A self-employed mortgage isn't a distinct product type, but a way of describing mortgage applications from people who don't receive a fixed salary from an employer. This includes sole traders, contractors, freelancers, business partners, and limited company directors.
Because income can vary year to year, lenders typically ask for additional evidence to assess affordability, such as tax returns, accounts, or business bank statements, rather than relying on pay slips alone. Many mainstream lenders now cater well to self-employed applicants, alongside specialist lenders who focus on more complex or irregular income situations.
| Cost/ Consideration | What is it? | What to Consider |
|---|---|---|
| Deposit | The upfront amount you contribute towards the property purchase. | Some lenders may ask for a larger deposit if your income history is limited or variable. |
| Mortgage arrangement fee | A fee charged by some lenders to set up the mortgage. | Check whether it's paid upfront or added to the loan balance. |
| Income evidence | Documents used to verify your earnings, such as SA302s, tax year overviews or accountant's certificates. | Requirements vary by lender. Some accept one year's accounts, while others ask for two or three. |
| Valuation fees | A lender assessment of the property’s value. | Some mortgage products include a free valuation as part of the deal. |
| Legal fees | Costs for handling the legal side of buying or remortgaging. | These may include conveyancing, property searches and other legal work. |
| Specialist lender fees | Some specialist lenders charge higher fees in exchange for more flexible income assessment. | Weigh the cost of flexibility against a mainstream deal if you meet standard criteria. |
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is for general information purposes only and should not be considered financial, legal or mortgage advice. It does not take into account your individual circumstances, and you should seek independent professional advice before making any financial decisions.
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