Joint Mortgage Self-Employed

A mortgage is likely to be the single largest financial commitment you ever make. There’s a wide range of mortgage products out there, with varying interest rates and repayment options available.

Get in touch for a no-obligation chat about how we might be able to help you.

Get In Touch

1 Step 1

Home » Self-Employed Mortgage » Joint Mortgage Self-Employed

Joint Mortgage Self-Employed (Part 1)

Joanna Wazny explains how a joint mortgage works for those who are self-employed. Episode one of two, recorded in March 2025.

Podcast approved by The Openwork Partnership on 28/03/2025

How does being self-employed affect your eligibility for a joint mortgage?

With a joint mortgage application, it doesn’t matter if one of you is self-employed and the other is employed, or you’re both employed, or both self-employed. Perhaps only one of you has a job – all of those combinations will work for a mortgage.

Getting a joint mortgage in the UK is straightforward, but it may involve a few extra steps. People often take out joint mortgages with their spouse or partner, but it’s also possible to get one with another family member.

What documentation is typically required for self-employed individuals applying for a joint mortgage?

To get a self-employed mortgage, you will usually need to provide two or more years of accounts, ideally prepared by an accountant. You’ll also need SA302 forms or tax year overviews from HMRC, again for two or three years.

You could also be asked by a lender for evidence of upcoming contracts if you’re a contractor. If you’re a company director, you may need evidence of dividend payments or retained profits.

Are there any specific requirements or restrictions for self-employed applicants considering a joint mortgage?

You can get a mortgage if you work for yourself, although lenders prefer job stability and the predictability of a reliable income.

If your income tends to fluctuate from month to month, which is common for the self-employed, lenders may be more nervous about letting you borrow with them. Because of this, you may need to provide more details about your income.

For self-employed applicants, mortgage lenders generally require at least two years of accounts, signed off by a certified or chartered accountant.

How can self-employed individuals improve their chances of being approved for a joint mortgage?

If you can show consistent or increasing profit over a number of years, this will help your application. Lenders look at your average profits over a period of time to assess your risk profile.

If your income varies dramatically from year to year, you may need to provide further evidence of future income, such as new clients or contracts, or that you have significant savings.

Can self-employed applicants include their spouse or partner in a joint mortgage application?

As I mentioned, it doesn’t matter whether the two of you are employed, self-employed or only one of you has a job. All of those combinations work.

For a joint mortgage, lenders carry out checks on both parties to ensure that the mortgage is affordable. The benefit of applying for a joint mortgage over a single mortgage is that it allows you to combine your incomes and potentially buy a more expensive property than you could on your own.

Are there any additional considerations for self-employed individuals on a joint mortgage, compared to employed individuals?

Lenders do prefer job stability and the predictability that comes from a reliable income. In the UK, obtaining a mortgage when you are self-employed can be a bit more challenging than if you’re employed full-time by a company.

Lenders typically require more documentation and proof of income to assess eligibility and how much you can borrow. Within someone who’s employed, lenders usually just require recent pay slips or P60 forms as proof of income.

A self-employed individual, meanwhile, needs to provide accounts or tax returns, usually for the last two to three years. This will demonstrate your income and help lenders assess affordability. Some lenders may consider just one year’s accounts for established sole traders or contractors.

What are the advantages and disadvantages of applying for a joint mortgage as a self-employed individual?

There are many benefits of a joint mortgage, such as potentially having a higher deposit amount, lower monthly payments and the ability to buy a property that you may not be able to afford on your own.

If you are interested in buying a property with a spouse, partner or friend, a joint mortgage could be a good option. Essentially, a joint mortgage enables two or more people to apply for a single mortgage loan to purchase a property.

One of the reasons why joint mortgages are so popular in the UK is that they allow people to buy a property that they couldn’t otherwise afford. It’s because the income and credit worthiness of all applicants are taken into account, which can increase the amount you can borrow.

But joint mortgages do also come with risks. Each borrower is equally responsible for making the mortgage payments, so if one borrower defaults on the payments, the other borrower will be held liable.

It can be a big financial burden if one borrower isn’t able to contribute to the mortgage payments. It’s important to discuss and agree how you will share your financial responsibility and what will happen if one borrower isn’t able to pay.

Before applying for a joint home loan, it’s a good idea to seek independent legal and financial advice. A professional can help you to understand the risks and benefits of a two-person mortgage, with guidance on the best course of action for your specific situation.

Overall, joint mortgages can be a great option for those looking to buy a property with another person, but it is important to understand the implications to make an informed decision.

How can self-employed individuals navigate potential challenges or obstacles when applying for a joint mortgage?

The key is demonstrating the ability and success of your business when applying for a mortgage as a self-employed individual. You face unique challenges when seeking a mortgage.

From documenting your income to addressing credit worthiness, concerns and proving business stability, navigating the mortgage landscape requires careful preparation. Navigating the mortgage landscape as a self-employed individual can be demanding, but with preparation, a mortgage is within reach.

I have some valuable tips to help self-employed mortgage applicants streamline the process and enhance their chances of success:

Organise your financial documentation. As a self-employed individual, you need to provide evidence of your income and financial stability. Be sure to gather your tax returns, business accounts and bank statements.
Improve your credit worthiness. A strong credit history is essential for securing favourable mortgage terms. Take proactive steps to improve your credit worthiness by paying bills on time and reducing outstanding debts.
Build a solid business profile. You can significantly bolster your mortgage application, showcase business stability and growth potential by creating a detailed business plan. Evidence of consistent income is also important.
Consider speaking to a self-employed mortgage specialist.

