According to the data, the number of self-employed people is on the higher side. As per recent data, in 2025, it is estimated that 4.45 million people are self-employed. Many of these self-employed buyers face difficulties when securing a mortgage as self-employed. Not knowing where to start, how to prepare as a self-employed buyer, and fluctuating income can make things complicated for first-time buyers.
In this guide for self-employed buyers, we will look at are steps that need to be taken before applying for a mortgage, things to avoid and how to get mortgage approval for the first time with the help of a specialist mortgage broker like Marianna Financial Services.
What lenders are looking for in a self-employed mortgage application
As the number of self-employed individuals grows, including small business owners, freelancers, and contractors operating as sole traders or limited companies, they all work independently. Unlike salaried employees, self-employed homebuyers often face an unstable income stream.
Many lenders are looking for specific income and affordability criteria to be ticked off. Because of this, self-employed buyers are left with limited options for a mortgage. But now the UK mortgage market has slowly adapted needs of self-employed buyers and many specialist lenders are considering complex income types.
What Mistakes To Avoid Being A Self-Employed Buyer
Some of the common mistakes mentioned below to be avoided, or it can cost a self-employed applicant their mortgage approval.
Not disclosing all information: Not telling the full story at the time of application is always seen as a reason for delay or decline.
Incomplete documents: Not providing all documents on time could cause a delay or refusal from the lender.
Reapply again: Making multiple mortgage applications without finding the reason for decline could damage the credit history.
Mitigating these risks by beginning the mortgage process well in advance and seeking guidance from a Specialist Mortgage Expert could increase the chances of mortgage approval for self-employed buyers.
How To Improve Approval Chances for Self-Employed Buyers
Being self-employed, securing a mortgage can be easy if you are well prepared before making a mortgage application. Some of the important steps can improve your mortgage approval chances.
Work with a mortgage specialist: With help from a self-employed mortgage specialist like Fee Free Mortgage Broker, you can secure a mortgage in no time. They are well aware of self-employed specialist lenders and have expertise working with them.
Prepare documents: Having all the mortgage documents ready before starting the process can help reduce the delay. Lenders usually ask for business bank accounts and income proofs.
Work on your accounts: Having clean and clear positive business accounts is essential for self employed mortgage application. This can be prepared with your accountant.
Bigger Deposit: Having a larger deposit can help secure better rates. A higher deposit of 15- 25 % is definitely helpful. Saying that smaller deposit options are still possible.
Work on your credit file: Work on your credit report before a mortgage application. This should be done regularly, as a better credit report is an important factor in the mortgage application.
Why Work With a Mortgage Broker For Self-Employed Buyers
The main reason for mortgage decline for self-employed applicants is not being prepared enough and not being aware of lender criteria and whether they will fit with them. But Mortgage brokers are well aware of each lender’s requirements.
Your mortgage broker will:
- Work on all the documents for you, making sure they are ready in the correct format.
- Make sure your case will fit the lender criteria by finding the best match lender.
- Handle the mortgage application with the bank and all the paperwork needed, keeping you in the loop till you have approval.
Summary
Being self-employed does not mean you can not have a normal mortgage. With good documentation and working with self employed mortgage broker, you can secure the best mortgage deal for self employed. If you are buying it for the first time or remortgaging it, always work with trusted mortgage brokers for the best mortgage rates.
