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Self-employed mortgage guide

Applying for a mortgage

Getting a mortgage when self-employed

Whether you’re a sole trader, partner, limited company director, contractor or freelancer, you’ll follow a similar process to other borrowers. Just expect to provide extra documents and proof of income.

NatWest mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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When am I considered self-employed? Open in new window

How to get a mortgage when self-employed Open in new window

Self-employed mortgage requirements Open in new window

Find a mortgage Open in new window

Get an Agreement in Principle Open in new window

Can self-employed people get a mortgage in the UK?

Yes, self-employed people can get a mortgage in the UK through lenders and brokers.

Being self-employed comes with many responsibilities. The good news is that it doesn’t have to stop you from getting a mortgage. It might just take a bit more paperwork to prove your income and eligibility.

To help, we’ve created a handy guide with tips on how to secure a mortgage when self-employed, plus what you can do to boost your chances of being accepted.

Key summary

You could get a self-employed mortgage when set up as a sole trader, partnership, limited company, contractor or freelancer.
You’ll follow a similar process to other borrowers but may be asked for extra documents and more proof of income.
Buy to Let mortgages might also be available if you meet the criteria.

When am I considered self-employed?

You’re considered self-employed if you currently own a 20% share or more in a business that contributes the majority of your income.
To meet mortgage requirements, lenders need a clear picture of your earnings. You’ll need to provide proof of your income over the past two years. The exact documents depend on how you receive an income.

When becoming self-employed, you can choose from different business structures and income streams:

Sole traders

Where you own and operate the business yourself and are personally responsible for any profits or losses. Your income is simply any money you make from your work.

Partnerships

Where you share the ownership, responsibilities and operations of a business with someone else, including profits and losses. Your income is your share of any profits.

Limited companies

Where your business and personal finances are legally separated, so you’re not held liable for any losses.

Your income could include a salary or dividends. You may need to show proof of these when applying for a self-employed mortgage.

Contractors and freelancers

Mortgages for freelancers and contractors are also available:

Contractors provide services to clients for a fixed period, or during a specific project.
Freelancers are similar, usually working on a project-by-project basis. They might work for more than one client at the same time.

These workers generally operate as sole traders or limited companies. So, their income could include any profits they earn, salaries or dividends.

When it comes to contractor and freelancer mortgages, lenders might request evidence of contracts, upcoming work, plus information on any gaps between jobs. You might also be asked about your day-rate income if you’re paid a fixed sum for each day worked.

How do I get a mortgage when self-employed?

When applying for a self-employed mortgage with NatWest, there are three simple steps to follow:

Gather your documents: Get your supporting information ready to help us check your eligibility. Take a look at the documents you might need.
Get an Agreement in Principle: This offers a personalised indication of how much you could borrow. It takes less than 10 minutes.
Select a mortgage and apply: You can either apply online or via an appointment with one of our qualified mortgage professionals.

Need extra support? A self-employed mortgage broker could also explain how different products work and your potential options.

Learn more about applying for a mortgage

Self-employed mortgage criteria

You can improve your chances of first-time approval by following these self-employed mortgage tips.

What income will be used when you’re self-employed?

You can be paid differently, depending on how your self-employed business is set up.

If you’re a:

Sole trader: Use your net profit from the last two years. That’s your profit after tax.

Partnership: Use your share of the net profit for the last two years. For example, if the net profit of the business is £80,000 and your share of the business is 50%, you would enter £40,000 as the net profit.

Director: Use your last two years’ salary and dividends.

Information Message

Provide two years of income evidence

When applying for a mortgage with us, you’ll need to provide evidence of your income from your self-employed business.

For example, you’ll require at least two years of certified accounts, your SA302 form and a tax-year overview to help support your mortgage application.

An SA302 form is the official tax calculation you receive after filing a Self Assessment return. It shows your total taxable income.

Learn more about proof of income

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Save a generous deposit

The bigger your deposit, the more self-employed mortgage options you’ll have.

With a lower Loan to Value (LTV), you could get a better mortgage rate, pay less interest each month and potentially pay off your mortgage quicker.

Information Message

Maintain a good credit score

Having a good credit score is very important when applying for a mortgage.

A high credit score means lenders will view you as a responsible borrower. And they’ll be more likely to accept your mortgage application.

Information Message

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What documents do I need for a self-employed mortgage?

When applying for a mortgage as someone self-employed, here are some documents you may need to provide:

Standard mortgage documents

Proof of ID: Like a passport or driving licence.
Proof of address: For example, a driving licence, council tax bill or utility bills dated within the last three months.
Bank statements: Generally covering three months or more.
Proof of deposit: This shows the amount you plan to put down as a lump sum.

