Mortgage Brokers for First Time Buyers

Sole Trader Mortgages

In this weeks Mortgage Blog, I provide an insight into obtaining a First Time Buyer Mortgage as a Sole Trader.

First Time Buyer Mortgages for Sole Traders

Alex Kerr – First Time Buyer Specialist

Maybe you are wondering what your mortgage options are as a Sole Trader ?

As a Sole Trader, your mortgage options are exactly the same! Alot of self employed people I speak with, believe initially that their mortgage options maybe different when compared to mortgage options as an employed person.

It is just the assessment that is different.

1 Years Accounts – You can obtain a mortgage with just 1 years trading. However rates and fees will be a little higher when compared with high street rates. Some main stream lenders may look at 1 years accounts, backed up with a projection, if they feel the business is sustainable. At the minute you will be looking at depositing a 10% deposit.

2 Years Accounts – This is where most mainsteam lenders will come into play. An average of your last 2 years net salary will be calculated for afordability in regards to how much you can borrow.


In regards to documentation required for a mortgage as a Sole Trader, the below will provide a list of doducments you will be required to provide for an application:

  • ID (Passport or driving license)
  • Address Verfication (Can be a bank statement, not a mobile phone bill, needs to be within the last 3 months)
  • Proof of income; SA302 or Tax Computation AND Tax Year Overview for the last 2 years
  • 3 months personal and business bank statements
  • Credit file

Borrowing Potential

The Mortgage Lender will take your net profit when assessing how much you can borrow. Generally speaking you can borrow between 4.5 – 5 times your income. But be carefull when borrowing over 4.5 tiomes your income as this does not leave much margin for error, suring your mortgage application.


Overall being self employed should not hinder you obtaining a mortgage. It is all about your document preperation. Rememer to use a business account for your transactions, make sure your tax documents are submitted on time and that you have the above documents prior to any mortgage application.

I hope you have found value from this blog, any quesions please comment below.

Good luck!

Speak soon

Alex Kerr

DD: 03333 44 68 69
First Time Buyer Specialist


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