Best Mortgages for Self-Employed in 2025

Can I get a mortgage being self-employed?

Yes, self-employed individuals can absolutely get a mortgage! While the process differs slightly from that of traditional employees, it’s entirely achievable with the right preparation and guidance.

Why is it more difficult to get a mortgage being self-employed?

Unfortunately, it is the case that self-employed worker face stricter requirements from lenders (although this isn't always true!) This is because of a perceived higher risk of income instability, as you don't have someone else signing your checks every month.

Traditional mortgage lenders often prefer stable, salaried employees with a predictable income and employment history. As a self-employed buyer, you may have fluctuating income, multiple streams of revenue, or a shorter track record of self-employment - which are unfortunately all factors that can make it challenging to meet traditional mortgage lending criteria. If you minimise your taxable income via expenses, it might decrease your borrowing potential too - even if your actual earnings are higher.

However, don't worry; there are still plenty of options available to help you secure your dream home.

What mortgage options do I have as a self-employed worker?

Luckily, being self-employed does not limit you to one type of mortgage. There are lots of various options available that cater to different needs and circumstances - from self-employed mortgages to alternative lenders!

Let's take a look at these options in detail.

1.) Self-employed mortgages

Although UK lenders no longer offer 'self-employed' or 'self-certification' mortgages as of 2009, there are some lenders who specialise in providing mortgages specifically designed for self-employed individuals. These may include options such as interest-only or a more flexible borrowing capacity based on actual earnings rather than taxable income.

2.) Traditional mortgages

Depending on your circumstances, you may still qualify for a conventional mortgage through traditional lenders. Keep in mind that you will likely need to provide more documentation and potentially have a higher down payment to offset any perceived risk.

3.) Credit Unions and Alternative Lenders

Credit unions and alternative lenders can be more lenient when it comes to self-employed individuals. They may consider other factors beyond just taxable income and offer more customised solutions.

How can I improve my chances of approval?

If you’re self-employed, getting a mortgage as a first-time buyer versus remortgaging or buying a second property has some differences. For first-time buyers who are self-employed, the focus is often more on proving your affordability. However for those looking to remortgage, you might need to think more about income trends and leveraging equity to ensure you get the best deal possible.

Let's look at this in more detail.

First-time self-employed buyers

For first-time buyers, mortgage lenders will be keen to assess how much you can borrow based on your recent financial history. To boost your chances and secure competitive rates:

• Have at least 1-2 years of income history with proper documentation.
• Use a mortgage recommendation tool to estimate your borrowing potential, as well as indicative repayments and interest rates.
• Save for a sizeable down payment, as it can open up more mortgage options.
  

Self-employed remortgagers or second-time buyers

If you're remortgaging or upgrading to a larger property, you may already have a mortgage track record, which can work in your favour. Here are some tips for self-employed remortgagers:

• Leverage equity: If your home’s value has increased since your first purchase, you may be able to borrow more or access better mortgage deals.
• Review your income trends: Some lenders may look at recent financial performance (typically the last 1-2 years), so ensure your records highlight your successes.
• Check market rates: Use tools and expert advisors to find the best self-employed mortgage deals tailored to your situation.

How to get a mortgage when you’re self-employed

The process of securing a mortgage as a self-employed individual can be a very straightforward process if you’re well-prepared.

1.) Prepare your financial records: As most lenders will require two years of self-employment history before considering someone for a mortgage. Ensure your financial documents are well-organised and up-to-date. Lenders typically require:

• Tax returns from the past two years.
• Current profit-and-loss statements.
• Providing contracts or letters of agreement with clients can also demonstrate consistent income.
• A good credit score.

2.) Understand lender requirements: Requirements vary by lender, but these are factors you can plan ahead for. Some lenders may ask for:

• A larger down payment.
• A higher credit score. .

3.) Work with a mortgage broker: An experienced broker can guide you through the process and understand your unique situation. They’ll help you navigate the requirements and improve your chances of approval.

With careful planning, being self-employed doesn’t have to be a barrier to owning your dream home!

What are the best mortgages for self-employed buyers or remortgagers in 2025?

To find the best mortgage for you, it's important to explore your options - because the "best" mortgage might not actually be the one that is most suited to your financial situation.

When trying to figure out which deal works best for your finances, it's important to talk to an expert mortgage broker. They’ve got access to tons of lenders and products, and can point you toward the most competitive rates - or the deal that's best suited to your needs.