Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
Contractor mortgages
Yes, freelancers can get a mortgage. Lenders assess your income through accounts and tax calculations rather than payslips, and specialist lenders can accept as little as one year's trading history.
Yes. Freelancers can access the same mortgage products as employed applicants - there's no separate mortgage product built only for freelancers. The difference is how lenders assess your income, since you don't have payslips to prove your earnings.
Your borrowing amount is typically calculated the same way as for employed applicants - a multiple of your assessed income - so getting matched with a lender whose calculation method suits your situation matters more than anything else.
Getting a freelancer mortgage can feel daunting when you don't have payslips or a steady salary to show a lender. Standard mortgage applications are built around employed applicants with payslips and P60s, and freelancers don't fit that template.
As freelancers are considered self-employed by lenders, they're often viewed as higher risk than employed applicants. A strong application, backed by consistent income patterns and a good credit history, is essential to overcome this.
When you're employed, proving your income is straightforward - you hand over a few months of payslips. As a freelancer, your income picture is more complex, and lenders want to see evidence of a steady, reliable income before they'll lend against it.
Most mainstream lenders take an average of your last 2-3 years' net profit. That said, if your most recent year shows lower earnings, many lenders will use that lower figure, even if your overall trend is upward. This catches out many freelancers who had one difficult year.
Why mainstream lenders sometimes decline freelancers:
Employed applicants provide payslips. As a freelancer, you'll typically need to provide two to three years of accounts, tax calculations, and bank statements to demonstrate income stability.
Different lenders have different requirements. Some want two years of accounts, others three. Some accept SA302s alone, others insist on accountant-prepared figures. Knowing which lender suits your documentation is half the battle.
Most mainstream lenders want to see at least two years of freelance trading history before they'll lend. Some specialist lenders and building societies will consider applications with just one year's accounts, particularly if you have:
If your most recent year was weaker than the two before it, don't assume that rules you out. Some lenders will use your average over three years instead of your latest figure - it's about matching you with the right one for your situation.
Freelancers can access the same mortgage products as employed applicants, provided they meet the lending criteria set by mortgage providers. There's no separate freelancer mortgage product - the difference is in how lenders assess your application.
The income figure a lender uses determines how much you can borrow, so the calculation method matters. Most lenders review your net income and the consistency of your income stream, typically looking at the last 2-3 years, and may also consider future earnings if you can provide evidence of upcoming or long-term contracts.
Method 1: Average of 2-3 years' net profit
Most mainstream lenders use this approach, taking your net profit after business expenses from your last 2-3 years and averaging it.
Example: Year 1 net profit £38,000, Year 2 £42,000, Year 3 £45,000 - average £41,667. At a 4.5x income multiple, that gives maximum borrowing of around £187,500.
Method 2: Latest year's figures only
Some lenders use just your most recent year's earnings. This benefits freelancers with growing incomes but can work against you if you had a recent dip.
Method 3: Day rate annualisation (for contractors)
If you work on a day rate basis, some lenders will annualise your rate to create an income figure. For example, a day rate of £300 over 220 working days gives an annual income figure of £66,000.
Someone with steadily growing income tends to benefit from a latest-year-only lender. Someone with one poor year tends to benefit from a lender that uses a 3-year average. Getting matched with the right one for your situation is what a specialist advisor can help with.
How you've structured your freelance business affects your mortgage application.
Sole traders:
Limited company directors:
Neither structure is inherently better for mortgage purposes - it depends on the lender and your specific figures. What matters is matching with a lender whose calculation method works for your situation.
Freelancers can typically borrow up to 4.5 times their assessed income, the same as employed applicants. Some specialist lenders offer up to 5x or more for certain professions, though your individual circumstances - income stability, employment history, and business structure - will affect how much you can borrow.
Your actual maximum will depend on an affordability assessment that considers your outgoings, existing debts, and dependants. Speak to an advisor to get a figure based on your specific circumstances.
Freelancer mortgages
Speak to an advisor who understands freelance income and can match you with lenders whose calculation method suits your situation.
Getting your paperwork right matters. Missing or incorrect documents are a common reason for delays and declines, so it's worth gathering everything before you apply.
Most lenders will want two to three years of accounts showing your net income as a sole trader to assess your financial stability and eligibility.
For limited company directors, lenders will typically want evidence of dividend payments alongside net income, usually reviewing the last 2-3 years to determine eligibility.
These aren't always required, but they can help, especially for borderline cases:
Make sure your accountant-prepared figures match your SA302 exactly. Even small discrepancies between the two can trigger extra questions from an underwriter and slow your application down.
