Can you get a mortgage without a full-time job?

Tips to get approved

Prove your income

Many lenders are happy to give mortgages to self-employed, part-time workers or freelancers if they’ve been trading or working for more than three years, and have two years of tax returns and business accounts to prove their income.

So, if you’re thinking of getting a self-employed mortgage soon, but haven’t been trading or working for long enough, it’s better to wait until you can provide the lender with the evidence they require before putting in an application.

Save for a larger deposit

Some lenders will impose stricter rules on the amount of deposit you’ll need to get a freelance mortgage, so you may need to dig a little deeper to come up with the extra funds before they’ll accept you for a mortgage.

This isn’t always the case though, as some lenders may prefer to see future profit projections to ensure that you can afford the repayments now and in the years to come.

Shop around to find reputable lenders who are well-known for offering self-employed mortgages and approach them first to see what kind of deposit or projections they’ll expect to see.

Once you’ve decided which one you feel offers the best fit for your circumstances, you can apply for your mortgage.

Keep your files in order

To further increase your chances of being accepted for a freelancer or part-time mortgage, you’ll need to make sure that all of your accounts and tax returns are up-to-date and in good order, as the lender will need to see this evidence before considering you for a mortgage.

This, along with a solid credit rating, a healthy deposit and watertight accounts, will work in your favour.

Documentation required

Lenders will need to assess your income to work out how much you can afford to repay. The approach they use will depend on whether you’re running a business, are in a partnership, or are a contractor.

But generally speaking, the following is what lenders will expect to see:

SA302 forms

Lenders will want to see the income you’ve reported to HMRC and the tax paid. SA302 forms show this information, as does a “tax year overview” – HMRC can provide both.

Most lenders will expect to see the last three years of calculations, though some may accept two.

Use an accountant

It’s vital to have a certified or chartered accountant prepare your books. Many lenders won’t accept accounts that haven’t been signed off by an accountant.

Long-term contracts

If you can show evidence of long-term contracts from clients, regular sales or repeat business, this may go some way to allaying lenders’ concerns.

It’s worth providing as much evidence as possible that your business or work is robust and regular, above and beyond the documents the lender specifically requests.