Don’t miss part two of our special podcast on joint mortgages for the self-employed.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 28/03/2025

Speak To an Expert

Our goal is to fully support you during one of the most exciting but also important moments of your life. We paint a clearer picture and provide personalised mortgage solutions using our best experience and expertise.

Joint Mortgage Self-Employed (Part 2)

We continue the conversation on joint mortgages for the self-employed with Joanna Wazny. Episode two of two, recorded in March 2025.

Podcast approved by The Openwork Partnership on 28/03/2025

What factors do lenders take into account when assessing the affordability of a joint mortgage for self-employed applicants?

Mortgage lenders assess self-employed applicants differently from those with traditional employment. The difference is in how lenders analyse your income to determine if it’s stable and sufficient to cover mortgage repayments.

They may request tax returns, business accounts or SA302 forms as evidence. Lenders often require two to three years of financial accounts to assess your income stability. If your income has been consistent or growing during this period, that can work in your favour.

A good credit history is essential for mortgage approval, and lenders will check your credit reports to assess your financial responsibility. The size of your deposit can also affect the interest rates and deals available to you – a larger deposit can improve your borrowing options.

The last factor is affordability. Lenders will evaluate your monthly expenses to ensure you can comfortably afford the mortgage payments.

Are there any specific types of joint mortgage products designed for self-employed individuals?

If you’re your own boss and applying for a mortgage, you’ll get the same mortgage product as someone in salaried employment.

Can self-employed applicants benefit from any government schemes or initiatives when applying for a joint mortgage?

Self-employed applicants benefit from the same government schemes or initiatives as employed applicants. It’s as simple as that.

What should self-employed individuals know about the income assessment process for a joint mortgage application?

If you’re self-employed as a sole trader or part of a business partnership, lenders will usually focus on your net profit. This figure reflects the income you’ve earned after deducting all business expenses.

To support your self-employed mortgage application, lenders will ask for your tax returns and SA302 forms from HMRC, typically covering the last two to three years. Those documents provide a clear view of your income over time. Lenders tend to favour applicants who can demonstrate consistent or growing profits during this period.

If you run a limited company, lenders assess both your salary and any dividends you take. Directors often draw a small salary relying on dividends to make up the bulk of their income.
Both those elements will be considered by mortgage companies when assessing affordability.

In some cases, retained profits within the company may also be taken into account, although this depends on the lender’s criteria. You will need to provide company accounts and tax returns for at least two or three years.

How does the length of self-employment history impact the likelihood of being approved for a joint mortgage?

Most mortgage lenders prefer to see a minimum of two years’ worth of accounts. If you have been self-employed for less time, it can be more challenging to secure a mortgage.

Some lenders may consider applicants with only one year of accounts, but this is typically based on a strong financial performance – or other supporting factors, such as a large deposit.

Having your accounts professionally prepared by a certified accountant will lend credibility to your self-employed mortgage application, and provide a clearer picture of your financial stability.

Are there any self-employed-friendly lenders or mortgage brokers you would recommend for joint mortgage applications?

Navigating the mortgage market as a self-employed borrower can sometimes feel complex, especially when dealing with fluctuating income or unique financial circumstances. A mortgage broker who specialises in self-employed mortgages can guide you through the process and help you find lenders that understand your situation.

Whether you’re seeking advice on limited company director mortgages, freelancer mortgages or even mortgages for seasonal workers, a broker can tailor the search to suit your needs.

We can also help with solutions for more complex income situations, including borrowers with multiple income streams.

Can self-employed applicants include income from multiple sources in a joint mortgage application?

Not all income is treated the same when it comes to mortgage applications. While your basic salary is always considered, other sources of income like bonuses, overtime or benefits may only be partially included – or not at all.

To break that down, when it comes to self-employment income, 100% is considered. Lenders typically consider your average net profit or salary and dividends over the last two to three years.

If you’re buying with someone who is employed, lenders will take 100% of their basic salary. With bonuses and overtime, some lenders may average those payments over the last three to twelve months – or longer. They may only count a portion of this income, especially if it’s irregular or not guaranteed.

But if your bonuses or overtime are consistent and guaranteed, some lenders may consider the full amount. Commission is treated the same way. If it is regular, up to 100% could be counted, but if not, it may be less.

If you are retired, your pension income is generally fully considered, whether that’s a state pension, a private pension or an annuity. If you have rental properties, lenders may count 50% to 75% of your rental income after expenses. They also check if this income can cover your mortgage if rates go up.

Another area is benefits and tax credits. Benefits like child benefit or universal credit may be considered, but this varies widely. 100% may be counted, or sometimes only a portion.

The last type is income from investments, like dividends or interest. This may be included, but lenders are cautious due to its variability. They may consider a portion, often averaged over several years to account for fluctuations.

You’ve demonstrated how a mortgage broker can help – is there anything else you’d like to add?

Using a broker can save you a lot of time and stress, as we handle everything from searching for a deal to applying, and communicating with the lender on your behalf.

Mortgage brokers have expert knowledge of the mortgage market and will recommend deals to suit your personal situation. We also have access to software to search mortgage deals much faster and more thoroughly than you could yourself.

We will know which lenders are most likely to accept you, and help you steer clear of applying for deals you are unlikely to get – which could potentially have a negative impact on future applications.