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Yes — most lenders will consider self-employed applicants who have at least two years of trading history, though a small number accept one year. The key difference from employed applicants is how income is assessed. Sole traders are assessed on net profit; limited company directors are typically assessed on salary plus dividends, or salary plus net profit, depending on the lender. High-street banks are often the most restrictive; challenger and specialist lenders tend to be far more flexible. A whole-of-market broker can identify which lenders are actively writing self-employed cases at the LTV and loan size you need. We regularly place self-employed mortgages for clients who have been turned down by their high-street bank.

A previous rejection does not permanently prevent you from getting a mortgage, but it is important to understand why you were declined before applying again. Common reasons include: income assessed too conservatively, non-standard property type, adverse credit, or applying to the wrong lender for your profile. Each lender applies its own criteria and a rejection by one does not mean every lender will decline. However, multiple applications in quick succession leave hard credit searches on your file, which can compound the problem. The right approach is to use a whole-of-market broker to identify the most appropriate lender before any application is submitted. We offer a no-obligation initial conversation specifically to assess your position before anything touches your credit record.

Yes. Contractors and freelancers are well-served by several specialist and challenger lenders who assess income differently from the standard employed route. For contractors on a day rate with an active contract, many lenders annualise the day rate (typically day rate × 5 days × 46 weeks) rather than relying on a P60 or tax returns. This often produces a significantly higher assessable income figure than the employed route would. The requirement is usually a current, active contract with no more than a six-week gap in contracting history. IT, finance, legal, and engineering contractors benefit most from this treatment. For portfolio freelancers without a single contract, SA302 income averaging over two years is more typical.

It depends on the type, severity, and age of the credit issue. Minor issues — a single missed payment over three years ago, or a default under £500 that has since been satisfied — may be acceptable to mainstream lenders. More significant adverse credit — a County Court Judgment (CCJ), a debt management plan, or a recent mortgage arrear — will typically require a specialist or adverse credit lender. These lenders accept higher risk in exchange for a higher interest rate and usually require a larger deposit (typically 15–25% minimum). The good news is that credit issues become less impactful over time: a CCJ registered five years ago is treated very differently from one registered six months ago. We work with lenders across the full credit spectrum and can advise on realistic options for your specific profile.

Yes, though your options are narrower. Most high-street lenders require you to have passed your probation period (typically three to six months) before they will consider an application. A smaller number of lenders will accept day-one employment with no probation requirement, provided you have been continuously employed for at least six months prior and are not changing sector. If you have a prior track record in the same field and can evidence the new contract, this is often workable. Starting a completely new career simultaneously with a mortgage application is more difficult. If you are due to start a new role within the next three months, in many cases it is worth timing the application to coincide with passing probation.

Yes — many lenders accept certain state benefits as part of a combined income assessment alongside employment or self-employment income. Benefits that are commonly accepted include: Child Benefit, Working Tax Credit, Child Tax Credit, Universal Credit (working element), Disability Living Allowance, and Personal Independence Payments (PIP). Benefits that are less commonly accepted as standalone income include housing benefit and carer’s allowance, though specialist lenders exist for these situations. The key requirement is that the benefit is expected to continue for the foreseeable future. Some lenders will require evidence that a benefit is in payment for a minimum period (typically three months). We can identify lenders whose criteria accommodate your specific benefit income.

The maximum borrowing for a self-employed applicant is calculated in the same way as for an employed applicant — typically 4.5× annual income, with some lenders stretching to 5× or 5.5× for higher earners or certain professions — but the figure used as ‘annual income’ varies by lender. For sole traders, most lenders use the net profit figure from your tax returns (SA302), averaged over two years. For limited company directors, income can be assessed as salary plus dividends, salary plus share of net profit, or in some cases total net profit. A director drawing £30k salary and £100k dividends from a company generating £180k net profit could see assessable income range from £130k (salary + dividends) to £180k (net profit) depending on the lender — a meaningful difference on a 4.5× multiple.

Lenders typically lend 4–4.5× gross annual salary for a sole applicant. At the national average salary of £34,963, this produces a maximum of roughly £157k–£157k at 4.5× — challenging in London where average prices exceed £500k. However, for higher earners, some lenders will extend to 5× or even 5.5×. A single applicant earning £75,000 could borrow up to £412,500 at 5.5× with the right lender. Profession-specific affordability models also exist: certain lenders offer enhanced multiples to doctors, lawyers, accountants, and other regulated professionals on the basis that their income trajectory is predictable. Using a broker who knows which lenders apply enhanced multiples to your profession can materially increase your borrowing power.

A £50,000 deposit used on a 90% LTV product gives a maximum purchase price of £500,000, meaning the mortgage would be £450,000. Whether a lender will offer £450,000 depends on your income: at 4.5×, you would need a combined gross income of £100,000. At 5.5× (available to some high earners), the income requirement drops to £81,818. Alternatively, if affordability is comfortable but you want to reduce the LTV, a £50,000 deposit on a £400,000 property gives an 87.5% LTV, potentially unlocking better rates. Using a mortgage broker to compare the rate saving from a lower LTV against the purchase price flexibility of a higher LTV is a useful exercise before committing.

