Business owners and entrepreneurs may find it difficult to obtain a mortgage, and the reasons include their lack of a pay slip that could be put in opposition to their loan application. Different institutions make it mandatory to prove that you are employed before you are approved for a mortgage, but some of them realize the huge hidden potential among self employed and entrepreneurs.

If you are self-employed, you can still get a mortgage through these procedures. You can also find out more about independent mortgages here.

Mortgage for the self-employed

You are considered a self-employed worker if you own or operate a certain percentage of a business, in most cases from 20% to 25%. Self-employed people are required to prove their income before they can claim a mortgage. You can do this by declaring your business accounts or through an accounting reference, and this should be prepared by a certified accountant. You will share information with a register highlighting an income of at least three years, although some lenders will accept proof of income covering a year.

The lender will evaluate your potential using the profits you earned during the specified period and the trends highlighted that show your growth. This step is important because it helps determine if, in the coming years, you will be able to increase the amount stated to repay the loan.

It sometimes becomes difficult to establish how much you should get because a lot of companies do not pay a constant amount all the way through. The challenge is not always to determine if you should receive the loan, but to decide how much you deserve according to the fluctuating income that your business brings you.

Specialized Lenders

To make the mortgage process easier when you’re self-employed, you might consider working with specialized lenders who specialize in lending to self-employed individuals and entrepreneurs. These will easily understand your case and could help you get the loan faster.

Traditional mortgages may have some bottlenecks if you are self-employed because their service is designed primarily to serve those who are employed. However, specialized lenders are relatively expensive, so before opting for their service, check if there are traditional lenders who can offer you a good deal.

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How much can you borrow?

Lenders have abandoned the simple procedures that they used in the past to determine the amount to which you are eligible. They take into account a number of things, including your current expenses and income levels from a few years in the past to date. This helps them to assess the maximum amount you can get.

If you have regular contracts, the lender may have the confidence to lend you no problem, and do not forget that if you have debts, they will also influence the amount you will be allocated, so make sure you you reduce your debts before mortgage application.


Applying for a mortgage loan to a self-employed worker has certain difficulties, particularly because you do not have a regular pay stub to use to repay your loans. Lenders use several factors to determine what you can get, including the profits that your business has made in a specified period of time. You will have to prove your income and demonstrate that you are able to increase the required amount in the future.