If you’re a sole trader and wondering whether homeownership is within reach, the good news is: yes, you absolutely can get a mortgage! While the journey might look a little different compared to someone in full-time employment, it’s far from impossible. Here’s the inside scoop to help you feel confident about your next steps.
Lenders typically want to see a track record of your earnings. For most, this means at least three years of accounts showing consistent net profit. However, some specialist lenders are more flexible and may consider applications with just 12 months of trading history—or even less in some cases.
The key? Proof. The more evidence you can provide of your income stability, the stronger your case. So, whether it’s certified accounts, tax returns, or bank statements, gather your paperwork and be ready to show that you can comfortably handle those monthly repayments.
One of the biggest challenges for sole traders is that income can vary month to month. Lenders understand this and will often look at your average earnings over the last two or three years to get a clearer picture. If you’ve been steadily growing your business and can demonstrate that your income is stable or trending upward, you’re already in a great position.
And here’s a pro tip: working with a mortgage broker can be a game-changer. They know which lenders are most understanding of self-employed applicants and can guide you toward the ones who’ll look at your application holistically.
When you’re a sole trader, it’s all about proving your income. Lenders will typically ask for:
Having these documents ready to go will not only save you time but also show lenders that you’re organized and prepared.
Bad credit doesn’t have to mean a closed door. It’s true that some lenders might hesitate, but there are others who specialise in working with applicants who have less-than-perfect credit histories.
The impact of bad credit will depend on factors like the type of issue, when it occurred, and how much was involved. If this sounds like you, don’t stress. A mortgage broker can help identify lenders who are more forgiving and willing to work with your unique situation.
The amount you can borrow often comes down to a lender’s affordability calculation. Most will offer up to 4.5 times your annual net profit, though this can vary. For example, if your average profit over the past three years is £40,000, you might be able to borrow around £180,000.
But remember, the strength of your overall application matters too. Having a healthy deposit (around 10% of the property value) and good credit can significantly boost your borrowing potential.
Not all lenders view sole traders the same way. While some might be cautious, others are more open to considering self-employed applicants. A mortgage broker’s expertise can save you time, reduce stress, and connect you with the lenders most likely to say yes.
Plus, they’ll help ensure you’re getting the best deal for your circumstances—because you deserve a mortgage that works for you.
Getting a mortgage as a sole trader might feel like navigating a maze, but with the right guidance, it’s entirely doable. If you’re ready to explore your options, our team of mortgage experts is here to help. Let’s chat about your situation and start turning your homeownership dreams into reality. Reach out today—we can’t wait to hear from you!
If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.
Yes. Being a sole trader does not prevent you from getting a mortgage. Lenders will assess your income differently from employees, often using SA302 tax calculations and accounts to determine affordability. Many lenders offer competitive mortgage options specifically for sole traders.
Most lenders prefer at least 24 months of trading history. Some specialist lenders may consider applicants with just one year of accounts if you can demonstrate stable income and a strong financial record.
Typically, you will need:
While some high street lenders have stricter criteria, there are many specialist lenders who cater to sole traders. A mortgage broker can guide you to lenders who understand sole trader income, improving your chances of approval and access to competitive rates.
Yes, it may be possible. Some lenders will accept applicants with just one year of trading history, particularly if you were previously employed in the same field. A mortgage broker experienced with sole traders can help present your income in the most favourable way.
