Self Employed Mortgage Rates

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Self Employed Mortgage Rates

  • Common Sense’ Underwriting
  • 95% Mortgages Available
  • Only 1 Year Accounts
  • Required 5 * service
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Author: Carl Shave - CEO and co-founder
Last updated: July 8th, 2022

Best mortgage rates for the self employed

For anyone looking for a mortgage, one of the most important aspects of this will be the interest rate being charged. The market is awash with different types of interest rates such as fixed, discounted, trackers to name a few and within these types there is a multitude of differently priced options. It’s no wonder therefore that this can seem the most complex and daunting area that people are concerned about during their quest.

If purely finding a mortgage rate can appear complicated, when you add to the mix of being one of the many self employed who need to arrange a mortgage it can start to seem difficult to even know where to start.

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Finding the best mortgage rate if you are self employed really depends on what your current situation is, your future plans and what features and benefits you require from your mortgage.  What is worth remembering is that the lowest rate is not necessarily the best as this may have larger fees attached to it and as such could ultimately cost you more. Look here to check the latest mortgage rates.


Some things to consider are:

How much are you borrowing – ensure you cost out the overall cost of the scheme based on this amount.

The term of your scheme – remember to cost out the value of the product or rate depending on what term this is provided over ie is it a 2 year deal or a 5 year deal etc.

Any additional fees – what other fees may be payable other than that for the rate itself ie does the lender charge a survey or valuation fee.

Flexibility – do you want to be able to pay extra off your mortgage throughout the period of the rate being applied for, if so, how much and when.  Most allow up to 10% of the balance to be paid off each year without penalty but this may not be suitable for you.  Also, would you like it even more flexible where anything you’ve paid off can be redrawn again at any time, typically referred to as an offset mortgage.

Future plans – What plans do you have in the future ie home improvements, moving house, and could these happen during the term of the product you are considering.  Most mortgage products are portable ie can be transferred to a new property if you move however not all are, and even those that can be there is no guarantee that your circumstances at that time will meet the lenders criteria or that the property will meet their suitable security remit.  If it can not be ported you could find yourself having to pay a penalty.

A mortgage for a self employed person is no different to that of someone who may be employed and on PAYE.  The main difference is how they are assessed for the income being used.  Therefore, regardless of being self employed the rates available to you should be no different to that offered to anyone else.  There could be exceptions to this rule, perhaps whereby your situation is deemed as a complex case and as such a more specialist self employed lender may need to be used however, even via this route the mortgage rate you should be able to obtain should not be too dissimilar.

With what should be plenty of choice available to you, depending on your individual circumstances, knowing where to go to make the arrangements will be one of the first things to consider.  Possible options are:

Use a mortgage broker – if the broker specialises in self employed mortgages this could be an even better advantage but using any broker should offer you a good source of knowledge in a one stop shop

Direct at a bank – speaking to a bank adviser will still give you the personal touch and advice but do remember they can only advise you on their products.

Online – this will perhaps be the most convenient option as you can deal with your application at a time that suits you however all will now be down to you to sort out with limited support available.

A question that crops up many times is not in relation to how to arrange a mortgage when self employed but more in regard to what happens if you go self employed during your mortgage scheme.  For example, you may have arranged a fixed rate that is due to expire in 12 months time and wish to go self employed.  One of your concerns here will likely be what choices you will have in regard to arranging a new mortgage when you will not have the typical minimum 2 years self employed history.  There is never an easy answer to this one for what is best however the general consensus would be that the hopeful benefits of you going self employed will outweigh any restrictions you may have when your mortgage rate needs to be reviewed.

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