Before You Continue…

Our website uses cookies. By continuing to browse the site, you are agreeing to our Privacy Policy.

OK - continue
logo
Search for mortgage help
CALL US:  023 8098 0304
Mobile menu bars Close mobile menu
mortgage calculator mortgage calculator
request a call back Request a Callback
email us info@themortgagehut.net
call for mortgage advice chat online now
Search for mortgage help

Specialist Mortgage Help

  • First Time Buyers
  • House Mover Mortgages
  • Bad Credit Mortgages
  • Remortgaging
  • Equity Release
  • Self Employed Mortgages
  • Buy to Let Mortgages
  • Expat Mortgages
  • Commercial Mortgages

Useful Links

  • Home
  • Contact us
  • Mortgages
  • Mortgage Insurances
  • About Us
  • Customer Reviews
  • Refer a Friend Scheme
  • Expert Articles
  • News
  • Sitemap
  • New Build Mortgages
  • CIS Mortgages Explained

Privacy Settings

  • Privacy Policy

How to get a self-employed mortgage without business accounts

  1. Home
  2. Expert Articles
  3. Self Employed Mortgages
Being self-employed can often be seen as a burden when applying for a mortgage, but there are plenty of specialist lenders that focus solely on those who own a business. 

When your business first starts out, it’s likely that you won’t have any accounts or books that show your true income – which is what’s needed when you are applying for a mortgage.  Whilst there are companies out there that will offer a business loan specifically for mortgages, they can be expensive and often require heavy collateral such as your property.  As a result, it’s important to know that there are specialist lenders that will look at mortgage applications, even if you’re self-employed with no accounts.   

However, if you’re yet to complete a tax return for your first year of trading then it’s unlikely that a lender will accept your mortgage application.  Lenders have to prove that they have lent responsibly and base their application decisions on an applicant’s proof of affordability. Without your first year’s tax return, they don’t have this ability which means they won’t lend to you – even if your first six months was a huge success.  

Agreement in Principle (AIP)

Despite this, if you are somewhat close to the end of your first trading year (around 10 months), you could look at getting a mortgage Agreement in Principle (AIP).  An AIP lasts for three months and ensures that you know, in advance of putting an offer on a property, what you can afford to spend on one.  The figure that a mortgage adviser would use on the AIP would be an anticipated earning as a net profit/salary and dividend, as it is still too early to be completely accurate.  

Why is it so difficult to get a self-employed mortgage? 

They are usually more difficult to get because of the lenders’ difficulties in establishing how much you earn, which means that they can consider you a risk of not being able to pay back what you borrow.  If you’ve been trading for more than three years, it’s likely that you’ll just be considered by lenders in the same way a standard mortgage would.  

Can’t I just tell them what I’m going to be earning in a year’s time?  

 No. Self-cert mortgages, where you could tell a bank what you were earning without proving it, are a thing of the past since the recession and Mortgage Market Review. Gone are the days of pure self-cert mortgages, where self-employed borrowers could tell a bank what they were earning without proof, and borrow pretty much what they wanted. Since the recession, lenders have been forced to tighten their approach and request proof in almost all regulated borrowing applications. This means that the self-employed market has been hugely restricted, and with the number of start-ups increasing, there are more and more that are looking for self-employed mortgages. 

What’s the most I can borrow if I’ve only been self-employed for a year? 

It’s usually around the same as an employed applicant, so between 4-5x your income, dependent on the lender and your credit score. There is also a chance that a lender will look at your income projection, based on accounts that are yet to be drawn up. For example, if you have been trading for 20 months, you should have one full year’s worth of accounts plus nine months of the 2nd year. 

For advice on getting a self-employed mortgage, speak to one of our expert advisers who will be able to help you with the next steps. 
Managing Director Nicola Schutrups
Self Employed Mortgages Expert Article by
Nicola Schutrups (Managing Director)
The Mortgage Hut

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Related Self Employed Mortgages Information

  • SEISS explained: How will receiving a grant affect your mortgage application?
  • 5 X Salary Mortgage Lenders
  • Mortgages for Doctors
  • Get a Mortgage with your business Retained Profits
  • Mortgage Advice for Taxi Drivers – A Route to Success
  • How to Choose a Contract Mortgage Broker
  • Self-Employed - challenges & top tips
  • Mortgages for LTD Company Directors - Specialist Advice

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Follow us on social media for updates

  • Like us on Facebook
  • Follow us on Twitter
  • See us on instagram
  • Watch us on YouTube

Contact The Mortgage Hut

Head office address of The Mortgage Hut
SOUTHAMPTON (HQ)
14 College Place
Southampton
Hampshire
SO15 2FE
Head office phone The Mortgage Hut
023 8098 0304
Head office email The Mortgage Hut
info@themortgagehut.net
Contact Us

The Mortgage Hut Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

The Mortgage Hut Limited. Registered Office: 14 College Place, Southampton SO15 2FE Registered in England Number: 07629941

Contact Us

Important Information

  • The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
  • Some products are not regulated by the Financial Conduct Authority.
  • Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
  • There may be a fee for mortgage advice.
  • The actual amount will depend upon your circumstances.
  • The fee is up to 1% and a typical fee is £748.

Data Protection & Privacy

You voluntarily choose to provide personal details to us via this website.

Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 1998.

You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

When you use our website, we access your device/computer to set cookies and collect data.

We do this so it works, is secure and delivers the best browsing experience.

We also collect data to study how people use our site and help us improve our services and tailor our marketing.

For more information see our Privacy Policy.

back icon
close icon

Specialist Mortgage Advice

Mortgage Advice

Mortgage Advice
Get Started
Mortgage Advice

Mortgage Advice

Remortgage Advice

Remortgage Advice
Get Started
Remortgage Advice

Remortgage Advice

Buy to Let Mortgage

Buy to Let Mortgage
Get Started
Buy to Let Mortgage

Buy to Let Mortgage

Is the mortgage for your home or a business venture?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Are you buying or remortgaging?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Have you found a property yet?

Yes Button Yes Hover Button
No Button No Hover Button

Is the property house or a flat?

House Button House Hover Button
Flat Button Flat Hover Button

What is the property’s estimated value?

£

Deposit amount or equity?

£

Have you got any adverse credit?

Yes Button Yes Hover Button
No Button No Hover Button

What types of adverse credit?

Next Button Grey Next Button Blue Next Button White

What is you combined annual income (before tax)?

£

Sourcing Mortgages…

Nicola Arbon

“There's a reason why over 500 clients rate us as Excellent.”
Nicola Arbon, Managing Director and Mortgage Guru

Green Tick

Congratulations, we've successfully found you multiple mortgage options.

Next Button Blue Next Button White

Please enter your name to send you the results

Please enter the best email to send you the results

What is the best number to reach you on?

What day & time best suits you?

Next Button Blue Next Button White

Thank you

logo

A member of The Mortgage Hut team will review your enquiry & we’ll be in touch to discuss in more detail & to advise on the options available to best suit your needs.

Head office phone The Mortgage Hut 023 8098 0304