With more people than ever working for themselves, securing a mortgage in 2025 has become one of the biggest financial hurdles for the self-employed in the UK. From media freelancers to local tradespeople and independent shop owners, irregular income patterns can complicate the mortgage process, especially in towns like Southport, where self-employment is a growing part of the economy.
While mortgage approval is a little more involved for those without a fixed salary, it’s far from out of reach. This guide breaks down what self-employed and small business owners need to know before applying, and how working with a specialist broker like The Mortgage Pod or Strive Mortgages can help you secure a mortgage that fits your income and lifestyle.
Self-Employment and the Mortgage Market in 2025
In today’s economy, nearly 15% of the UK workforce is self-employed. That includes small business owners, contractors, sole traders, and freelancers. The flexibility is appealing, but the trade-off is a lack of regular payslips and employer references, which traditional mortgage lenders still rely on for straightforward applications.
In response, the UK mortgage market has slowly adapted. Specialist lenders now offer products tailored to people with complex income streams, provided they can demonstrate financial stability over time.
What You’ll Need to Apply
If you’re self-employed or own your own business, most lenders will ask for the following:
- Two to three years of self-assessment tax returns (SA302s)
- An accountant’s reference or certified accounts
- Business bank statements showing regular income
- Proof of contracts or future work (particularly for freelancers and consultants)
- Credit history and monthly financial commitments
- Details of your deposit and savings
Some lenders are even more flexible, especially in 2025. For instance, a growing number will now consider just one year of accounts, if the business is profitable and other factors (like deposit size and credit score) are strong.
💡 Tips to Improve Your Mortgage Chances
Here’s how you can improve your odds of securing a competitive mortgage as a self-employed buyer:
1. Organise Your Accounts
Having clear, well-prepared accounts is essential. Hire a qualified accountant to prepare your figures if you haven’t already. It adds credibility to your application.
2. Keep Personal and Business Finances Separate
Mixing your finances can confuse lenders. Use dedicated business bank accounts to keep your income and expenses easy to track.
3. Build a Bigger Deposit
A higher deposit reduces lender risk and opens the door to better interest rates. Aim for at least 10%, but 15–20% can make a big difference if your income fluctuates.
4. Reduce Other Debts
Your debt-to-income ratio matters. Try to pay down credit cards, personal loans, or car finance before applying.
5. Use a Specialist Broker
Working with brokers like The Mortgage Pod and Strive Mortgages is a game-changer. They know which lenders are self-employment friendly, and they can package your application to highlight your financial strengths.
Local Property Outlook: Why Now Is a Good Time to Act
Across Southport and Merseyside, property prices are still competitive compared to larger cities. If you’re self-employed and looking to get on the ladder, upsizing, or remortgaging, acting early in 2025 could save you money in the long run.
While interest rates rose in previous years, they’re stabilising now. Some lenders are even reintroducing more flexible deals aimed at self-employed borrowers, including interest-only options, offset mortgages, and variable rate products tied to profit performance.
🤝 Why a Broker Makes All the Difference
Many self-employed applicants are declined by high-street lenders, not because they can’t afford a mortgage, but because their income doesn’t fit the traditional model. Brokers are there to bridge that gap.
A broker will:
- Match you with lenders open to non-traditional income
- Present your accounts and documents in the correct format
- Handle the application process and communication with the lender
- Flag any risks or issues early and advise on how to resolve them
For example, Strive Mortgages specialises in mortgages for entrepreneurs, contractors, and limited company directors. Meanwhile, The Mortgage Pod provides tailored support for freelancers and creatives with fluctuating income.
📣 What to Avoid
Even in 2025, there are common mistakes that can derail an application:
- Applying to multiple lenders at once can damage your credit score
- Overestimating your borrowing power, especially without professional advice
- Failing to disclose full income or expenses
- Submitting incomplete paperwork
Avoid these pitfalls by starting the process early and seeking help from trusted professionals.
Final Thoughts
Self-employment shouldn’t stop you from owning a home. With the proper preparation, advice, and broker by your side, getting a mortgage in 2025 is more achievable than ever.
Support is available whether you’re buying your first home in Birkdale, upgrading in Ainsdale, or investing in a rental property near Southport promenade. Mortgage brokers like The Mortgage Pod and Strive Mortgages are committed to helping self-employed buyers succeed, with experience, access to specialist lenders, and a personal approach.
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