Student loan repayments in the UK are deducted via payslip for Plan 1, 2, and 5 borrowers, and this deduction reduces your net disposable income in lenders’ affordability calculations. The impact is typically equivalent to 9% of income above the relevant repayment threshold. For most borrowers the effect is modest — a £40,000 earner repays around £108/month on Plan 2, which might reduce maximum borrowing by £8,000–12,000 depending on the lender. A £60,000 earner repays around £288/month, reducing maximum borrowing by roughly £20,000–30,000. Plan 5 (post-2023 loans) has a lower threshold and longer repayment period, meaning higher ongoing deductions. If your loan is close to write-off (Plan 1: age 65 or 25 years post-graduation; Plan 2: 30 years), some lenders will disregard it entirely.

First-time buyers access the same affordability multiples as other buyers — typically 4–4.5× gross income, up to 5.5× with certain lenders. The key advantage for first-time buyers is access to higher LTV products (90–95%) with a smaller deposit, and eligibility for schemes such as the Mortgage Guarantee Scheme (which backs 95% LTV lending on properties up to £600,000). Stamp duty relief on the first £425,000 of a first property (for homes under £625,000) effectively adds several thousand pounds to your purchasing power compared to subsequent buyers. In London, where average first-time buyer prices exceed £450,000, getting a whole-of-market broker involved early — before you start viewing — lets you understand your ceiling accurately.

Commission and bonus income is treated inconsistently across lenders, which makes this one of the most broker-dependent scenarios. Lenders generally fall into three camps: (1) those that ignore variable pay entirely and lend only on base salary; (2) those that accept 50% of average commission or bonus income based on the last two years; (3) those that accept 100% of proven regular commission based on twelve months of payslips and an employer letter confirming it is a structural part of pay. In sectors where commission is the dominant component of compensation — financial services, recruitment, sales — using a lender in camp 1 can cut your effective income in half. Matching your income structure to the right lender’s policy is one of the highest-value things a broker can do in these cases.

The timeline from initial application to formal mortgage offer typically ranges from 5 to 28 days, depending on the lender and the complexity of the case. Simple applications to mainstream lenders — employed applicant, straightforward property, clean credit — can produce an offer in under two weeks. More complex applications involving self-employment, non-standard properties, or specialist lenders may take three to four weeks. The survey and legal work that follows the offer adds a further four to twelve weeks depending on the chain and conveyancer speed. To reduce delays: have your documents ready before applying (two years’ accounts, SA302, payslips, bank statements, ID), instruct a solicitor early, and chase the surveyor and conveyancer proactively. A broker who has an ongoing relationship with a lender’s BDM can also help prioritise complex cases.

A mortgage in principle (MIP) — also called an agreement in principle (AIP) or decision in principle (DIP) — is a conditional statement from a lender that they would be willing to lend a specified amount, subject to full application and valuation. It is not a guarantee of a mortgage offer. Most estate agents will ask to see an MIP before accepting an offer, as it demonstrates that you are a credible, finance-ready buyer. MIPs can be issued as a soft search (no impact on your credit score) or a hard search (leaves a footprint). We always use soft-search MIPs where possible. An MIP is typically valid for 60–90 days. If circumstances change — new job, large purchase on credit, new debt — you should tell your broker, as this may affect the formal application.

Broker fees vary significantly. Some brokers charge nothing to the client and are paid by the lender via a procuration fee (typically 0.35–0.45% of the loan). Others charge a flat client fee (typically £495–£1,500) on top of, or instead of, lender commission. A small number charge a percentage of the loan (typically 0.5–1%), which can become expensive on larger mortgages. My Local Mortgage Advisor charges a flat advice fee of £500 payable on completion — nothing is due if we do not secure you an offer. The question to ask any broker is: (1) are you whole-of-market or restricted to a panel?; (2) do you receive lender commission and, if so, will you disclose the amount?; (3) what is your fee structure? A whole-of-market broker who discloses all income is almost always better value than a tied advisor or comparison site, even when a fee is charged.

Yes. 95% LTV mortgages are available from several mainstream lenders and are backed by the government’s Mortgage Guarantee Scheme on properties priced up to £600,000. The trade-off is a higher interest rate compared to lower LTV products — typically 0.6–1.0 percentage points more than an equivalent 75% LTV deal — and a requirement for the property to be in good condition (new-build flats above certain storeys, ex-local-authority flats, and properties of non-standard construction are frequently excluded at 95% LTV). For a £400,000 property, a 5% deposit is £20,000 and the mortgage would be £380,000. Monthly payment on a 5.09% 5-year fix over 25 years would be approximately £2,228. Saving from 5% to 10% deposit reduces the rate but delays purchase by the saving period.

A declined application leaves a hard credit search on your file, which is visible to future lenders for 12 months — but it does not permanently prevent you from being approved elsewhere. The right first step is to understand precisely why the application was declined. Lenders are not obliged to give a detailed reason but should indicate whether it relates to credit, income, or the property. Once you know the reason, a broker can identify whether a different lender’s criteria would have produced a different result. In many cases a declined application is simply a case of wrong lender rather than an unsecurable position. It is important not to apply again immediately without this analysis, as multiple hard searches in a short period can further reduce your attractiveness to lenders.

Market timing on mortgage rates is notoriously unreliable — professional economists routinely get rate forecasts wrong by large margins. The more useful framework is: what is the cost of waiting versus locking in? If you are within six months of needing a mortgage, most brokers recommend securing a rate now via a lender that allows free rate switches if rates fall before completion (most lenders permit this within the reservation period). If you are more than six months out, you are exposed to market movement in either direction. The Bank of England base rate, which influences swap rates and therefore fixed mortgage pricing, is driven by inflation, employment data, and global bond markets — all of which are unpredictable. The practical advice: secure the best available rate for your profile today using a lender with a long reservation window and a free rate-switch policy, and let us monitor for improvements.