Documents Needed for a Self-Employed Mortgage

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Documents Needed for a Self-Employed Mortgage

Self-Employed applicants don’t require a special type of mortgage product, they have access to the vast majority of the mortgage products currently on the market. The only noticeable difference between an application by a Self-Employed applicant and a PAYE applicant is that Self-Employed applicants will need to provide proof income covering a longer period of their working history.

The purpose of the additional proof of income, which will usually need to cover two to three years, is to allow Mortgage Lenders to establish an average income that is a more realistic reflection of your long-term income. As there is ordinarily a degree of fluctuation in income when you’re Self-Employed, this process allows the lender to mitigate some of the risk that those fluctuations create.

What specific documents do you need?

As with all applicants, you should expect to provide proof of address and ID. The documents required as proof of a stable income over the past two to three years will vary, depending on your Self-Employment type:

Limited Company Director

Under most circumstances your personal income and dividend payments will be considered as income, although a small number of lenders will also consider your retained profits alongside them. We can help you to find the lender that has a criteria that most closely matches your circumstances.


If you’re a part business owner your share of ownership will need to exceed 25% in order for the income derived to be used in support of your mortgage application.

Where you own 25% or above, lenders use your share of the net profits in the loan calculation.

Documents required for both Limited Company Directors and Partners are:

  • Certified and finalised business accounts for the requested duration
  • Tax Calculations and Tax Year Overview from HMRC covering the same period
  • Business bank statements
  • Some lenders also request future business plans or income projections

Sole Traders and Freelance workers

If you are a Sole Trader or Freelancer you will need to provide proof of personal income for the past two to three years. The documents that will be used to determine your loan affordability are:

  • Certified accounts
  • Tax Calculations and Tax Year Overview from HMRC


It can be a bit more difficult to prove a stable income as a contractor and lenders may need extra evidence that you have ongoing offers of work, however, there are specialist lenders that we can refer you to who are more sympathetic to contractors.

Some will treat your income as a Sole Trader and others will use your day-rate, if you have one, where your annual income will be considered to be an annualised version of your day-rate. To evidence your income you will need:

  • Two to three years of accounts and Tax Calculations and Tax Year Overview from HMRC for the same period
  • Proof of day-rate if applicable
  • Future guarantee of ongoing contract

Speak To An Expert

We’re able to tap into our local knowledge to guide you through your house purchase in your chosen area.

How do you improve your chances of being accepted by a lender?

Mortgage preparation can be key in securing a Self-Employed mortgage and completing the following steps before applying for a mortgage will improve your chances of acceptance:

Improve Credit Score

  • Make sure you appear on the electoral roll for your current address
  • Repay any existing debt
  • Pay utility bills and credit cards on time and in full, where possible
  • Minimise the use of existing credit agreements to within 50% of their limit
  • Refrain from applying for additional credit


The minimum deposit requirement for a Standard Residential Mortgage will be around 10%, whereas you can reduce that to 5% by using a home ownership scheme. Although there is no requirement to do so, offering more than the minimum deposit will strengthen a mortgage application.

Financial Preparation

As a Self-Employed applicant you are in the advantageous position to have an element of influence over your income. This allows you to better financially prepare for a mortgage application by looking into lender criterias ahead of your application, then tailoring your income, for example, by drawing down more dividends, as a business owner.

How can a Mortgage Broker help you with your documents if you are Self-Employed?

Here at The Mortgage Centre, we can help Self-Employed mortgage applicants to prepare in advance of their mortgage application, to ensure that they meet the criteria for those lenders offering the most competitive deals.

Our in-depth knowledge of both high street and specialist lender criteria means that we can ensure you only approach those lenders whose criteria you closely match, preventing the time and frustration of failed applications.


Why Choose Us?

Why Choose Us?


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