Securing a mortgage if you are self-employed

It is often a misconception that if you are a small business owner, freelancer or contractor it is harder to get a mortgage. However, this may not be the case with a more organised approach towards a mortgage application.


Lenders are interested in your ability to repay and if you want to be able to choose from a full range of mortgage lenders and mortgage deals, you’ll need to have three years’ worth of HM Revenue & Customs tax returns. Unfortunately, if you have been trading for less than a year, and haven’t done your first tax return you may find it difficult to provide the evidence needed but you could consider making an initial application to get a mortgage in principle based on what you think your income will be. Having less than three years’ worth of evidence is a common problem amongst the self-employed and it will limit the range of lenders available to you, but it doesn’t stop you getting a mortgage.


A lender will want to see your SA302 form that shows your tax breakdown, some lenders might accept tax calculations provided by software. They will also need to see proof of income which can be in the form of invoices or bank statements. In some cases this may need to be approved by an accountant. Expenditure will also be considered when determining an application and a proof of deposit will be required.


The key thing is to understand exactly what all of the evidence is telling you. The sooner you get your accounts in order, the better! The best way to do this is to get an accountant however you don’t want to be overly reliant as you also need to know what goes on with the money inside your business. Another way to go about organising your accounts is to use accounting software to bring your money all into one place.


Other factors that may help you secure your mortgage are a track record of regular work and repeat business, and proof of any steady work in the future. Having a good size deposit will also work in your favour and having a good credit history, not only for you but for your business. Ensure you pay off any outstanding bills before you begin an application.


If you are looking for your first property Fortitudo offers various affordable developments that do not compromise on luxury and are built with extremely high specification. For more information visit

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