What can make the requirements harder to meet
A few things make the requirements tougher, and most are manageable with planning. Income that falls from one year to the next makes a lender cautious, because many lend on the lower year, so timing an application after a stronger year can help. Drawing a small salary and leaving profit in the company can understate your income with lenders that count only salary and dividends, where a lender that counts retained profit would read you more generously. A very short trading history, or accounts that do not yet agree with your tax calculations, narrows the field too. None of these closes the door; each simply points to a particular kind of lender, which is exactly the judgement a broker is there to make.
How does Mortgage One help?
Mortgage One is a countrywide UK mortgage broker with access to plans from the whole of market, and we arrange self-employed mortgages as a regular part of the business. We check the requirements against your circumstances, confirm which income figure each lender will use for your structure, and tell you what to have ready before you apply so nothing holds the case up. We then match your filing history and your accounts to lenders comfortable with them and present your case so an underwriter can say yes first time. We are authorised and regulated by the Financial Conduct Authority (FCA) for the mortgage advice, and you must be on UK soil to receive advice, so we confirm your circumstances properly before recommending anything.
Ready to know whether you meet the requirements rather than guess? Let an adviser review your self-employed income.
Check Your OptionsFrequently asked questions
What are the requirements for a self-employed mortgage?
There is no single checklist, because each lender sets its own rules, but the core requirements are consistent: a provable income from your filed figures, a trading history a lender accepts, usually one to three years, a deposit of around a tenth of the price or more, and a credit record without recent problems. You also need your paperwork to agree with itself, so your tax calculations, your accounts and your bank statements tell the same story. Meet those and you are assessed on the same terms as an employed buyer.
How many years of accounts do you need to be self-employed for a mortgage?
Most lenders want two full years of figures and some ask for three, but the requirement is not fixed. A growing number will lend on one full year where the business is established and the income looks sustainable, so a shorter record narrows the choice of lender rather than removing it. What every lender is really testing is whether your income is stable and likely to continue, and a clean year with a clear pipeline of work can read better than a longer but uneven one.
What documents does a self-employed person need for a mortgage?
Plan for your tax calculations, often called SA302s, with the tax year overviews that confirm the tax was paid, both from HM Revenue and Customs, your finalised accounts prepared by an accountant, and personal and business bank statements covering the last three months. Company directors should also expect to show the company accounts. Proof of identity, proof of address and evidence of your deposit complete the set. Having these ready and consistent with each other is what most often keeps a self-employed application moving.
What deposit do you need for a self-employed mortgage?
The deposit requirement is the same as for an employed buyer. A deposit of around a tenth of the purchase price opens the mainstream market, and more than that opens it further and eases the affordability test. There is no extra deposit demanded simply because you are self-employed. A larger deposit can help in a different way, by widening the panel of lenders willing to read your income a particular way, which is where a self-employed case is usually won.
Do you need a good credit record to get a self-employed mortgage?
Lenders look at your credit record the same way they would for any borrower, and a clean recent history matters more than a long one. Keeping your personal and business banking tidy, staying within limits and avoiding new credit in the months before you apply all help. Because a self-employed case already asks an underwriter to read your income carefully, a clear credit file removes one more question and lets the application focus on the figures.
Can you get a self-employed mortgage without two years of accounts?
Often yes. A handful of lenders will consider a single full year of accounts or one set of tax figures where the trading history is strong and the income is steady, and some will take into account earlier experience as an employee in the same line of work. A shorter record changes which lenders fit rather than ruling you out, so the task is to match your filing history to a lender comfortable lending against it rather than waiting another tax year when you do not have to.
Turn your figures into an offer
You have the documents. The difference is how they are presented to the right lender. Take the 60-second check and we will show you the lenders most likely to say yes to your income.
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