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How to Get a Mortgage if You’re Self-Employed in London
Securing a mortgage for self-employed people in London can feel like an uphill climb, especially if your income varies month to month or doesn’t fit the traditional payslip model.
But with the right mortgage advice and a lender that understands self employment, you absolutely can get the best mortgage deal for your personal circumstances.
At Strive Mortgages, we specialise in arranging self employed mortgages across London.
Whether you’re a sole trader, limited company director, contractor or freelancer, our mortgage advisors know how to present your financial profile clearly to the right mortgage lenders.
We work with both mainstream lenders and specialist providers who understand self employed applicants and offer flexible self employed mortgage criteria that match your business and income setup.
What Counts as Self Employment?
You’re generally considered self employed if you own more than 20 to 25 percent of a business or earn most of your income outside of PAYE.
This includes:
- Sole traders
- Limited company directors
- Freelancers and gig workers
- Contractors (short-term, day-rate or fixed term)
- Partners in LLPs
Each of these setups comes with different income structures, like net profit, salary and dividend payments, or retained profits. That’s why it’s so important to work with a mortgage broker who understands how lenders assess self employment.
Why Self Employed Mortgages Can Be Challenging (And How a London Mortgage Broker Can Help)
Self employed mortgage applicants aren’t usually penalised, but lenders do expect more documentation and clarity when assessing your mortgage application.
Common challenges include:
- Irregular or seasonal income
- A short trading history (less than two tax years)
- Low declared income for tax efficiency
- Financials involving retained profits or dividends
Many self employed borrowers are declined not because of low income, but because they approach lenders who don’t understand their setup.
At Strive, we match self employed clients with the right mortgage provider to reflect their real affordability and reliable income.
How Much Can You Borrow? Advice from a Self Employed Mortgage Broker in London
Most lenders will offer between 4.5 and 5 times your average income, based on your last two tax years.
In some cases, such as with high earners or under professional mortgage schemes, you may be able to borrow up to 5.5 times income.
How much you could borrow depends on things like:
- The strength of your income and tax calculations
- Your credit score and disposable income
- The value of the property and your deposit
- Your trading history and upcoming contracts
We’ll assess your eligibility, carry out affordability checks, and help you estimate your monthly mortgage repayments before submitting any application.
Documents Your Self Employed Mortgage Broker in London Will Ask For
To apply for a self employed mortgage, you’ll likely need to provide:
- SA302s and tax year overviews (last one to three years)
- Full certified accounts from a registered accountant
- Company accounts and retained profit details (for company directors)
- Personal and business bank statements
- Proof of ID, address and evidence of self employment
Some lenders accept one year of accounts, but most want at least two years of reliable figures.
If you’re a limited company director, your case may be assessed on all the profits of the business, not just your salary and dividend payments.
Can You Get a Mortgage as a First-Time Buyer or Remortgager?
Absolutely! Being self employed doesn’t exclude you from buying your first home or switching to a better mortgage product.
We help:
- First-time buyers with limited trading history
- Self employed borrowers switching from an existing deal
- Clients remortgaging to release equity or reduce their interest rate
Even if your current mortgage deal is ending or you want to improve your monthly repayments, we’ll guide you through product transfers or new deals from different lenders.
Getting a Mortgage with Bad Credit When You’re Self Employed in London
Yes. While high street lenders may be cautious, many lenders take a more flexible view, especially if your credit history issues are minor or historic.
We’ll assess your credit score and find mortgage options that work for your employment status and personal circumstances.
Do Self Employed Borrowers Pay Higher Mortgage Rates? A Mortgage Broker Explains
Not necessarily.
With a good credit score, the right documents, and strong business performance, self employed applicants can access the same mortgage rates as employed people.
We’ll make sure your application is presented correctly to help you avoid paying more than necessary.
How Strive Can Help
We’ve helped hundreds of self employed clients across London find the right mortgage product for their needs.
We:
- Work with specialist and mainstream mortgage lenders
- Understand net profit, retained profits and how company directors are assessed
- Help you prepare the correct documents and meet lender criteria
- Provide expert advice on mortgage protection and planning your repayments on your mortgage
Whether you’re applying for a mortgage for self employed London buyers or refinancing an existing home, we’ll be with you every step of the way.
Speak to a London Mortgage Broker Who Specialises in Self Employed Mortgages
You don’t need to change your employment status to buy a home. With Strive’s support, self employment doesn’t have to complicate getting a mortgage.
It just takes the right broker.
We’d love to hear from you. Get started online or call us on 0330 043 1121 to speak with a mortgage broker who specialises in helping self employed borrowers in London.
Frequently Asked Questions
Yes. While many lenders require two years of tax returns, some accept just one year of trading, especially if you’ve worked in the same industry or have a strong credit score. Our mortgage advisors will help match you with a lender that fits.
It depends. Sole traders are typically assessed on net profit, while limited company directors may be assessed on salary and dividend payments or retained profits. We’ll structure your application around what gives you the best outcome.
Yes, you can. We work with lenders who specialise in self employed mortgage applications involving previous credit issues. Your mortgage deal may depend on the nature and timing of the problem, but options are available.
Not always. Some lenders accept one year of certified accounts or a single tax year overview if the rest of your profile is strong. We’ll assess your full case before applying.
Many lenders will still consider all the profits in your company if you’re a limited company director. With the right supporting documents and a qualified accountant, we’ll present your case effectively to secure the right mortgage.
Strive Mortgages saves you time, hassle & money
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
