Self-employed and think you can’t get a mortgage? It’s time to challenge that assumption

Self-employed and think you can’t get a mortgage? It’s time to challenge that assumption

One of the most common things we hear from new clients is:

“I’m self-employed, so I’ve always assumed getting a mortgage would be really difficult, or impossible without a huge deposit.”

In reality, many self-employed people can get a mortgage, including first-time buyers. The challenge is that misinformation and outdated assumptions often stop people from exploring their options in the first place.

Let’s clear up some of the most common myths.

Myth one, you need at least a 25% deposit

This is one of the biggest misconceptions. While some lenders may ask for a larger deposit, many will consider self-employed applicants with the same deposit requirements as employed borrowers.

Depending on your circumstances, deposit options can be as low as 5% or 10%. Factors such as credit history, affordability and lender choice play a big role, which is why advice is so important.

Assuming you need a large deposit can delay buying a home unnecessarily.

Myth two, lenders don’t like self-employed applicants

Lenders are not anti self-employed, they simply assess income differently.

Instead of payslips and a P60, lenders will usually look at:

SA302s and tax year overviews,

two or more years of accounts, or company accounts, salary and dividends for limited company directors.

Some lenders will average income over a number of years, while others may use the most recent year if income is increasing. A small number will even consider one year’s figures in the right circumstances.

Knowing which lender fits your income profile can make a significant difference to what you can borrow.

Myth three, fluctuating income means no mortgage

Many self-employed people have income that goes up and down from year to year. This does not automatically rule you out.

Lenders want to see that your income is sustainable and that your business is viable. They understand that self-employment rarely looks neat or predictable.

A broker’s role is to present your income clearly and match it with lenders who understand your type of work.

Myth four, being a first-time buyer makes it harder

Being self-employed and a first-time buyer can feel like a double barrier, but it doesn’t need to be.

If one applicant is employed and the other is self-employed, lenders will assess both incomes together. In many cases, this actually strengthens the application.

The key factors remain affordability, credit profile and choosing the right lender, not employment status alone.

Planning ahead makes a big difference!

Speaking to a broker early allows you to understand what lenders are likely to look for and how best to prepare.

Early advice can help you:

Understand how much you may be able to borrow,

See what deposit is realistically required

Identify anything that could improve affordability or creditworthiness, and

Plan the timing of your application more effectively.

Even if you are not quite ready to apply, having a clear plan is far better than making assumptions.

Don’t rule yourself out before you start

The biggest myth of all is that self-employed people can’t get mortgages. Every year, many self-employed clients successfully buy their first home, move house or remortgage with the right advice.

If you are self-employed and unsure where you stand, a simple conversation could give you clarity and confidence about your next steps.

Your home may be repossessed if you do not keep up repayments on your mortgage. The information contained within was correct at time of publication but is subject to change (published 16 February 2026).