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Halifax Self-Employed Mortgage – How to Qualify & Get Approved

For many self-employed people, the thought of applying for a mortgage is stressful. Most lenders still prefer traditional PAYE applicants with simple payslips, which makes contractors, freelancers, and company directors feel like they’re at a disadvantage.

The good news? Halifax is one of the most self-employed-friendly banks in the UK. With flexible criteria and options for sole traders, contractors, and limited company directors, Halifax often gives the self-employed the same access to competitive rates as employed applicants.

At Mortgage Knight, we specialise in packaging self-employed mortgage applications for Halifax. Done right, this can mean faster approval, higher borrowing, and access to Halifax’s best rates.

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Halifax 1 Year Self Employed Mortgage
Why Halifax Works for the Self-Employed
  • Halifax stands out because they understand modern working patterns:
  • Accepts contractors from day one of their first contract
  • Considers just 1 year of accounts in some cases
  • Offers mortgages up to 95% LTV
  • Works with sole traders, partnerships, limited company directors, and freelancers
How Halifax Assesses Income
  • Halifax has different approaches depending on how you work:
  • Sole traders – income assessed on your net profit
  • Limited company directors – usually based on salary + dividends, sometimes considering retained profit
  • Contractors – income calculated as day rate × 5 × 46 weeks (one of the most generous formulas in the market)
  • Partnerships – your share of net profit is used for affordability
What Halifax Will Ask For
  • When applying, be prepared to show:
  • SA302s/Tax Year Overviews (1–2 years, depending on profile)
  • Company accounts if you’re a director
  • Current contract if you’re a contractor
  • 3–6 months’ bank statements
  • ID and proof of address

Case Studies

Case Study 1 – Sarah, Freelance Graphic Designer

Sarah had only one full year of trading history. Most lenders rejected her for not having 2 years’ accounts. Halifax reviewed her SA302, bank statements, and recent growth. With Mortgage Knight’s help, she was approved at 90% LTV.

Case Study 2 – Raj, Day-Rate IT Contractor

Raj switched to contracting after years of full-time work. His bank told him to come back with 2 years’ accounts. Halifax used his current contract at £450/day, multiplied by 5 × 46 weeks, giving him a far higher borrowing limit. He secured a competitive fixed rate with just 10% deposit.

Case Study 3 – Louise, Company Director Retaining Profits

Louise only paid herself a modest salary and dividends, but her company accounts showed strong retained profits. Halifax considered both her personal income and her business accounts. Result: she bought the family home she wanted without having to restructure her pay.

Frequently Asked Questions

Yes, Halifax is one of the few lenders that can accept just one year of accounts, depending on your overall profile.

Yes — Halifax is well-known for lending to contractors from the very start of their first contract.

Not with Halifax. They often offer the same competitive rates as employed borrowers.

Halifax can lend up to 95% LTV, meaning just a 5% deposit may be enough.

Flexibility — whether you’re a sole trader, limited company director, or contractor, Halifax has lending options tailored to your circumstances.

Looking for a Halifax Self-Employed Mortgage?

At Mortgage Knight, we know exactly how to package applications for Halifax. Whether you’ve been trading for just one year, working on contracts, or running a limited company, we can help secure the right deal for you.

Contact us today