Documentation
Avoid these
Outdated SA302s
Your SA302 should reflect your most recently filed tax return, not a previous year's figure.
Accounts that don't match tax returns
If accountant-prepared accounts show different figures from your SA302, lenders will question the discrepancy.
Mixed personal and business banking
When transactions run through the same account, it's harder for lenders to verify your business income. Keep them separate.
Not providing enough evidence
Lenders often want proof of income beyond the basics, such as invoices, contracts, or dividend statements. Missing documents can delay or harm your application.
Missing or outdated credit report
An up-to-date credit report is essential for lenders to assess your creditworthiness, so check it before you apply.
One of the biggest freelancer concerns is whether they'll pay more for their mortgage. Freelancers can access the same mortgage products as employed applicants, provided they meet the lender's criteria on income verification, credit history, and deposit size.
Not automatically. Freelancers can access the same mortgage products at the same rates as employed applicants, provided they meet the lender's criteria. What determines your rate is:
That said, freelancers sometimes end up with less competitive rates, either because fewer lenders accept their application, which reduces competition, or because they need a specialist lender due to limited trading history. Speak to an advisor for current rates, since these change regularly and depend on your circumstances.
Freelancers need the same minimum deposits as anyone else. But there are practical considerations at each level:
Saving a bigger deposit can improve your chances of approval, since lenders may see you as lower risk and widen the range of options available to you. Many self-employed buyers put down a bigger deposit than employed buyers for exactly this reason.
Beyond the deposit, plan for these mortgage-related costs:
Some lenders offer fee-free products or let you add the fee to your loan. An advisor can help you compare the total cost of different options, not just the headline rate.
Not all mortgage providers have the same appetite for freelance applications. Understanding how different lenders assess self-employed applicants helps you target the ones more likely to say yes, and protects your credit file from unnecessary hard searches.
Different lenders suit different freelancer situations. An advisor with access to a wide range of lenders can match you with the ones whose criteria fit your circumstances, whether that's a high street bank, a building society, or a specialist lender. When you speak to an advisor, they can also identify niche lenders you wouldn't find by applying directly.
Lender types
These anonymised examples show how different freelancer situations can lead to a successful mortgage application. Figures are illustrative and won't reflect your own outcome, but they show how lender matching makes a difference.
Background: Emma, 34, has been a freelance graphic designer for 5 years. Her average net profit was £52,000 over 3 years, with her latest year at £58,000 and growing. She'd saved a £45,000 deposit (15%) to buy a £300,000 property.
Challenge: Emma approached her bank directly and was offered less borrowing than expected, because they averaged her 3 years' income and applied a conservative multiplier.
Solution: An advisor matched Emma with a lender who used her latest year's income instead, applying a 4.5x multiplier to the higher figure.
Outcome: Emma's borrowing was approved at £261,000, with the application taking around 6 weeks from start to completion.
Background: James, 29, had been a freelance web developer for 14 months, with his first full year's net profit at £48,000. He'd previously worked as an employed developer for 6 years. He had a £30,000 deposit (10%) to buy a £280,000 flat.
Challenge: Most mainstream lenders wanted 2 years of accounts. James had already been declined by two lenders before seeking specialist help.
Solution: An advisor found a specialist lender who accepted 1 year's accounts where the applicant had prior industry experience. James's 6 years as an employed developer showed he wasn't new to the industry.
Outcome: James's borrowing was approved at £250,000, with the application taking around 8 weeks from start to completion.
Background: Sarah, 41, runs a marketing consultancy through a limited company, taking a £12,000 salary for tax efficiency plus £45,000 in dividends, with £25,000 retained in the company. She had an £80,000 deposit (20%) to buy a £400,000 house.
Challenge: Sarah's salary plus dividends of £57,000 would only support borrowing of around £256,000 at a 4.5x multiple, but she needed £320,000 for her chosen property.
Solution: An advisor found a lender who considered salary, dividends, and a portion of retained profits, increasing her assessed income to £72,000.
Outcome: Sarah's borrowing was approved at £324,000, with the application taking around 7 weeks from start to completion.
Beyond standard mortgage requirements, freelancers often have circumstances that need a bit more explanation to a lender.
If you work through a limited company and provide services to clients, IR35 (off-payroll working rules) may affect you. These rules determine whether you're taxed as self-employed or effectively as an employee, and that distinction affects how lenders assess your income.
If you're a contractor working inside IR35, some lenders will use your day rate to calculate income, which can work in your favour. Discuss your specific IR35 situation with your advisor.
Many freelancers have income from multiple sources - different clients, platforms, or a mix of freelance and part-time employment. Lenders can consider multiple income streams, but you'll need to evidence each one separately. Keeping organised records for each stream makes this easier.
