Getting A Mortgage When You’re Self Employed

Self-employment and freelancing are ever-growing industries and you shouldn’t have to worry about getting a mortgage if you are self-employed.

By making sure you’re as prepared as possible for your mortgage application and any queries your lender may have helps make the house buying process as smooth and easy as possible.

This guide provides you with a few ideas for what you can do to create your strongest mortgage application.


Have savings to fall back on

Lenders will want to be sure that even if your turnover hits a speedbump, you’ll be able to make your monthly repayments. A good way to help demonstrate this is by having a comfortable amount of savings, suggesting you’d still be able to make mortgage repayments with your savings until more work comes your way.


Use a repayment calculator

Before applying for your mortgage, you can use our repayment calculator to make sure that the mortgage loan you’re considering is realistic based on your income and outgoings.

We have a mortgage repayment calculator that you can complete by answering a few easy questions.


Prepare your documentation

In order to prove your income, your mortgage lender will ask to see a collection of documents. Prepare these in advance so they’re ready to go when your lender asks for them.

The documentation your lender may ask for includes:

  • SA302
    This form shows your income for the year and the tax you owe based on the Self Assessment you submitted to HMRC.
  • Bank statements
    This will help illustrate your incomings and outgoings to your lender. You should also have a bank statement showing the value of your deposit savings. The number of month’s bank statements required will vary per lender.
  • A list of your expenses
    Your lender will need to know what regular monthly outgoings you have in order to assess your affordability and therefore you will need to know all your outgoings as part of the application process - this includes anything from pension contributions to insurance policies and monthly commitments such as mobile phone and gym membership.


Consider hiring an accountant

Before approving your mortgage, your lender will want to see your accounts. We only require one years’ accounts for a self-employed mortgage application, however that may vary for other lenders.

Lenders often require your accounts to be prepared by a qualified accountant. Either way, make sure your accounts are fully up to date before submitting your application as lenders won’t want to see out-of-date figures.


Get a self-employed mortgage

We want to make getting a mortgage as easy as possible for you. That’s why we’ve created our self-employed mortgages, specifically designed for people who are self-employed and have been trading for 2 years or less.


Find out more about our mortgages today by calling into your local Newcastle Building Society branch or speak to one of our mortgage advisors.