Joint Mortgage When One Applicant Is Self-Employed

Getting a Joint Mortgage When One of You Is Self-Employed: A Complete Guide

If you’re exploring the idea of applying for a joint mortgage and one of you is self-employed, you’re not alone.

Many couples or co-buyers are in a similar situation, where one person is on a traditional PAYE income and the other works for themselves. The good news is you can get a joint mortgage when one applicant is self-employed, subject to meeting the criteria of the lender.

That said, the process can involve a bit more paperwork, careful planning, and lender-specific requirements. But that’s where expert advice comes in.

At Kerr & Watson, we guide you through every step, not just helping you understand what’s needed, but making sure your application is positioned the best possible way.

Can You Get a Joint Mortgage When One Applicant is Self-Employed?

Yes, lenders will accept joint mortgage applications where one of you is self-employed. The application process is very similar to any other joint mortgage, the difference lies in how income is assessed.

If you’re employed, your payslips and P60 are generally enough for the lender. But if you’re self-employed, the lender will want a bit more detail about your income. That doesn’t mean it’s harder to get a mortgage, it just means the documentation and assessment process will differ slightly for each of you.

The right lender will consider your full financial picture. Some are more flexible than others, especially when it comes to self-employment

How Do Lenders Assess Income When One Applicant is Self-Employed?

When you apply for a mortgage jointly, both incomes are assessed together to calculate how much you can borrow. The self-employed applicant will usually need to show two to three years of accounts or tax returns to prove the profits. Some lenders are even happy with just one year of accounts, depending on your circumstances.

The exact way your income is assessed will depend on how you’re self-employed:

If You’re a Sole Trader

Lenders typically ask for SA302s and tax year overviews from HMRC to verify your income. They’ll often average your income over the last two to three years. They may wish to see bank accounts too to show how the business is trading currently.

If You’re a Limited Company Director

Lenders may look at your salary and dividends. Some will also consider your share of the company’s net profits, which can be beneficial if you leave money in the business rather than taking it out as income. They will likely need bank statements too.

If You’re a Contractor

If you work on a day rate as a contractor, some lenders will annualise that rate, giving you a higher borrowing capacity if the contracts are ongoing and stable. You’ll often be asked for contracts, bank statements and a history of consistent work.

For assessing income, a common multiple of income is day rate x 46 weeks of the year. For example, £400 per day x 46 weeks = £92,000 per annum.

Each lender works different so give us a call to find out how you would be assessed.

If You’re in a Partnership

Lenders will typically want to see your share of the net profits, along with tax documentation to back it up. Most will only accept partnership income if you own at least 20% of the business.

The employed applicant will usually only need to provide three months’ worth of payslips, a P60, and bank statements. Their income is considered more straightforward and stable, so it’s generally a quicker part of the assessment.

How Much Can You Borrow?

Lenders use income multiples to determine your maximum borrowing, typically between 4 and 5 times your combined income, though some may go higher depending on your circumstances or lower if there are debts / dependants to be taken into account or shorter terms. If one of you is self-employed, lenders may average your earnings over multiple years, which could slightly lower the figure compared to a straightforward employed income.

For example, if your employed partner earns £50,000 and you, as a self-employed applicant, have an average income of £45,000, your combined income is £90,000. A lender might offer you between £360,000 and £450,000, depending on credit history, deposit, and overall affordability.

Some lenders are more cautious with self-employed income, but others are far more flexible – especially if you have a solid track record and supporting documentation. That’s why it’s important to get advice tailored to your circumstances.

How Much Deposit Will You Need?

Just like any mortgage, the more deposit you have, the better. A larger deposit reduces the risk for lenders and opens the door to better interest rates. Generally speaking, you’ll need at least 5% of the property value as a deposit, but 10% or more may be better if you are in a position to raise that.

If one of you has a lower credit score or you have only a short trading history as a self-employed applicant, increasing your deposit can help strengthen your application. Your mortgage adviser can guide you here.

We can help you work out the deposit required based on the lenders who are most likely to support your case. That’s part of the tailored advice you get when working with Kerr & Watson.

What Documents Will You Need?

Here’s a general idea of what you’ll need to prepare:

For the employed applicant:

• Last 3 months’ payslips
• Latest P60
• 3 months’ bank statements

For the self-employed applicant:

• SA302s and tax year overviews (usually last 2–3 years)
• Full accounts prepared by a qualified accountant (for Limited Companies)
• Business bank statements (in some cases)
• Contracts and invoices (if contracting or freelancing)
• ID, proof of address, and credit report for both applicants
• Deposit source and savings account statements for both applicants

Documentation requirements can vary significantly depending on the lender, your business structure, and how long you’ve been trading.

We will guide you to prepare everything in advance, to reduce surprises during the application.

Will You Get a Worse Mortgage Deal If One of You Is Self-Employed?

Not usually. Being self-employed doesn’t mean you’re penalised with a worse mortgage rate – as long as your income is stable, well-documented, and your credit profile is solid.

The good news is, there are plenty of lenders out there who understand how self-employment works and they offer competitive products.

Why It’s Worth Speaking to a Mortgage Broker

Applying for a mortgage when one of you is self-employed can be a bit more complex.

With the right preparation and guidance, you can secure a suitable mortgage that fits your situation.

At Kerr & Watson, we specialise in helping self-employed clients and mixed-income households get the mortgage they deserve.

You’ll benefit from:

• Tailored advice based on your business structure
• A clear breakdown of what documents you’ll need
• Access to lenders who accept one year of accounts if needed

Conclusion

Getting a joint mortgage when one of you is self-employed might take a little extra effort, but it’s achievable as long as you meet the lender criteria and pass affordability for the amount that you need.

Whether you’re just starting to explore your options or ready to apply, we are here to guide you every step of the way.

We’ll help you prepare the right documents, find the most suitable lender, and make sure your joint application is as strong as it can be. Contact Kerr & Watson today for independent advice.