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Self Employed Mortgages – How to Improve Your Chances

Mortgages for self employed applicants

Self Employed Mortgages – How to Improve Your Chances

Mortgage lending rules have tightened for everyone in recent years. For self employed applicants, understanding what lenders look for — and preparing in advance — can make a significant difference to the outcome.

Your home may be repossessed if you do not keep up repayments on your mortgage

Preparation matters more than employment status

Since the introduction of stricter affordability rules, lenders now look at the full financial picture — not just income alone. This applies equally to employed and self employed applicants.

The good news is that there are clear, practical steps you can take to strengthen your application before you apply.

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Control your spending

Lenders don’t just assess how much you earn — they also look closely at how you spend.

Most applications require recent bank statements, typically covering the last three months, to verify your regular outgoings and committed expenditure.

Everyday spending such as meals out or gym memberships is rarely an issue. What matters more are ongoing commitments like:

  • Credit card balances
  • Personal loans
  • Car finance or hire purchase agreements
  • Overdraft usage

Demonstrating that you have surplus income left at the end of each month helps show that mortgage repayments are sustainable alongside the normal costs of running a home.

Improve your credit profile

Your credit history plays a major role in mortgage decisions.

Reducing outstanding credit card balances, loans, and overdrafts can improve your credit profile and increase disposable income at the same time.

  • Avoid missed or late payments
  • Keep credit card balances well below their limits
  • Limit new credit applications before applying for a mortgage

Even small improvements can have a positive impact when lenders assess affordability and risk.

Save a larger deposit where possible

While it may not always feel fair, a larger deposit will almost always strengthen a mortgage application.

From a lender’s perspective, a higher deposit:

  • Reduces their overall risk
  • Improves loan-to-value ratios
  • Often unlocks better rates and product choice

It also demonstrates financial discipline and the ability to retain surplus income over time.

Prepare your paperwork early

Incomplete or poorly prepared documentation is one of the most common reasons for delays or declines in self employed applications.

Before applying, it helps to ensure:

  • Accounts or tax documents are up to date
  • Income figures are consistent and sustainable
  • Bank statements align with declared income

Taking time to prepare reduces stress and avoids last-minute issues during underwriting.

Use expert mortgage advice

Every lender assesses self employed income differently.

Applying to the wrong lender can lead to unnecessary delays or avoidable declines. An experienced mortgage broker can:

  • Assess your situation before any application is made
  • Identify lenders whose criteria best match your circumstances
  • Present your income in a way underwriters expect
  • Help you plan steps to improve eligibility if needed

Getting advice early often saves time, reduces risk, and improves the chances of success.