How to Get a Mortgage When You’re Self-Employed or Freelance

If you’re self-employed or freelance, you’ve probably heard that getting a mortgage is “difficult.”

In reality, it’s not about your job title — it’s about proving stable, reliable income.

At Mortgage Knight, we help everyone from contractors and sole traders to company directors and locums find lenders that understand how they’re paid.

Here’s what you need to know to turn your income into mortgage approval.

What Lenders Look for

Self-employed applicants are assessed in the same way as everyone else — affordability, credit history, and stability.

The difference is how income is verified.

Lenders usually ask for:

SA302s or tax calculations (last 1–3 years)
Business accounts prepared by an accountant
Bank statements (personal and business)
For contractors: contract details or day rate evidence

The stronger and more consistent your records, the easier it is to qualify.

How Long You Need to Be Self-Employed

You don’t always need three full years of accounts.

Many lenders are now flexible:

Some accept just 1 year of trading (e.g. Halifax, NatWest, and Clydesdale).
Contractors may use current contract income instead of full accounts.
Locums or part-time self-employed workers can average their last 3 months of income.

Mortgage Knight helps match your working pattern with the right lender criteria.

Income Types Lenders Will Consider

Depending on your setup, lenders can consider:

Salary + dividends (for limited company directors)
Net profit (for sole traders)
Day rate × working weeks (for contractors)
Recent locum income (for NHS or agency professionals)
Foreign currency contracts (for overseas-paid UK workers)

If you have multiple income streams, our advisers can help you present them in a way that maximises affordability.

Common Challenges — and How to Overcome Them

Irregular income

→ Use longer averages or contracts to prove stability.

High business expenses reducing profit

→ Some lenders consider gross income or director salary + dividends instead.

Limited accounts

→ Certain lenders (like NatWest or Kensington) accept 1-year figures if recent trading is strong.

Big jumps in earnings

→ We can direct you to lenders who take the most recent year if it shows sustainable growth.

The Role of a Specialist Broker

Most high-street banks apply rigid rules for the self-employed.

Mortgage Knight has access to specialist lenders that assess cases manually — ideal for freelancers, contractors, or small business owners.

We:

Understand complex income types
Communicate directly with underwriters
Present your documents the right way — first time
This reduces the chance of rejection and often results in better rates.

Case Studies

Case Study 1: Tom – Freelance IT Contractor

Tom’s income varied each month. Mortgage Knight used his 12-month contract average to secure a mortgage with NatWest — no company accounts required.

Case Study 2: Lisa – Locum Pharmacist

Lisa worked variable shifts across several NHS trusts. We averaged her last 3 months’ invoices and placed her with Clydesdale, who accepted locum income in full.

Case Study 3: Aamir – Limited Company Director

Aamir only took a small salary but had strong retained profits. Mortgage Knight found a lender willing to include retained earnings in affordability — boosting his borrowing power.