How to Get a Mortgage as a Freelancer or Self-Employed Buyer in the UK

For freelancers, contractors, and small business owners, the mortgage process can feel like an uphill battle. Unlike salaried employees who have predictable income streams, self-employed individuals must go the extra mile to prove their financial stability to lenders. However, with the right preparation and knowledge, securing a mortgage as a freelancer or self-employed buyer is entirely possible.

Freelancers often feel uncertain about where to begin, making it crucial to understand the mortgage process from the start. This guide outlines what lenders look for and provides key strategies to improve your chances of approval.

What Do Mortgage Lenders Look for in Self-Employed Applicants?

Lenders assess all mortgage applicants based on three core factors:

1. Credit Score – Your credit history helps lenders determine your financial responsibility and likelihood of repaying the mortgage.
2. Income Stability – Consistent earnings over a period of time demonstrate your ability to meet monthly mortgage payments.
3. Affordability – Lenders will evaluate your income versus expenses to ensure you can afford the loan amount.

For self-employed applicants, proving income stability is the biggest challenge. Unlike salaried employees who provide payslips, freelancers and business owners must submit extra documentation to verify their earnings.

What Documents Do You Need for a Self-Employed Mortgage?

To apply for a mortgage as a freelancer or self-employed buyer, you will typically need:

• Two years’ worth of SA302 forms (Personal Tax Returns) – These documents show your declared income and tax payments.
• Company Accounts (for Limited Company Directors) – If you run a limited company, lenders may require your full company accounts.
• Business Bank Statements – These provide further evidence of consistent income.
• Future Income Proof (if necessary) – If you haven’t been trading for two full years, lenders may consider contracts, income forecasts, or client agreements.

💡 Tip: If you work with an accountant, they can help ensure all your financial documents are well-prepared and up to date.

How to Prove a Stable Income as a Freelancer or Business Owner

Consistency is key when applying for a mortgage as a self-employed individual. Here’s how you can strengthen your case:

• Show Steady Earnings: Most lenders require at least two years of stable income. If your earnings fluctuate, averaging your income over two or three years may help.
• Minimise Large Gaps in Income: Lenders may be hesitant if you have long periods with no earnings.
• Use Forecasts or Contracts for Future Stability: If you have upcoming work lined up, providing proof of contracts can reassure lenders.

🚀 Good news: Some lenders offer mortgage products specifically for freelancers and self-employed buyers, so even if your income varies, there are still options available.

Why Your Credit Score Matters for a Mortgage Application

Your credit score plays a major role in determining your mortgage eligibility. A higher credit score can unlock better interest rates and a wider range of lenders.

How to Check and Improve Your Credit Score

• Check your score with Experian, Equifax, or TransUnion.
• Pay off outstanding debts where possible.
• Ensure bills and credit card payments are made on time.
• Avoid making multiple credit applications before applying for a mortgage.

If your credit score isn’t perfect, don’t panic. Some lenders specialise in working with self-employed individuals with less-than-ideal credit histories.

Choosing the Right Lender: Why It’s Important to Shop Around

Not all lenders treat self-employed applicants the same way. Some high-street banks have strict lending criteria, while specialist lenders may offer more flexibility.

How a Mortgage Broker Can Help

A whole-of-market mortgage broker can:

• Identify lenders who are more flexible with self-employed applicants.
• Find the best rates tailored to your financial situation.
• Streamline the application process to improve your chances of approval.

By working with a broker, you gain access to mortgage deals that may not be available directly to consumers.

Getting Pre-Approved: The Importance of a Decision in Principle

A Decision in Principle (DIP) (also known as an Agreement in Principle) is a crucial step in the mortgage process. It gives you an estimate of how much you can borrow and shows sellers that you are a serious buyer.

How to Get a Decision in Principle

To obtain a DIP, you will need to provide:

• Your income documents (SA302s, accounts, etc.).
• Proof of your credit history.
• Details of your outgoings and financial commitments.

Having a DIP in place before house hunting makes your offer more attractive to sellers and speeds up the full mortgage application process.

How Long Does the Self-Employed Mortgage Process Take?

The mortgage approval process can take longer for self-employed applicants due to additional income verification steps.

How to Speed Up the Process

• Prepare all necessary documents in advance.
• Ensure your financial records are accurate and up to date.
• Work with an experienced mortgage broker to avoid common pitfalls.

By being organised, you can minimise delays and improve your chances of securing a mortgage offer quickly.

Final Thoughts: You Can Get a Mortgage as a Freelancer or Self-Employed Buyer

Getting a mortgage as a self-employed buyer may require extra effort, but it’s absolutely possible with the right preparation. By proving financial stability, maintaining a good credit score, and working with a broker to find the right lender, you can successfully secure a mortgage.

At Bennison Brown Mortgages, we specialise in helping freelancers, contractors, and business owners achieve homeownership. If you're self-employed and need expert mortgage advice, get in touch with us today.