If you’re self-employed, getting a mortgage can feel like trying to solve a Rubik’s cube blindfolded. Salaried workers have payslips; you have invoices, tax returns, and maybe a Ltd company account. So how do lenders decide if you’re a good bet? Insider tips from our Crunch mortgages team are here to guide you. 

1. Show your income, loud and clear

Lenders need proof you can pay the mortgage. For self-employed people, this usually means 2-3 years of SA302s or tax returns. Ltd company directors will need business accounts showing salary, dividends, and retained profits. One year might work for some lenders, but two is the gold standard.

Tip: The more transparent your income, the smoother the approval.

2. Affordability isn’t just a number

Lenders calculate how much you can borrow based on your net profits (sole traders) or salary + dividends + retained profits (Ltd directors). Expect 4-5 times your income, though it varies between lenders, so speaking with one of our Crunch mortgage brokers will help you to secure your borrowing with the right lender to suit your needs. 

3. Stability sells

A business with at least two years of trading history is more attractive to lenders. Freelancers and contractors should have bank statements or ongoing contracts ready to prove consistent income. A contractor can also use their day rate figure to annualise their income and our brokers know exactly which lenders to approach for these clients. 

4. Bigger deposit means better chances

Most self-employed applicants need a 10-20% deposit. Some of our specialist lenders accept 5%, but larger deposits reduce lender risk and can get you better rates.

5. Your Accountant is your secret weapon

Certified accounts add serious credibility. Some lenders even want an accountant’s reference confirming your income and business health. If you are a Crunch Accounting client, we don’t charge for providing accounts for the purpose of a mortgage application. We are all on the same team and here to help you through this process as smoothly and as quickly as possible. 

6. Your industry matters

Lenders consider industry risk. High-risk sectors face stricter rules, but stable industries like IT contracting or healthcare may have specialist mortgage products available. Again, we know which lenders favour which industries, so let us guide you to avoid you potentially being declined by a high street lender. 

7. Keep your debt in check

A lower debt-to-income ratio boosts your eligibility. Lenders want proof you can comfortably handle your existing debt plus your new mortgage.

8. Organise your documents early

Prepare everything lenders will ask for:

• Personal and business bank statements
• Proof of future contracts (for freelancers)
• Evidence of retained profits (for Ltd companies)

Remember, organised paperwork = faster approvals.

9. Plan ahead

Keep your finances tidy and maintain transparent records. Lenders like applicants who make their financial picture easy to read and speaking to a broker early on can help advise you on this. 

Being self-employed doesn’t mean you can’t get a mortgage. With the right planning, clear records, and a solid understanding of what lenders want, you can position yourself as a reliable borrower, and secure the home of your dreams.

Talk to one of our specialist brokers today for a chat and find out what’s achievable for your mortgage 

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