Can I apply for a mortgage if I am self-employed?

Many people may fear that by working freelance or as a contractor they will never be approved for a mortgage. While it may be a more difficult process than if you were an employee, it is by no means impossible!

Most banks look for 3 years certified accounts and confirmation that your tax affairs are in order. They will look at the profits the business is making to calculate what level of mortgage you can afford and not how much you pay yourself from the business.

This can make it very difficult for start-up businesses as they do not tend to make profits for first couple of years.

Being self-employed should not stop you from applying for a mortgage, however, as if your business is well established, it can support your personal living expenses plus any potential mortgage repayment and your taxes are up to date, you are just as likely to get an approval as anybody else.

Date published 30 Apr 2019

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.