How to Maximise Your Chances of Getting a Self Employed Mortgage

Self employed mortgages tips to help you qualify

When you are self employed you are responsible for your own finances and taxes as well as planning your business.  Your planning just just stop there though, if you have plans to take out a mortgage or remortgage then here are 8 tips to help you qualify for a self employed mortgage. Take it seriously because failing to can cost you your ability to borrow entirely or reduce the number of favourable mortgage deals you are eligible for:

1. Maximise Your Earnings

The amount of mortgage you can borrow is based on affordability – your ability to repay your mortgage from your earnings and the amount of income you include on your personal tax return.

Being self employed brings with it the ability to offset business expenses against your income.

Consider your plans for borrowing and how much income you need to include on your tax return to maximise your chances of qualifying for a mortgage.

Mortgage lenders will ask for your tax returns to verify your income so if you haven’t declared it on your tax return it won’t be included when working out how much you can borrow for self employed mortgage purposes.

2. Find an Accountant

Having your tax returns signed and filed off by a qualified accountant will give potential lenders comfort that your returns have been checked and completed by an independent third party.

Even if your taxes are pretty simple, consider paying for an accountant to prepare your taxes to give your self employed mortgage application the best chance of success

3. Use a mortgage broker

A mortgage broker is an expert on all things mortgage and can guide you through the application process.

A broker will advise you on the best mortgages available to you and which ones are most suitable for your personal situation. That way when you do apply, you apply for the most suitable mortgage for your needs, maximising your chances of getting a self employed mortgage.

4. Pay Your Tax

Amongst all the many check a mortgage lender will carry out, you may find that some lender will want to confirm that you have paid your tax bill.  They check this by requesting a download of your Tax Overview from your online HMRC account.  Having unpaid taxes will affect your chances of borrowing, so make sure you have paid your tax in full before applying.

HMRC Tax Calculation & Tax Overview for Mortgage Applications

5 Consider Your Deposit Size

Put simply the larger your deposit, the less you need to borrow which reduces the perceived risk the lender is taking so improving your chances of successfully getting a self employed mortgage.

Typically lenders want you to put down 10% of the property value, however there are 5% deposit self employed mortgage options coming onto the market.

Again, a mortgage advisor can help you find the right mortgage depending on your deposit.

6. Have two years accounts ready at least

Depending on the lender, you will typically need to produce at least 2 years worth of accounts although there are some accepting just one year.

However the more years you can produce, the better chance you have of successfully applying for a mortgage.


The more years you can prove that you earn consistently, you are evidencing to the lender that you have a solid history on which they can see you will be able to pay your mortgage.

7. Pull Your Credit Report

Forewarned is forearmed.

There are many websites where for a small fee or even free you can pull your own credit report.  Your credit report holds information about your credit history and how you have handled credit in the past, and a mortgage lender will use this to assess the level of risk associated with lending you money.

Get your credit report and read it through. If there is anything that you feel may negatively affect your application then discuss it with a mortgage advisor who can advise you on the best course of action.

It will also give you a chance to make any changes to increase your credit score for example if you are not registered on the electoral role, then this will show on your credit report negatively affecting your credit score.

By simply getting on the electoral role you can increase your credit score helping your chances of getting a self employed mortgage.

8.  Get your personal finances in order

Aside from getting your taxes in order, getting your personal finances in order will also help maximise your chances of getting a self employed mortgage.  If you have things like loans, overdrafts or credit card balances these will affect your borrowing power or even ruin any chances of success when applying for your mortgage.  So consider paying these off before you apply for your mortgage.

Equally, standing orders and direct debits can affect the amount you can borrow so take a look at what you are paying for and consider cancelling your commitments, even temporarily, while you are going through the mortgage process.  For example car finance represents a financial commitment that needs to be paid in addition to your mortgage so affects your ability to repay your lender. Consider waiting to buy a new car until after you have completed your mortgage application process.

When you are self employed getting a mortgage is an entirely realistic and achievable and following our top tips you can maximise your chances of not just getting accepted but the amount you are able to borrow.