Buying a Home in the UK When You're Self-Employed: What You Need to Know

Buying a home in the UK can feel overwhelming, especially if you’re self-employed. But don’t worry—being your own boss doesn’t mean you can’t get a mortgage. In fact, with the right preparation and guidance, it's absolutely possible.

At Dream Casa, we help many self-employed individuals and contractors secure the keys to their dream homes every year. Here’s what you need to know if you're self-employed and planning to buy a property in the UK.

Who Counts as Self-Employed?

You’re considered self-employed if you:

• Run your own business as a sole trader

• Are a partner in a business partnership

• Own a limited company (even if you're the only director)

• Work as a freelancer or contractor

Even if you pay yourself a salary and dividends, mortgage lenders will often still treat you as self-employed.

What Do Lenders Look For?

When assessing your mortgage application, lenders will want to see:

• At least 1-2 years of accounts (some require 3 years)

• SA302s or tax calculations and tax year overviews from HMRC

• Business bank statements

• Proof of deposit

• Good credit history

  For limited company directors, lenders may assess:

• Salary and dividends

• Or net profit (depending on the lender)

Tips to Boost Your Chances

Keep Your Accounts Up to Date
Make sure your tax returns and accounts are filed on time and professionally presented.

1. Work with a Mortgage Broker
   An experienced broker (like us!) knows which lenders are most self-employed friendly and how to present your case.

2. Save a Strong Deposit
   A higher deposit (e.g. 10% or more) can open up better rates and more mortgage options.

3. Check Your Credit Score
   Make sure your credit report is clean. If needed, take time to improve it before applying.

4. Avoid Big Business Changes
   Try to avoid major shifts in your income or business structure before applying.

Common Challenges (and How We Help)

• Fluctuating income? We know how to present average earnings to make your case stronger.

• Newly self-employed? Some lenders accept just 1 year of accounts with a strong deposit.

• Multiple income streams? We'll help you document everything clearly for lenders.

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Frequently Asked Questions

• Can I get a mortgage with only one year of self-employment?
  Yes, but only with certain lenders. You may need a larger deposit and strong supporting documents.

• Do I need an accountant?
  It’s not required, but it definitely helps. Professionally prepared accounts add credibility.

• Can I use retained profits in my business?
  Some lenders will consider retained profits when assessing affordability. Others won’t. We’ll find the right fit for you.

Dream Casa: Helping the Self-Employed Get Home

At Dream Casa Mortgage Consultancy, we specialise in helping self-employed individuals and business owners navigate the mortgage process with clarity and confidence. We understand the extra paperwork, the nuances of business income, and how to present your case in the best light.

Ready to start your journey? Contact us today for expert advice tailored to self-employed buyers.

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