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Can you get a mortgage if you haven’t been self-employed for long?

Last updated: December 1, 2022

Graham Taylor in striped T-shirt in front of neon sign that says 'Your mortgage our problem'

The question of ‘How long do I need to have been self-employed for?’ is one we hear most frequently.

Mortgage lending is a cautious activity and the last thing lenders want is to repossess your home. As such they look for a track record in running your own business and the best way to do this is to specify a minimum amount of time that you must have traded for.

The majority of lenders in the UK will require you to have been running your own business for a minimum of two years, some will require three. However, don’t worry if you have not been trading for two years as there are still options available to you.

Certain lenders will still provide a mortgage offer for those who can only provide one set of finalised figures. So, great news if business has been good in the first year and you need move house or raise some extra capital!



Why so much paperwork?

Whilst on the subject, it is important to address the subject of why lenders require finalised figures and why they simply can’t work off projections or management accounts? The reason is simple. Lenders base mortgage affordability against taxable income. It may be that your management accounts show some great sales figures year to date but an as yet unaccounted for large expense in month 12 will reduce the profit. If a mortgage company were to lend against the management information and, at a later date, have to repossess the property due to arrears it could be argued that they did not lend responsibly in the first place. By using the finalised accounts and tax returns, lenders are able to demonstrate with confidence that the amount they have advanced was affordable.

So, in summary the minimum period for self-employment is 1 year. However you have more options with 2 years under your belt. If you don’t yet have a full year of finalised accounts then it is a waiting game, but hopefully not for too long…

Graham Taylor in front of Hudson Rose office near Stroud

For more information on mortgages for the self-employed why not get in touch and we’ll send you a copy of our handy guide.

Happy mortgage hunting!

G 🤘

Some other blogs that may be of use to you:

What is ‘Mortgage Affordability’?

5 things that could slow down your mortgage application

Could the new mortgage guarantee scheme be your ticket to getting on the property ladder?









Hudson Rose Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Hudson Rose Services Ltd, trading as Hudson Rose. Registered Office: 7 Bridge Street, Nailsworth, Stroud, GL6 0AA
Registered Company Number: 11008147 Registered in England. FCA 799302

Hudson Rose Services Cirencester Ltd, trading as Hudson Rose. Registered Office: 78 Dyer Street, Cirencester GL7 2PF Registered Company Number: 13349772 Registered in England

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £499. There is no charge for any initial consultation.

Your Home may be Repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Not all forms of Property Development Finance are regulated by the Financial Conduct Authority

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