Taking out a mortgage is a significant financial commitment, and it is usually the largest loan people will take on in their lifetime.

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What you need to know.
If you're self-employed or working as a contractor, getting a mortgage can feel more complicated than it might be for someone in full-time PAYE employment. While being your own boss has its advantages, proving your income to a mortgage lender isn’t always straightforward, however, that doesn’t mean it’s impossible.

At Endemeo, we specialise in helping self-employed individuals, freelancers, sole traders, limited company directors, and contractors apply for mortgages that suit their needs. We’ll highlight the possible challenges you could face and, importantly, how to overcome them with the right support.

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Why may Self-Employed people face more scrutiny?.

Lenders assess risk. When someone is on a PAYE contract, with a regular salary and payslip, it’s easy for lenders to verify income and employment status. But if you're self-employed or contracting, your income might fluctuate, and the way it's paid can vary. This can make it harder for lenders to assess long-term affordability and income stability.

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Here are a few key differences.

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1.   Proving your income..
PAYE Employed:

• Typically need 3 months’ payslips and a P60.

Self-Employed/Contractors:

• Usually required to provide 1–3 years’ worth of accounts or SA302s (tax calculations).

• May need tax year overviews from HMRC and/or an accountant's certificate.

• Limited company directors often need to show salary plus dividends, and sometimes retained profit too.

Example:
A sole trader earning £60,000 might seem more financially secure than a PAYE worker earning £40,000. However, without clear, consistent records, a lender may assess them as higher risk.

Solution:
Work with an experienced mortgage adviser who can help present your income in the best possible light. Some specialist lenders will assess the latest year’s figures or use your day rate if you’re a contractor.

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2.   Affordability assessments.

PAYE Employed:

• As a standard, straightforward monthly salary, plus additional earned income is used in affordability calculations. Some lender may take a percentage of non-earned income as a part of the affordably calculations.

Self-Employed/Contractors:

• Income can vary month to month, and affordability is based on average profits over one to three years. Some lender may take a percentage of non-earned income as a part of the affordably calculations.

• Company structure (sole trader vs limited company) affects how income is viewed.

Example:
A contractor on £400 per day, working five days a week, might have a strong income. But unless this is demonstrated via contracts and history, a lender might discount potential future earnings.

Solution:
Certain specialist lenders may accept day rates multiplied by a fixed number of weeks (often 46–48 per year), offering a more realistic picture of income. A mortgage expert with access to these lenders can help match you to the right criteria.

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3.   Credit Profiling & Financial Stability

All Applicants:

• Credit score, debt levels, and financial conduct are always reviewed.

Additional Considerations for the Self-Employed:

• Business credit issues or inconsistent income may affect personal credit rating.

• Lenders may scrutinise personal and business accounts to assess financial discipline.

Tip:
Keep personal and business finances separated in dedicated accounts. Regular savings and clear credit conduct may improve your profile. Be ready to explain any fluctuations in income.

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4.   Deposit Requirements

Some lenders may require a larger deposit from self-employed applicants to offset perceived risk. However, others may accept standard deposits if income can be clearly evidenced.

Solution:
An experienced adviser can identify which lenders have more flexible criteria, helping you avoid higher deposit requirements unnecessarily.

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How a Specialist Mortgage Adviser Can Help.

At Endemeo, we understand the self-employed and contractor landscape, and we know how to present your case to lenders in the best possible way. We have access to a wide panel of lenders, including those who specialise in complex income types, flexible underwriting, and self-employed mortgage criteria.

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We help by:

• Advising on what documentation you need and how to prepare it.

• Matching you with lenders who understand self-employed income.

• Highlighting lenders that look at day rates, most recent year’s income, or company retained profits.

• Supporting you through the application to ensure it’s packaged correctly the first time.

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Final Thought:

Don’t let possible complexity stop you, Being self-employed shouldn’t stop you from owning your home or investing in property. While the process might be more involved, the right guidance can make all the difference. Every lender is different, and many understand the realities of self-employment better than ever.

If you’d like to explore your options or get a sense of your affordability, get in touch with for a no-obligation consultation.

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Your income may be different, but your home ownership goals are just as valid and achievable.

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*Please note that commercial and some buy-to-let mortgages are not regulated by the Financial Conduct Authority.
**Expat mortgages are available subject to certain terms and conditions.

Your home or other property may be repossessed if you do not keep up repayments on your mortgage.

For inquiries about commercial mortgages and mortgages for holiday homes abroad, we’ll connect you with a trusted partner who specialises in these areas.

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We’re here to make the mortgage journey as simple, stress-free, and rewarding as possible.

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There are also other mortgage options available, such as: Discounted rate mortgages, Capped rate mortgages, Joint borrower/sole proprietor mortgages, and Flexible mortgages.

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What is a mortgage?

A mortgage is a type of loan specifically used to purchase real estate, such as a house or flat. When you take out a mortgage, you borrow money from a lender (usually a bank or building society) to buy the property. In return, you agree to repay the loan, with interest, over a set period of time, typically 15 to 30 years. The property itself serves as a first charge for the loan, meaning if you fail to repay the mortgage as agreed, the lender has the right to take possession of the property through legal processes.

Key elements of a mortgage include:

1. Principal: The amount of money you borrow to buy the property.

2. Interest: The cost of borrowing, expressed as a percentage of the principal. This is how lenders make a profit on the loan.

3. Repayment Term: The period over which you agree to pay back the loan, which can range from 10 to 40 years.

4. Monthly Payments: The regular payments you make to the lender, which usually cover both the principal ( Capital ) and the interest. Early in the mortgage term, a larger portion of your monthly payment goes toward paying off the interest, with more of your payment going toward the principal as time goes on.

5. Deposit: The upfront payment you make towards the property price. Typically, this is a percentage of the home’s value (e.g., 5%, 10%, 20%).

6. Charge or Capital: The property you purchase, which secures the loan. If you fail to repay the mortgage, the lender can take possession of the property to recover their money.