Can I get a mortgage if I’m self employed?

Yes, you could still find a mortgage if you are self-employed.

In theory, self-employed borrowers have access to exactly the same range of mortgage products as everyone else. The key is that you will have to be able to prove you have the income necessary to make the repayments on the loan for which you are applying.

Typically, that will require you to have at least two years’ worth of company accounts or tax year calculations (SA302) – to show to lenders (though a few may request three years’ worth). If you are self employed as a contractor, you may also have to provide evidence of work you have already lined up for the future, in order to show that your current levels of income can be maintained.

However, even if you don’t have two years’ worth of records, you may still be able to get a mortgage.

Can I get the same mortgage deals if I’m self employed?

You should have full access to the choice between fixed and variable rate mortgages including tracker mortgages, so there’s no reason to worry about this. Always shop around for the best rate, since some lenders feel more comfortable about self-employed borrowers than others.

Useful tip for the self-employed borrower

There are certain traps that self-employed mortgage borrowers need to watch. For example, your accountant will see it as part of his job to minimise your tax bill using legitimate methods to reduce your taxable income – but this could count against you when applying for a mortgage. Reducing your taxable income might reduce the amount you can borrow from a lender.

Your home may be repossessed if you do not keep up repayments on your mortgage.