Self Employed Mortgages

Yes. Being self-employed doesn't exclude you from qualifying for a mortgage, and there is no distinct 'self-employed mortgage' product. You apply for the same types of mortgages as everyone else, although some lenders may be more accommodating based on your situation.

The key difference is in how lenders evaluate your income. An employed individual provides payslips and a P60, while a self-employed person submits tax returns, certified accounts, and HMRC documents. The standards aren't higher; they're simply different.

Generally, you will need to provide three months of business bank statements, the last two to three years of self-assessment tax returns, and, if applicable, the company accounts for the past two to three years. An accountant's reference and financial projection might also be required.

There's no one-size-fits-all rule. Different lenders use different methods, so being turned down by one doesn't necessarily mean you'll be rejected elsewhere. Typically, lenders review the last two complete tax years. If your income has remained steady, they'll usually calculate an average. If it's fluctuated, they might prefer to use the lower year for caution or give more weight to the most recent year if it was higher.

Yes, it’s possible to obtain a mortgage with just one year of accounts. However, your choices will be more limited than those of applicants with two or more years of account history. While most mainstream lenders are unlikely to approve your application, specialist lenders may consider it.