Joint Mortgage Self-Employed

Can I get a joint mortgage if I’m self-employed? How does it work?

You absolutely can. It may be that you’re both self-employed, or maybe just one of you is.
Either way, it doesn’t matter. There are certain things we need to consider, including how long you’ve been self-employed.

We look at your history when you’re self-employed. It’s a little different from being employed where you get paid a salary and we look at what you earn now. When you’re self-employed, we’re looking at what you earned last year and the year before.

Normally we average the two, but if you’ve just got one year, that’s okay with a couple of lenders. There’s a choice there. Other factors may dictate whether you can get a mortgage if you’re self-employed, but having a joint mortgage is not one of them.

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

It’s about the timing. We can cover a few things within ‘self-employed’ – you might be a contractor, a sole trader, you might have a limited company or a share of a limited company. It depends on the lender, but if you own more than 20% or 25% of a company, most lenders consider you as self-employed.

There are also other factors. Timing is the big one, and profit is another. How you pay yourself is key too if you’re a company director – you might pay yourself a salary and some dividends.

If you’re a sole trader, it’s all about how much money you’ve made. We look at your turnover minus your expenses and costs, which is your net profit. It’s also about how long you’ve been doing that for. As long as it’s at least a year, there’s possibly something we can do. If it’s two years, even better.

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

Let’s start with sole traders. Most self-employed people are sole traders, and in this situation we’re going to look at your net profit. We’ll ask for your last two years SA302s or tax calculations. When you or your accountant does your tax return, once that’s submitted, you get this tax calculation – it’s a summary of your income and how much tax is due.

Then we’ll want a document called a tax overview, which is a summary of your tax account. It should say that you had some tax to pay, you’ve paid it and now don’t owe anything.

We’re recording this in June 2025, and you might have done your April 2025 tax return, but you haven’t had to pay the tax yet because it’s not due until January. Your tax overview for 2025 will show that there’s a balance to pay. Some lenders will want to see that you’ve got the money to pay that, or they might even ask you to pay it before the mortgage completes. Either way, we’re not too fussed about whether that shows a zero.

If you’re a director of a limited company, I’m going to ask for the same documents, as they show your salary and dividends. I’m probably going to ask you for your accounts as well, because some lenders will use your share of profit as opposed to your dividends. We’ve talked about that on other podcasts like limited company director mortgages.

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

I wouldn’t say there are any restrictions. You can do the same as anyone else. Not all lenders will accept a lower deposit if you’re self-employed, but there are only a couple of exceptions.

Normally we’d say you need a 5% deposit. If you’re self-employed, you might be better off with 10%, but there are lenders with 5% – there’s just less choice. In terms of requirements, it’s just slightly different documents, as we just said.

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

This is the same for everyone, employed, self-employed or otherwise, but the better your credit score, the better your chances. So make sure everything’s always paid on time.
Having a little bit of credit is good as well.

If you’re self-employed, you probably have experience of your accountant – or even yourself – trying to get your profit as low as possible to pay less tax. But that doesn’t help us get a mortgage. You can’t have the best of both worlds.

You can’t put every possible expense through to lower your tax liability and then expect to borrow as much as you possibly can from a mortgage lender – because we’re looking at your profit. Just remember we’re going to be looking at profit, not turnover.

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

Yes, subject to credit score, like anyone else. Your partner might be self-employed or employed. Maybe you own a business together. Either way, it makes no difference at all.

If you’ve got children, it’s often best to use both incomes, because it increases what you can borrow.

Are there any additional considerations for the self-employed when applying for a joint mortgage versus the employed?

It’s just different paperwork and preparation, like the profit we just talked about. It probably takes a little longer to get these things lined up. Are we going to wait until the end of the tax year, or are last year’s figures high enough? It’s just preparation like that, really.

Different documentation is needed. We don’t want your payslips. In fact, even if you’re a director of a limited company and you get a small salary, we’re not interested in your payslips, because that’s the here and now – it’s the history we’re after.

Other than that, the same rules apply as for everyone else. It’s the same deposit – with a 5% or 10% minimum. If you’re remortgaging, all the top lenders accept the self-employed. Some lenders’ criteria are slightly better than others, and especially for company directors, so that can affect where we go.

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

If you’re adding your partner on, you can probably borrow more if they’ve got an income. On the flip side, if your partner doesn’t have any income and you’re adding them on, they may detract from the total you can borrow.

If you’ve got two children, and Partner A is self-employed or employed, and Partner B doesn’t work, they are counted as a dependent, like the children. They’re an extra drain on the resources, in the nicest possible way.

But if Partner B is earning just a little bit, they’re no longer reducing what you can borrow and are instead increasing the total. It can be quite a big jump by adding someone on – or not.

If you’re married, most lenders want it to be a joint mortgage. If the deposit is in a joint account, it needs to be a joint mortgage. It’s best to talk it through. We might be taken down the path of a joint mortgage, but if you’re not married, it’s your money. You don’t need to add your partner on if you don’t want to, but it might increase your chances of approval if you do.

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

The best thing to do, for anyone that ever wants a mortgage in any of these podcasts, is speak to a mortgage broker.

We can iron out all the potential challenges and obstacles so that the journey is smooth for you. You don’t have to face any of those things on your own.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

For specialist tax advice, please refer to an accountant or tax specialist.