Being self-employed has many perks – freedom, flexibility, and control over your career. But when it comes to getting, things can feel a bit more complicated. Lenders tend to favour applicants with a regular salary, so proving your income and financial stability as a freelancer, contractor, or business owner can require a bit more effort.
That’s why choosing the right lender is so important. The lender you go with can make the difference between a smooth approval process and a string of rejections. If you’re self-employed and planning to buy a property, here’s a complete guide to help you find a lender who understands your unique situation.
- Understand What Lenders Are Looking For
Before diving into the search, it’s important to understand what lenders expect from self-employed applicants. Typically, lenders will want to see:
- At least two years of self-employed accounts
- Consistent or increasing income over that period
- A strong credit history
- A sizeable deposit (often 10–20%)
Some lenders may accept one year of accounts, but this is less common and usually comes with higher rates or stricter conditions.
- Choose a Lender That Specialises in Self-Employed
Not all lenders are created equal. While some traditional banks stick rigidly to salaried income criteria, others are far more flexible and experienced with self-employed borrowers. Specialist lenders or brokers often offer more tailored advice and can consider a broader range of income sources, such as:
- Limited company dividends and salary
- Sole trader profits
- Retained profits in a business
- Contractor day rates
Look for lenders that specifically state they work with self-employed applicants — this will save time and reduce the chance of frustration later.
- Work with a Broker
Finding the right lender on your own can be challenging. That’s where a good broker becomes invaluable. They understand the self-employed landscape and can match you with lenders that suit your circumstances.
Many brokers also have access to exclusive deals that aren’t available directly to the public. Better still, they can advise on what documents to prepare and how to present your income in the most favourable light.
If you’re searching for property in Nottinghamshire, the team at Whitegates Mansfield estate agents can recommend trusted brokers who specialise in helping self-employed clients get the best deals.
- Get Your Finances in Order Before Applying
Lenders are cautious by nature. As a self-employed applicant, it’s crucial to present yourself as a low-risk borrower. To do this, make sure your finances are in top shape before submitting your application. That includes:
- Having up-to-date and professionally prepared accounts
- Reducing outstanding debts
- Checking your credit score for errors
- Keeping business and personal accounts clearly separated
The more organised your financial records, the easier it is for a lender to assess your application.
Some lenders may offer bespoke solutions for business owners or those with fluctuating income, such as flexible repayments or interest-only terms.
It’s worth discussing your long-term plans with your adviser to find a product that aligns with your financial goals and business growth.
- Don’t Focus Solely on Interest Rates
While a low interest rate is important, it shouldn’t be the only factor you consider when choosing lender. Look beyond the headline figures and evaluate:
- Lender fees and charges
- Flexibility (e.g., overpayments or early repayment terms)
- Customer service and accessibility
- How quickly the lender processes self-employed applications
A lender that offers personal support and clear communication can be worth their weight in gold during what can be a stressful process.
- Be Patient and Prepared for Questions
Even with the right lender, the process for self-employed individuals may take longer. Be prepared for additional questions or requests for clarification. Don’t take this personally — it’s just part of the due diligence.
Having a broker or an estate agent who understands the process can help things run more smoothly. Whitegates Mansfield estate agents work closely with buyers in the local area and know the steps involved when you’re self-employed. Their experience and local knowledge can ease the pressure and help you navigate any bumps in the road.
Final Thoughts
Securing a when you’re self-employed isn’t impossible — it just requires a bit more preparation and the right support. By choosing a lender that understands your situation, keeping your financial records in order, and working with experienced professionals, you’ll put yourself in a strong position to get the keys to your new home.
If you’re ready to take that step, reach out to the team at Whitegates Mansfield estate agents. Their friendly experts are on hand to guide you through the home buying process and connect you with professionals who truly understand self-employment. With the right people on your side, homeownership is absolutely within reach.
