Self-employed first-time buyer: a 95% mortgage with a thin credit file

The client and their goal

A self-employed sole trader was buying their first home with a 5% deposit. Their income had risen slightly year on year.

The challenge

Three things made this case harder than it looks.

• At 95% loan-to-value, fewer lenders are available and their criteria tend to be stricter.
• To borrow enough, the client needed around 4.5 times their income.
• Their credit file had nothing negative on it, but not much positive either. A thin credit footprint gives lenders less evidence of how someone manages credit, which can count against an application at high loan-to-value.

How we approached it

Dave approached a number of lenders to find one that would accept the full combination of self-employed income, a 95% loan and a limited credit history. Once a lender agreed a decision in principle, the full application went in.

The lender assessed the client on the average of their last two years’ income. Because that income had risen slightly each year, the average still supported the loan.

The outcome

£199,500 at 95% loan-to-value on a two-year fixed rate. The mortgage offer arrived eight days after the application was submitted, and the purchase completed in July 2026.

Dave reports that the client was relieved when it all went through.

What this case shows

• A thin credit file is not the same as bad credit. It can narrow your options at high loan-to-value, so it is worth building your history before you apply, for example by registering on the electoral roll and using a credit card responsibly.
• Lenders treat self-employed income differently. This lender used a two-year average; others will use your latest year if your income has risen. Choosing the right one can change how much you can borrow.
• Speed comes from preparation. Having your tax calculations and tax year overviews ready helps a lender make a decision quickly.

Is this you?

With a small deposit you have less equity if house prices fall, so it is important the mortgage is affordable now and in the future. If you are self-employed and saving for your first home, our self-employed mortgage calculator gives you an estimate with no credit check.

About this case study

Written up from the case notes of Dave Marcer, Mortgage Adviser at our Needham Market office. For more on this type of mortgage, read our guide to self-employed mortgages.

This case study is based on a real client and is shared with their permission. Names and identifying details have been removed. Every case is different, and what is possible for you will depend on your circumstances. Lender criteria change over time.

Your home may be repossessed if you do not keep up repayments on your mortgage.