Work habits in the UK continue to evolve and change. And so, the mortgage industry is addressing concerns from the self-employed. Guess what? Did you know you can get a mortgage if you are self-employed? You may just need to get some extra steps in place. But we are here to help and get you ready for homeownership!
Let’s dive in!
Yes, you can get a mortgage in the UK if you're self-employed, unemployed, retired, or haven't been in a job long. But the process may be more complex. Lenders focus on affordability, income stability, and creditworthiness. Here’s what to expect:
1. Self-Employed
✅ Possible? Yes, but stricter requirements
📌 What You Need:
• 2-3 years of accounts
• SA302 tax returns + tax year overviews from HMRC
• Bank statements to show your income stability
• A good credit score & deposit (10-20% is usually needed)
💡 Tip: Using an independent mortgage broker specialising in this to find more accommodating lenders.
2. Unemployed
✅ Possible? Yes, but harder
📌 What You Need:
• Proof of alternative income (e.g., savings, rental income, pension, benefits)
• A larger deposit (often 20%+)
• A strong credit score
💡 Tip: Some lenders may approve if you have a co-signer or guarantor.
3. Retired or Nearing Retirement
✅ Possible? Yes, but age limits apply
📌 What You Need:
• Proof of pension income, savings, or investments
• Some lenders have a maximum age limit (often 75-85 years old at mortgage end)
• Equity Release (like lifetime mortgages) or retirement mortgages may be an option.
💡 Tip: A Retirement Interest-Only (RIO) mortgage may offer lower repayments.
4. Haven't Been in a Job Long
✅ Possible? Yes, but depends on the lender
📌 What You Need:
• Some lenders require at least 3-6 months of employment
• If you are switching jobs but in the same industry. It’s easier to get approval
• A strong credit score and larger deposit may help
💡 Tip: If on probation, some lenders may still approve. Especially if you have a contract showing stable employment.
General Tips for Approval
✅ Improve Your Credit Score – Pay off debts, avoid overdrafts, and check your credit file.
✅ Save a Bigger Deposit – A 10-20% deposit makes approval easier.
✅ Use a Specialist Mortgage Broker – Some lenders specialise in self-employed, unemployed, or retired applicants.
✅ Show Stable Income – Even if it's from investments, pensions, or side businesses.
Would you like help finding a mortgage for your situation? Give us a call to chat with us today or click below to make an appointment with an adviser!
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