How to Find the Best Mortgage Lenders for the Self-Employed

Finding the right mortgage lenders who understand all the complexities involved with being self-employed can be a difficult, time consuming, task.

By following this guide you’ll be able to make a much more informed choice, giving your application the best chance of success.

How to choose the right lender if you’re self-employed

Ideally you’ll need to find a mortgage lender who specialises in providing loans for self-employed applicants, fully understands their needs and is best positioned to offer you a mortgage that fits in with the way you trade and exactly how you make your money.

Adopting a scattergun approach and applying to as many lenders as possible in search of the right one rarely, if ever, works out the way you want it to. It will take up far too much of your time, away from your business and could end up causing more harm than good, particularly to your credit record.

Using online search to find the best interest rates available from mortgage lenders is a good place to start but using the services of a broker will save you a lot of time and also ensure you have access to the whole market.

The table below gives you a snapshot of which lenders currently (May 2023) offer the best terms and interest rates for self-employed mortgages.

The rates quoted above were correct at the time of writing (May 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time. 

Which lenders best cater for self-employed borrowers?

There’s no one-size-fits-all answer here as the best lender for you might be a poor fit for another self-employed professional who trades in a totally different way.

Whilst all mortgage lenders work to the similar rules, they don’t all use the same eligibility criteria.

This means that one lender may look more favourably on your application than another, depending on what their criteria guidelines will allow.

The table below, looking at what certain lenders will consider as evidence of earnings, provides a great illustration of this…

So, for example, if you’re a company director and take a modest salary in order to retain more profits in your business, there’s really no point applying to NatWest or Santander but HSBC and Barclays would take these earnings into account.

This is definitely where having someone with the right experience by your side can give you a huge advantage, saving you so much time which can be spent looking after your business while your broker takes care of your mortgage application.

What are the benefits of specialist lenders if you’re self-employed?

Specialist lenders who cater specifically for self-employed people might be more likely to offer you a mortgage under niche circumstances, including…

• If you have less than two years’ accounts
• You want to borrow based on your most recent year of trading only
• You have declining profits
• You want to borrow based on retained profits
• You have bad credit

The take-home point to keep in mind about specialist lenders is that many of them are not banks and building societies you’re likely to have heard of, nor will you find them through a quick Google search.

Many of them are only approachable through a broker and reserve their best deals for borrowers who apply through a mortgage advisor.

Are there lenders who offer mortgages without any proof of income?

This hasn’t been possible since 2014 when the final self-cert mortgages were withdrawn from the UK market, but there are close alternatives to consider.

Self-certification mortgages may no longer be available but, thankfully, there are some specialist lenders who’ve stepped into this void and can provide assistance with the right experience and knowledge of dealing with a range of circumstances, such as:

If you’re unable to provide any proof of income, or if you think there may be other factors that could hamper your chances of being approved – don’t panic!

Just speak with your mortgage broker and explain the situation. They’ll then be able to search for a specialist lender with experience dealing with specific scenarios such as yours.

How a mortgage broker can find the best lender for you

If you’re self-employed, many lenders might look at your application but what you need is the right lender who offers the best chance of getting the mortgage you need.

This is where we can help.

We understand that every self-employed person has a different story to tell, with different income streams which don’t follow the straight line of a salaried employee.

By matching you with a broker who has the right skill-set and expertise, you’ll find the lender you need.

Call 0808 189 0463 or make an enquiry and we can arrange a free, no-obligation call with a mortgage broker with experience in assisting self-employed people today.