How to apply for a mortgage if you are self-employed

Can you get a mortgage if you’re self-employed? 

Self-certification mortgages used to be a standard way for self-employed business owners to qualify for mortgage products. However, following the 2008 credit crunch, self-certification mortgages were judged to be a factor in the financial crash and the Financial Conduct Authority (FCA) banned them in the UK. A self-employed person now has access to the same mortgages as an employed person. Some lenders may market themselves as specialising in mortgages for the self-employed but most will routinely grant the required funds to self-employed people, so in most cases there’s no need to use a specialist. 

However, in reality, a self-employed person now has access to the same mortgages as an employed person. Some lenders may market themselves as specialising in mortgages for the self-employed but most will routinely grant the required funds to self-employed people, so in most cases there’s no need to use a specialist.

How mortgage lenders assess self-employed income 

A lender will require evidence to verify the income a self-employed person declares. They will normally want to see a profitable business for the period for which they have requested evidence. They will be looking for a business that has steady or growing profits; not profits that are dramatically fluctuating from year-to-year or falling. 

Banks may also look at the balance sheet of the business. Where assets exceed liabilities, this will indicate a stronger, and more healthy position. 

Each provider will have different criteria but typically, they will ask a self-employed person for:

• passport of driving licence (proof of ID) 
• recent utility bills (proof of address) 
• bank statements for three to six months (spending and affordability) 
• evidence of deposit money 
• the last two or three years’ of business accounts certified by a qualified accountant
• the last two or three HMRC forms SA302 and/or corresponding HMRC tax year overviews

How to get the SA302 

An SA302 is essentially your tax computation produced by HMRC, and it will show your taxable income and how your tax liability has been calculated. 

To get your SA302, you will need to login to your Personal Tax Account and print it. You can also access your Tax Overview this way.  

If you’ve lost your log-in details, it can take seven days to replace them. If you are new to HMRC’s online services, it can take up to 10 days to activate the service for the first time.   

HMRC is also increasingly using 2-Step Verification. This is an additional security feature which helps to prevent unauthorised access of your Personal Tax Account. If 2-step verification is enabled, you will need your log-in details and HMRC will send you a one-off, time-sensitive access code via text message to your nominated mobile phone number, which you will also need to enter. 

Sole traders and partnerships 

For sole traders, the lenders will look at what profits your business makes and in the case of partners, your share of the profits.

Limited company directors 

If you are the director of a limited company, mortgage providers will look at a combination of:

• the salary you take from the company,
• the company’s profits and
• the dividends you receive
• levels of distributable reserves in your company – the profits available to distribute as dividends. 

Contractors and freelancers 

If you are a contractor, you may need to show evidence of future contracts. 

10 practical tips to improve your mortgage application 

1. File tax returns on time – you’ll avoid penalties and interest but also look more responsible and less likely to default on your mortgage payments. 
2. Keep accounts up to date – don’t leave everything until year-end. You’ll save yourself stress, reduce the chance of missing tax or Companies House (limited companies only) filing deadlines and ensure lenders have the most accurate information. 
3. Improve your credit profile – simple steps like ensuring you are on the electoral roll and using (and repaying on time) some credit to build your credit score can make a big difference. But … 
4. Reduce unnecessary debt – balance improving your credit profile with ensuring any debt you have is manageable or your cashflow may be affected by high repayments. 
5. Build a larger deposit where possible – a larger deposit means a lower Loan to Value (LTV) ratio. Lower LTV ratios often mean lower interest rates are available to you. 
6. Separate business and personal finances – using a separate business bank account gives a clean view of your business’ finances when sharing statements with lenders, as well as reducing the chance of ‘dipping in’ to your business account for everyday spending, increasing the time taken to sort your bookkeeping. 
7. Avoid major financial changes before applying – attempting to explain your forecasts as a landscape gardening business isn’t easy when your accounts show your income is from painting and decorating! 
8. Demonstrate stable income – lenders are risk averse so like to see recurring income or similar income profiles over several years, rather than extreme volatility  
9. Maintain clear records – contemporaneous records are much more likely to be accurate. Using online accounting bookkeeping packages such as QuickBooks or Xero alongside a receipt tracking app such as Dext can help you do this with ease, as well as preparing you for Making Tax Digital for income tax.  
10. Consider specialist mortgage advice – brokers can walk you through the process, help with the application and find mortgages that you may not have access to yourself. They may also have some experience of which lenders might be more flexible if business owners don’t have the required accounts or tax returns for example. 

The benefits of using an accountant

Some lenders insist that accounts are prepared by an accountant and sometimes stipulate what qualifications they must hold, so bear this in mind if you’re looking to appoint someone to help you.

If you can’t access your Personal Tax Account or you need the figures urgently, an accountant may be able to help you in several ways:

• in accountant has compliant software, they may be able to produce the SA302 for you, or
• they can prepare the accounts or tax returns that the bank is asking for.

How TaxAssist can help you

We can help ensure your accounts and other financial documentation is up to date and presented with the clarity mortgage lenders need. TaxAssist Accountants can also introduce you to our trusted mortgage broker partner. Call now on 020 7401 8384 or use our easy online contact form.  

Last updated 30 Jul 2026 | First published 20 Sep 2017

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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