Self-employed
Mortgage as a self-employed person: how does it work?
Self-employed people can apply for a mortgage, but the assessment works differently. What lenders want to know and what to consider.
5 min read
As a self-employed person you can apply for a mortgage, but the assessment works differently from having a permanent contract. Lenders look at your sustainable income: what you average over the past years, adjusted for the risks of self-employment.
Income assessment
Most lenders use the average of your taxable profit over the last 1 to 3 years, capped at the income of the most recent year. You will need your annual statements, income tax returns, and possibly your financial statements. Some lenders also accept recent revenue figures as supplementary evidence, but taxable profit remains the starting point.
How long have you been self-employed?
Been self-employed for less than a year? A mortgage is more difficult but not always impossible. Some lenders apply more flexible standards for self-employed people in specific sectors, or accept additional security such as savings or a higher personal contribution. This requires a customised approach.
Key considerations
Consider: the presence of disability insurance (AOV), the business structure (sole trader or BV), any pension provision and the size of your business debts. All of these factors influence how lenders assess your application and what rate they offer.
Disclaimer
This is general information, not personal mortgage advice. Standards and requirements vary by lender and situation. A Wft-certified advisor will assess your situation based on your current details.