Can self-employed people get a mortgage?
Yes — being self-employed doesn’t mean you can’t get a mortgage. You’ll just need to provide more detailed proof of income. Lenders typically want to see two or more years of accounts, SA302s, or tax returns. A Birmingham mortgage broker will guide you through the documents needed and help present your income clearly — whether you’re a sole trader in Digbeth or a limited company director in Sutton Coldfield. Brokers know which lenders are more flexible and understand the self-employed sector. They’ll also explain how your net income, dividends, or retained profits can affect how much you can borrow, helping you secure a mortgage that suits your business and personal needs.
What documents do I need for a self-employed mortgage?
Most lenders will ask for two years of SA302 forms and tax year overviews from HMRC. Limited company directors may also need company accounts and business bank statements. A Birmingham broker will help you gather the right paperwork and make sure everything aligns. If you use an accountant, they may need to provide a certificate of income. Lenders want to see stable earnings, so any large fluctuations should be explained. The more organised your records, the stronger your application. Brokers know how to present your income to match lender expectations and help reduce the chances of delays or rejections.
Do I need two years of self-employed accounts to get a mortgage?
Not always. While many lenders prefer two or more years of accounts, some will consider just one year if your income is strong and consistent. A Birmingham mortgage broker will assess your situation and connect you with lenders who are open to newer businesses or contractors with provable earnings. If you’ve recently gone self-employed but have a solid track record in the same industry, that can also work in your favour. The key is knowing which lenders to approach and how to present your financials. A broker helps build a case that highlights your reliability, even if your business is young.
How is income assessed for self-employed applicants?
It depends on your trading style. Sole traders are usually assessed based on their net profit, while limited company directors may be assessed on salary plus dividends — or sometimes retained profit. Contractors may be assessed on their daily rate and contract length. Birmingham brokers understand how different lenders calculate income and will match you with one that fits your profile. They’ll also explain how borrowing capacity is affected by income trends, tax deductions, or reinvested profits. By accurately assessing your income from the start, brokers avoid surprises later and help ensure your mortgage is both achievable and affordable.
Can I get a mortgage if my income varies month to month?
Yes, but you’ll need to show consistency over time. Lenders look at overall income trends rather than single months. If you have quiet periods — as many self-employed people do — a broker will help smooth out the numbers and explain seasonal fluctuations. For example, a freelance designer in Birmingham may earn more in winter and less in summer. A broker helps present your income clearly and ensures lenders understand your business cycle. They may also advise on averaging your last two years’ earnings or using the most recent year if income has increased. It’s all about showing financial stability.
What if I took a break from trading during COVID?
Many self-employed people paused or scaled back during the pandemic — and lenders understand this. Some may still want to see a strong recovery since then, but others are more flexible. A Birmingham broker will help you explain any gaps in income and focus on your most recent trading figures. They’ll also identify lenders that take a realistic view of your sector and situation. If you received government grants or had reduced turnover, they’ll help position your case positively. Transparency is key — and with expert help, a temporary dip doesn’t have to stop you from getting a mortgage.
Are mortgage rates higher for self-employed applicants?
Not necessarily. If your application is strong, you’ll have access to the same rates as employed applicants. However, some self-employed people are offered slightly higher rates due to perceived risk or more complex underwriting. A Birmingham broker compares deals across the whole market and highlights lenders that don’t penalise self-employment. They’ll also make sure your documents are in order, which can improve how your application is assessed. Getting the best rate is about preparation and presentation — and brokers know exactly how to help. With the right support, you’ll find competitive options and won’t overpay for being your own boss.
Can I get a joint mortgage if only one of us is self-employed?
Yes — in fact, joint applications often strengthen your position. Lenders will consider both incomes, but the self-employed applicant may need to provide more evidence. A Birmingham broker helps structure the application to highlight the employed income and explain the self-employed earnings clearly. This can make the process smoother and improve your borrowing potential. They’ll also check whether both applicants need to be on the mortgage or whether applying in one name might be better. Whether you’re a couple buying your first home or moving up the ladder, brokers help present a united and compelling application.
Why use a broker if I’m self-employed?
Self-employed mortgage applications are more complex — with extra paperwork, varied income types, and tighter scrutiny from lenders. A broker helps you prepare properly, avoid costly mistakes, and find lenders who understand your situation. Birmingham brokers work with many freelancers, sole traders, and small business owners across the West Midlands, so they know which lenders are flexible and fair. They’ll walk you through every step, handle the admin, and keep things moving. Most importantly, they’ll give you confidence — knowing your mortgage is based on real, accurate information and that you’ve got someone in your corner who truly understands self-employment.
