A guide to mortgages for sole traders 

A guide to mortgages for sole traders 

Obtaining a mortgage as a sole trader isn’t always an easy task and can sometimes come with its bumps in the road. But this isn’t always the case, the market is full of lenders that specialise in a variety of different mortgages. 

To help with any questions, we’ve put together this brief guide to mortgages for sole traders: 

What documents will I need? 

As a sole trader, you’ll need these documents to successfully secure the mortgage you are after: 

  1. Your most recent tax calculations (SA302) and/or returns 
  1. Your most recent tax year overviews, which confirm that your taxes are up-to-date 
  1. Proof of address 
  1. Proof of identification – passport/driving licence  
  1. Personal bank statements 
  1. Business bank statements 
  1. Credit report 

Will the interest rate be higher if I am a sole trader? 

The mortgage rates available for sole traders don’t necessarily differ, but are dependent on your own personal circumstances. Depending on your circumstances, there may be reasons why you’ll have to secure a higher interest rate. 

For example; if you have bad credit or a low deposit amount then your interest rate is likely to be higher. However, this is true of all mortgage applicants, not just sole traders. 

How long do you need to be a sole trader before getting a mortgage? 

Usually, the minimum is 12 months. For the lender, it’s vital that they establish your annual income to assess affordability so they will require a proven document to show the trading history. 

Applying with the correct lender is the crucial part to any mortgage being secured successfully, which is where Mortgagez can help you. Our team of fully qualified mortgage advisers is on hand to help you every step of the way in obtaining a new mortgage, and our service won’t cost you a penny when you go via our online portal.  

Visit our website today and obtain a quick quote with our online mortgage rate tool to see how much you could save on your next mortgage. 

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PLEASE NOTE: Article written 23rd February 2022. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. * 


Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.  

Article written: February 2022                                                                                                            230222 MZ000247 

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