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Self-employed people looking to buy a home may have more mortgage options available than they expect, even if their income doesn’t follow a regular monthly salary.
New research from Nottingham Building Society has highlighted how concerns about mortgage eligibility can discourage self-employed people from applying.
The research found that 49% of self-employed respondents had delayed, abandoned or decided against a mortgage application because of how they earn their income.
Yet being self-employed does not automatically mean you need a specialist mortgage, a larger deposit or several years of business accounts before applying.
What Does the Research Tell Us?
The findings, reported by Traders Union in October 2026, suggest that uncertainty about mortgage eligibility may be preventing some potential buyers from exploring their options.
The research also found that 27% of respondents across the wider group had delayed or reconsidered applying because of their income arrangements.
For someone running their own business, it can be difficult to know how much a mortgage lender will consider as income.
A sole trader may have different earnings each year, while a limited company director might receive a relatively small salary and leave some profits within the business.
These circumstances can affect how lenders calculate borrowing capacity, though they do not necessarily prevent someone from getting a mortgage.
Self-Employed Borrowers Can Access Standard Mortgages
Self-employed applicants can generally access the same mortgage products as employed borrowers, provided they meet the lender’s requirements.
The main difference is how income is assessed.
Sole traders are commonly assessed using their taxable profits, while limited company directors may be assessed through salary and dividends. Some lenders can also consider company profits when calculating affordability.
You May Not Need Several Years of Accounts
Having two or more years of trading history can provide access to a wider choice of lenders, although some will consider applicants with just one completed year of accounts.
This may be particularly relevant for someone who has recently started a business after working in the same profession for several years.
The income evidence required will depend on the lender, business structure and financial circumstances.
Why Looking Beyond One Lender Matters
Different mortgage lenders can reach different borrowing figures using the same financial information.
For example, a limited company director who retains profits within their business may receive a lower borrowing estimate from a lender that only considers salary and dividends.
Another lender may be prepared to assess their share of company profits, potentially producing a different result.
At UK Moneyman, we have access to over 90 mortgage lenders, giving us a wider range of lending criteria to consider for self-employed applicants.
This does not guarantee that a mortgage will be available, although it means a decision from one lender does not necessarily represent the options across the wider market.
Don’t Rule Yourself Out Before Checking
The research is a useful reminder that concerns about eligibility are not always the same as being ineligible.
If you’ve been putting off buying a home because you’re self-employed, it’s worth establishing how lenders may assess your earnings before deciding that a mortgage is out of reach.
Your trading history, business structure, deposit and affordability will all play a part, and a shorter trading history does not automatically mean you need to wait before applying.
Understanding your self-employed mortgage options can give you a more realistic picture of what you may be able to borrow and which lenders could consider your circumstances.
