Being self-employed is incredibly rewarding—but when it comes to getting a mortgage, it can feel like you’re being penalised for your independence. If you’re a contractor, freelancer, or run your own business in London, chances are you’ve already faced a few raised eyebrows when applying for a mortgage.

In this self-employed mortgage guide, we’ll walk you through the ins and outs of how to secure a mortgage when working for yourself successfully. From understanding what lenders want to know to what documentation you’ll need, we’ve got you covered.

Need expert help with self-employed mortgage advice in London? Call us today on 020 8528 2251 or email hello@conranmortgages.co.uk for a free consultation.

“We understand the complexities of self-employment and simplify the mortgage process for you—no jargon, just straight-talking advice tailored to your situation.”

Understanding Self-Employed Mortgage Challenges

Getting a mortgage when self-employed isn’t impossible, but it certainly comes with extra steps. Lenders need reassurance that you have a stable, provable income, even if it fluctuates throughout the year.

Why Self-Employed Borrowers Face More Scrutiny

Most banks and lenders operate on a risk-based model. Traditional employees can show predictable payslips and P60s, making income easy to verify. On the other hand, if you’re self-employed, your income can be seasonal, project-based, or structured through dividends or retained earnings.

This complexity means lenders will need more documentation and context to assess affordability—hence the importance of knowing the self-employed mortgage requirements.

What Are The Self-Employed Mortgage Requirements?

Understanding lender expectations is key to preparing a successful mortgage application. Here’s what you’ll need.

1. Proof Of Income

One of the most critical elements is providing adequate income proof for a self-employed mortgage. This usually includes:

• SA302 tax calculations (usually last two years)
• Full business accounts (signed by a chartered accountant)
• HMRC tax overview
• 3–6 months of personal and business bank statements

Depending on your structure (sole trader, limited company director, contractor), lenders may look at your salary, dividends, or even retained profit. Some flexible lenders will include all three.

2. Track Record Of Income

Lenders want to see at least one to two years of consistent earnings—the more stable your records, the better. If you’re newly self-employed, don’t worry—there are still new self-employed mortgage options available, though the number of lenders may be limited.

3. Credit History And Deposit

Just like any borrower, you’ll need a good credit score and ideally a minimum 10–15% deposit. However, more deposit means more favourable rates, especially if you’re self-employed.

Looking for more information? Check our detailed guide on Mortgages for self-employed individuals.

Our Process: Simplifying Your Self-Employed Mortgage Journey

At Conran Mortgages, we don’t believe in a one-size-fits-all approach. Here’s how we help self-employed borrowers across South East London.

Step 1: Discovery

We start with a detailed conversation to understand your business, income streams, and plans. Whether you’re a contractor on a short-term gig or a director with complex accounts, we tailor our advice accordingly.

Step 2: Document Preparation

We help you compile the necessary documents—tax returns, accounts, bank statements—and review them before submitting to lenders. This ensures everything is accurate, up-to-date, and framed positively.

Step 3: Lender Matching

Using our whole-of-market access, we connect you with lenders who specialise in freelance mortgages and contractor mortgage products. Many of these won’t be found on the high street.

Step 4: Application & Approval

We manage the whole mortgage application for self-employed individuals—completing forms, speaking to underwriters, and ensuring everything progresses smoothly. If questions arise, we’re your direct line of contact.

How Much Can I Borrow As Self-Employed?

This depends on how a lender assesses your income. Typically, they multiply your provable income by 4.5 (sometimes more, depending on the lender and your debt levels).

For example:

• Annual income: £45,000
• Monthly debt payments: £500
• Adjusted income: £39,000
• Estimated mortgage: £39,000 x 4.5 = £175,500

Lenders differ in what they consider “income”. Some may include:

• Salary + dividends
• Retained company profits
• Daily rate multiplied by working days (for contractors)

Self-Employed mortgage earnings can vary year to year, so some lenders use the average of the past two years, or just the most recent if it’s higher.

Top Tips For Getting A Mortgage As Self-Employed

• Plan: Speak to a mortgage broker well before you want to apply.
• Keep your records clean: Ensure accounts are up-to-date and filed correctly.
• Avoid significant business changes: Lenders prefer stability in the lead-up to your application.
• Minimise expenses: Reducing write-offs may increase your net income for mortgage purposes.
• Check your credit: Use tools like ClearScore or Experian to improve your standing.

Why Choose Conran Mortgages In London?

We’re not just another broker—we’re your mortgage partner.

• No broker fees—ever
• Whole of market access with exclusive deals
• Decades of experience with self-employed mortgages
• Immediate appointments, online or by phone
• London-based advice with local market expertise

Learn more about our mortgage broker in South East London services.

Conclusion

So that’s the guide on self-employed mortgage. Securing a mortgage when you’re self-employed doesn’t have to be daunting. With the proper preparation and a trusted broker by your side, it’s entirely achievable. Whether you’re a freelancer in London, a contractor with fluctuating income, or a director of your own company, there’s a mortgage out there for you.

At Conran Mortgages, we take pride in making your homeownership goals a reality. We know how to present your unique situation to lenders in the best light, saving you time, money, and stress.

Call us now on 020 8528 2251 or email hello@conranmortgages.co.uk for personalised, fee-free advice.

FAQs

1. Can I get a mortgage if I’ve only been self-employed for one year?

Yes, some lenders accept one year’s worth of accounts, especially if you’ve transitioned from a similar employed role or have strong future contracts in place.

2. What’s the best mortgage for freelancers?

That depends on your income structure. Some lenders are freelancer-friendly and will consider contract history or day rates. A freelance mortgage specialist can help you choose the right product.

3. Do I need a bigger deposit because I’m self-employed?

Not necessarily. While a higher deposit improves your chances and rates, many lenders accept standard deposit amounts if you meet other self-employed mortgage requirements.

4. Can I use retained profits in my mortgage application?

Yes, some lenders consider retained profits, especially if you’re a director and keep money in the business. We help present this to lenders effectively.

5. How can Conran Mortgages help me?

We specialise in mortgage advice for freelancers, contractors, and all self-employed individuals. With years of industry expertise, exclusive lender access, and a local London presence, we’re ideally positioned to guide you through every step.