If you have PAYE employment alongside freelancing, lenders will typically assess both incomes, using different criteria for each. This can work in your favour if both sources are stable.
Freelance work often has natural busy periods and quieter times, so your income fluctuates. Lenders understand this, but you'll need to show a steady, reliable pattern to reassure them you can manage regular mortgage payments.
Tips for presenting variable income positively:
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Timing
After filing your latest tax return
So you have the most recent SA302 available to give to a lender.
After a strong trading year
Especially useful if you're applying to a lender that uses your latest year's figures only.
Once you have enough trading history
Two years is ideal, though one year is possible with the right lender and a larger deposit.
When your pipeline is healthy
Being able to show forward contracts or confirmed bookings helps reassure a lender about future income.
These organisations can help with the practical side of freelance finances and tax.
Professional bodies and associations:
HMRC and tax guidance:
Getting your SA302:
Mortgage applications as a freelancer aren't always straightforward. It helps to work with advisors who know which lenders accept your type of income, how to present your application, and how to make the most of your borrowing potential.
Our network includes mortgage advisors who specialise in self-employed and freelance applications.
What an advisor can do for you:
Initial eligibility checks don't affect your credit score, so there's no downside to finding out what's available to you. You can get started by sharing a few basic details about your freelance income and property goals online, or by requesting a callback to speak to someone directly.
If you're struggling with existing mortgage repayments, or you're unsure whether now is the right time to apply, free and impartial guidance is available from MoneyHelper on 0800 138 7777.
Common questions
Yes, though your options are more limited. Some specialist lenders and building societies accept 1 year's accounts, particularly if you have a larger deposit (15%+), previous experience in your industry, or strong financial performance in that first year. An advisor can identify which lenders will consider your application.
Not necessarily. Freelancers can access the same mortgage products and rate options as employed applicants, provided they meet the lender's criteria on deposit size, credit history, and income verification. If you need a specialist lender because of limited trading history, the rate might be marginally higher. Speak to an advisor for current rates.
Most lenders assess your self-employed income by averaging your net income over the past 2-3 years, using figures from your SA302 forms, tax returns, and bank statements. Some lenders use only your latest year's net income. For limited company directors, income typically includes salary plus dividends, and some lenders also consider retained profits. The calculation method varies by lender, so getting matched with the right one for your situation matters.
For sole traders, certified accounts help but aren't always essential - many lenders accept SA302s from HMRC. For limited company directors, certified company accounts are typically required. Having an accountant prepare your figures adds credibility to your application.
Yes, 95% LTV mortgages are available to freelancers, but options are more limited, especially with under 2 years' trading history. A larger deposit (10-15%+) opens up more lenders and better rate access. If 5% is what you have, an advisor can find lenders who'll consider your application.
It depends on your situation. Two years of trading history opens up significantly more lenders and typically better rates. But if you have a strong first year, relevant prior experience, and a decent deposit, you may not need to wait. An advisor can assess whether applying now makes sense or waiting would improve your options.
The multiplier (typically 4-4.5x income) is the same as for employed applicants. The difference is how your income is calculated. Some lenders are more generous with their calculation methods, so getting matched with the right lender can maximise your borrowing amount.
Yes, and in some ways it's simpler. Buy-to-let mortgages are primarily assessed on rental income rather than personal income, so your freelance status matters less. You'll still need to demonstrate a minimum personal income and pass affordability tests.
Once you have your mortgage, lenders don't routinely check your ongoing income unless you want to remortgage. You just need to keep making your monthly payments. It's worth planning your payments based on realistic income expectations, not your best possible year.
For freelancers, working with a mortgage broker is usually more efficient than going direct. Each lender has different criteria for freelance income, and a broker has access to a wide range of lenders, including those who specialise in self-employed and contractor mortgages. This can help you avoid unnecessary declines that could affect your credit score.
Typically, the whole process takes 4-8 weeks from application to completion, similar to employed applicants. Having your documentation ready - SA302s, accounts, bank statements - speeds things up. Complex cases or documentation issues can extend this.
A larger deposit improves your chances significantly. With a 20%+ deposit and strong financial performance, some lenders will consider applications with just 1 year's trading history. Prior experience in your industry can also help demonstrate you're not a risky proposition.
The same as any mortgage applicant. Lenders will review your credit report as part of the application process to assess your creditworthiness. There's no different credit threshold for freelancers, though if your credit needs work, you may face more challenges or be offered less favourable terms. Checking your credit report for errors while building your trading history will help your application.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
Mortgages
Compare mortgage rates from a wide range of lenders. Our expert advisors are here to help you find the right deal.
