Documents Needed for a Self-Employed Mortgage

Get in touch today to discuss the most suitable mortgage option for you.

What counts as Self-Employed?

You need to own at least 20% of a business to be deemed Self-Employed and have this as your main source of income. You can be a sole trader, part of a partnership or a Limited Company Director.

You will need to prove your income regardless of what Self-Employed category you fall into when trying to access mortgage products. It is important to have your documents ready to prove to your lender your income. It is advised to reach out to an accountant to further help you to gather your documents and to ensure you have filed your taxes correctly.

Proving your income as a Sole Trader

You will need to gather all of your HMRC Tax Calculation and Tax Overviews dating back as far as two years.  

Proving your income as a Limited Company Director 

You need to provide a lender with your Director’s salary as well as any dividends that you pay yourself. If you have retained profits within your business, you may need to find a specialist lender who will allow for these to be factored into the calculation when it comes to how much of a mortgage you are allowed. A small but significant number of lenders do accept retained profits towards your mortgage loan. You will need to gather all of your HMRC Tax Calculation and Tax Overviews dating back as far as two years.  

Proving your income as a Contractor

As a contractor you will need to provide as many contracts as you can to prove that you have a regular stream of work. If you have a lot of gaps between contracts lenders will ask why so it is best to try and avoid this. If you are on a day rate, then lenders will usually multiply this out to work out an annual income.

Proving your income as a Partner

If you are a member of a team you will need to provide your share of the net profits as well as any dividends you have. Yet again, if you have retained profits tied up in the business it can be worth seeking a specialist lender as not all lenders will factor this figure into their calculations. You will need to gather all of your HMRC Tax Calculation and Tax Overviews dating back as far as two years.  

How do you go about getting a mortgage if you are Self-Employed?

You should first gather all of the documentation you are going to need for your mortgage. This is proof of address, bank statements and council tax bills as well as proof of your income. It is so important to make sure that you have your finances and documents in order before approaching a lender.

Once you have gathered all of your documentation you need to make sure you have your deposit ready. Typically, you can expect to provide up to 10% of the property’s purchase price as a deposit. If you happen to be a first time buyer there are government schemes that you can access which allow you to access properties with a 5% deposit.

You need to ensure your finances are in order and any debts that you owe are settled. Mortgages are a lot about timing too, it is much better to wait for all of your debts to be paid off to access lower mortgage rates. A bad credit score can land you the label of a high risk borrower which will greatly affect the rates you are offered.

You need to find a Mortgage Broker who can help you navigate through the mortgage market. As someone who is Self-Employed it is going to be worth exploring different lenders and finding lenders that cater more towards your field of work.

How can Mortgage Marketplace Brokers help me? 

Here at Mortgage Marketplace, we have access to the independent mortgage market meaning we can access deals that will not be offered by high street lenders. We are also authorised and regulated by the Financial Conduct Authority meaning we are qualified to give the advice you seek. As someone who is Self-Employed you have a lot more documentation to gather in comparison to a PAYE employed worker.

We keep up to date with the latest happenings in the mortgage market and will be upfront and honest about your chances of getting a mortgage. There are a lot of different mortgage lenders out there who do cater towards the Self-Employed mortgage applicant, so it is worth speaking to an expert who knows where to find them.

It can be daunting approaching a mortgage as someone who is Self-Employed but there is no need to be afraid – we can help you with what documents you are going to need as well as catering and tailoring the lenders we pick out to your specific situation. Get in touch with an expert Mortgage Broker today to start your mortgage application journey.

Frequently Asked Questions

Call us today on 0800 170 7474 to discuss your borrowing potential and eligiability.

We believe in being competitive and transparent on fees.

Your initial mortgage consultation is free. You won’t be asked to pay a fee until we have submitted an application on your behalf.

Our fees depend on the product – see the list below or speak to an advisor.
Residential Mortgage & Remortgage
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee of £595.00 payable on receipt of mortgage offer. Total fees payable – £990.00.

Buy-to Let Mortgages & Remortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee from £595 up to 0.50% of the mortgage offer. For example, loan amount £200,000, broker fee payable could be £1,000.00. Total fees payable £1,395.00. A minimum broker fee of £595.00 will be applied on all buy-to-let applications.

Equity Release Mortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee of £1100.00 payable on completion of your mortgage. Total fees payable – £1,495.00.

Credit Repair Mortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee equal to 0.5% of the mortgage offer. For example, loan amount £200,000, broker fee payable could be £1,000.00. Total fees payable – £1,395.00. A minimum broker fee of £595.00 will be applied on credit repair applications.

Life Insurance
No fee will be charged by us. You will receive a free quotation from the policy provider.

Typically, the mortgage process will take 2-6 weeks to reach approval.

A mortgage offer is usually valid for 6 months.

Please be aware, the process is currently taking longer due to Covid-19. Please see question ‘How has Covid-19 affected the mortgage market?’.

Whilst you are not required to take out a life cover, our job is to ensure your mortgage is affordable, no matter what. It may not be nice to talk about, but if something were to happen to you, you want to know your family and investment are safe.

We will advise on all the options available and provide a no obligation quote from our partner providers.

You may need a solicitor, depending on the circumstance. Your adviser will discuss this with you, and should you need one we can put you in touch with our trusted partners, or you can use you own.