Proof of self-employed income (2 years)

Certified accounts: A qualified accountant can prepare these for you.
SA302 form and tax-year overview: These official forms from HM Revenue & Customs (HMRC) help to summarise your income.
Contractors: Evidence of upcoming or past work can prove useful.
Limited company directors: You may be asked for proof of your salary or dividends. Think payslips and dividend vouchers.

Other considerations

Electoral roll: Check you’re registered to help with proof of address and identity.
Credit score: Researching your credit rating in advance can prepare you for any questions.
Gaps in work history: Ensure you can explain any extended breaks between contracts. For example, due to major life events.

Why not start an Agreement in Principle?

It takes less than 10 minutes, plus you can save and continue from where you left off.

More accurate than our mortgage calculator, because it's personalised to you.

Useful to show your estate agent that you're a serious buyer and gives you more confidence in the price of properties you can afford.

Does not impact your credit score

You're not committing to get a mortgage with us but, if you do want one, then you'll need an Agreement in Principle first.

Start an Agreement in Principle Open in new window

Can you get a Buy to Let mortgage if self-employed?

Buy to Let mortgages can be available for self-employed people. Renting out a property could be a useful way to diversify your income. On the other hand, you may need to provide more documentation and evidence to support your application.

Key considerations

Rental coverage: Lenders often ask for a rental income equivalent to 125% of your monthly mortgage repayments.
Proof of self-employment income: They may ask for a minimum annual income of £25,000 too.
Deposit requirements: Deposits for Buy to Let properties can be upwards of 25%.
Tax: You could be liable for Income Tax on rental earnings. This needs to be factored into your Self Assessment tax return.

If you’re self-employed, a mortgage broker might be able to explain your Buy to Let options in more detail.

Read our landlord checklist Open in new window

How much can you borrow when self-employed?

A range of factors may affect the amount you can borrow on a self-employed mortgage. These include:

Whether it’s an individual or joint mortgage application
Your typical monthly spending and income
Credit reports
Your ability to handle interest rate rises.

For an estimate of what you could borrow, try our mortgage calculator.

Help with common self-employed mortgage questions

How long do you need to be self-employed for to get a mortgage?

You’ll need to be self-employed for at least two years. This will help with the mortgage application process to ensure that you have a reliable income to cover the costs.

How do I prove my income for a mortgage when self-employed?

For proof of income, the main documents that you’ll need are two or more years’ certified accounts, your SA302 form and a tax-year overview from HMRC.

Certified accounts simply mean that your business accounts have been independently checked and signed off by a professional accountant.

Does being self-employed affect getting a mortgage?

Being self-employed shouldn’t affect getting a mortgage as long as you’ve been self-employed for at least two years and can show your required proof of income.

Do I need a self-employed mortgage broker?

No, you don’t need a broker for a self-employed mortgage application. Some people choose to get one to help them with the process, but it’s not essential. You can apply directly for a mortgage through lenders like NatWest.

Your accountant could help you understand your self-employed income before you apply.

Can I get a joint mortgage if one of us is self-employed?

Yes, you should be able to apply for a mortgage even if you or your partner is self-employed. Your application will be for a joint mortgage, with both names listed on the borrowing agreement.

Just remember that you’ll both be responsible for the mortgage repayments. So, if your partner was unable to work for a period, you’d still need to cover the full monthly repayments on your own.

How can I improve my chances of getting a mortgage when self-employed?

There are no guarantees when applying for self-employed mortgages. But you could improve your chances of approval with a few steps:

Use a qualified accountant when preparing important documents.
Check you’re on the electoral roll.
Raise the biggest deposit you can.
Work on improving your credit score in the months before an application.
Try to keep your business structure and income streams consistent.

Can freelancers get mortgages?

Yes, freelancer mortgages may be available to those who work across different clients. However, lenders will require evidence of a steady income stream, generally going back at least two years.

Do lenders accept dividends as income?

Some lenders may accept dividends as part of their income assessment for a self-employed mortgage. For example, if a limited company director has received dividends as payment. However, you’ll usually need to provide 2-3 years of evidence.

Need more information about our mortgages?

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Need some help?

Call us

We're on hand to arrange a phone or video call with one of our qualified mortgage professionals. We can also help with any general queries about the process.

Call us on ${dn-0800 096 9527}

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Opening hours: Mon-Fri 8am-6pm, Sat 9am-4pm, Sun Closed. Excluding public holidays.

Buy to Let? We only provide Buy to Let mortgages online for small portfolio landlords.

Please use our tools and guidance designed to help you complete your mortgage application online.
We do not provide advice on Buy to Let mortgages but if you need technical help with your online application, get in touch so we can provide support.
If you are not a small portfolio landlord, or you wish to apply with a mortgage professional, NatWest Buy to Let mortgages are available via mortgage brokers.