Mortgages for Freelancers

Securing a mortgage when undertaking any form of self-employment involves finding a lender that aligns with your specific trading structure. If you are self-employed and engage in short-term projects for multiple clients, you are likely to be classified as a freelancer.

Although many lenders accept self-employed applicants, eligibility criteria can vary significantly between providers. As such, it is essential to consider lenders with criteria suited to freelance professionals. In this guide, we explore lender requirements for freelancers, strategies to strengthen your mortgage application, and the benefits of working with a specialist mortgage broker.

Can freelancers get a mortgage?

Securing a mortgage as a freelancer is often more complex than for someone in permanent employment, but it remains entirely feasible. Many established and well-remunerated professions—such as journalism, IT consultancy, and web design—commonly follow freelance working models.

Most lenders will assess your application similarly to that of a sole trader or contractor, depending on how your income is structured. If you work via an agency but are paid through an umbrella company, your income may be assessed as employed earnings, even if you consider yourself self-employed.

Regardless of the structure, mortgage applications from freelancers tend to involve greater scrutiny, particularly concerning income verification. Lender assessments vary based on individual policies, payment methods, and contract types. This complexity makes it especially beneficial to work with a mortgage broker who specialises in freelance applicants.

How to get a mortgage as a freelancer

The most critical factor in securing a mortgage as a freelancer is demonstrating a reliable and consistent income. Below are the key criteria most lenders will expect you to meet:

Proof of Income
Lenders typically require 2 to 3 years of financial documentation, including full accounts, SA302s, and corresponding bank statements. However, some may accept just 12 months of records for freelancers in certain professional sectors, especially where there is a strong employment history in a similar role.

Contract Evidence
Providing current, previous, and upcoming contracts can help establish financial stability. Extended gaps—such as periods of three months or more—between contracts may raise concerns for some lenders. Others, however, may be more flexible if you can supply a clear and credible explanation.

Credit History
While it is possible to obtain a mortgage with adverse credit, doing so as a freelancer can present additional challenges. That said, it is not unachievable, and professional advice is recommended if this applies to your situation.

Deposit Requirements
A minimum deposit of 5% is generally expected, although some lenders may require a higher contribution from self-employed applicants to offset perceived risk.

How affordability is calculated

Lenders assess income based on the nature of your self-employment and their interpretation of freelance earnings. As a result, different lenders may evaluate the same income in varying ways. This can work in your favour, provided you select a lender whose assessment method aligns with your income structure.

Most lenders will typically offer borrowing of approximately 4 to 4.5 times your annual income. To determine this annual figure, they may use one of the following assessment methods:

• Average Income: Many lenders calculate the average income over the past three years. Some, however, may consider only the most recent year’s figures—beneficial if your earnings have recently increased, though less so if they have declined.

• Contract-Based Assessment: Where applicable, lenders may evaluate your contract or apply an annualised calculation to your day rate.

• Combined Income Sources: For applicants with multiple income streams—including a mix of self-employed and employed income—some lenders may consider the full income picture. However, greater income complexity often necessitates working with a specialist lender.

Best mortgage lenders for freelancers

While mortgages for the self-employed can be more complex, the increasing number of freelance workers in the UK has prompted more than 50 lenders to consider freelance income. However, with each lender applying different criteria and approximately 30% of freelancer mortgage products available exclusively through intermediaries, using a mortgage broker gives you the strongest chance of securing a deal tailored to your circumstances.

Lenders vary in terms of how long you must have been trading as a freelancer and whether they assess your income based on an average across multiple years or solely your most recent earnings.

• 12 Months’ Trading History: Specialist lenders such as Stafford Railway Building Society, Kensington, or Aldermore may be open to applicants with one year of accounts.

• Two Years’ Trading History: Some mainstream banks, including NatWest, Nationwide, and Halifax, may consider your application.

• Three Years’ Trading History: A broader range of lenders is likely to be available, including options such as Kent Reliance.

Working with a broker who understands these distinctions can significantly improve your access to suitable mortgage products.

Using freelance earnings as a secondary income

If you rely on freelance income as a secondary source, it is advisable to seek out a lender that will take 100% of this additional income into account. While most lenders will consider supplementary income alongside your primary earnings, they typically include only 50% to 75% of secondary income in their affordability calculations.

A mortgage broker with expertise in self-employed and freelancer mortgages can help identify lenders that are more likely to assess the full extent of your income—particularly when it is drawn from multiple sources.

Frequently Asked Questions