First-time buyer mortgages for the self-employed
Buying your first home as a sole trader, director, contractor or freelancer. The case is genuinely placeable, on the right lender, with the right preparation.
First-time buyer cases where the applicant is self-employed are common. Most are placeable on the standard FTB lender pool, with the income side run on whichever self-employed method produces the highest borrowing. The 5 percent and 10 percent deposit routes are open to self-employed first-time buyers, and so are first-time buyer Stamp Duty Land Tax (SDLT) reliefs.
Who this is for
- You have never owned a home and you are self-employed.
- You have a 5 to 25 percent deposit and want to know which lenders will look.
- You are buying jointly with an employed partner and want both incomes counted.
- You want to understand whether the FTB SDLT relief still applies to your case.
First-time buyer status is independent of how you earn your money. The first-time buyer Stamp Duty Land Tax (SDLT) relief and the first-time buyer lender products both apply equally to self-employed applicants. The mortgage application then runs your self-employed income through whichever lender method produces the strongest result.
Deposit options as a self-employed first-time buyer
5 percent deposit gets you in. 10 percent unlocks better rates. 15 percent and up opens the broadest part of the market. The same FTB schemes (Track Record, Family Springboard, Deposit Unlock on new build) that apply to employed applicants apply to you. The only constraint is that the lender side of the AIP runs on a self-employed assessment.
Stamp Duty Land Tax for self-employed FTBs
First-time buyer SDLT relief: no Stamp Duty up to a property price of £300,000, then 5 percent on the slice between £300,001 and £500,000, with no relief above £500,000. The relief is identical for self-employed and employed buyers. We model the SDLT before you offer.
Worked example, sole trader buying a first home
Sole trader, two SA302s with net profit £42,000 then £52,000, latest tax year overview clean. 10 percent deposit on a £300,000 first home. A latest-year specialist lender treats income as £52,000, gives an AIP at 4.5x = £234,000, and the case proceeds. SDLT bill: zero (under £300,000 FTB relief). Total cash needed at completion: £30,000 deposit plus around £1,500 to £2,500 of legal and survey fees.
Joint cases with one employed and one self-employed applicant
Lenders happily combine the two incomes. The employed side runs on payslip evidence. The self-employed side runs on SA302 or accounts evidence. The borrowing figure is the sum of the two assessments, which often produces a stronger AIP than either could alone.
Common pitfalls
Heavy expense claims that suppressed last year's SA302 net profit. Drawing too aggressively from the limited company so the dividend method shows a thin income. Buying a property over £500,000 and losing the FTB SDLT relief entirely. Choosing a high-street lender on the standard FTB product when a specialist self-employed FTB route would have produced more borrowing.
How Major Money Matters helps
Specific things we do for this case type. No generic platitudes.
Combine FTB and self-employed routes
We pick a lender that takes both your FTB status and your self-employed income method correctly.
Model SDLT and FTB relief
The £300,000 and £500,000 thresholds. We flag where you sit before you offer.
Joint cases, one employed, one self-employed
We package both income types so the underwriter sees the full picture cleanly.
Use FTB schemes where they apply
Track Record, Family Springboard, Deposit Unlock on new build. We assess each route on numbers.
Frequently asked questions
Can I really buy a first home as a self-employed person with a 5 percent deposit?
Yes. The 5 percent FTB lender pool is mostly open to self-employed applicants, although it narrows slightly. 10 percent opens noticeably more lenders. 15 percent puts you on the same lender choice as an employed FTB.
Do I still get the first-time buyer Stamp Duty relief if I am self-employed?
Yes. FTB SDLT relief is based on whether you have ever owned a home, not on how you earn your income. The thresholds (zero up to £300,000, 5 percent on the £300,001 to £500,000 slice, no relief above £500,000) apply equally.
Can I use Track Record or Deposit Unlock as a self-employed FTB?
Yes, in many cases. Track Record uses your rental payment history regardless of employment status. Deposit Unlock is housebuilder-backed and runs on the lender's standard FTB product. We assess each on the numbers.
My partner is employed and I am self-employed. How do lenders handle that?
They combine both incomes. The employed side is assessed on payslip evidence, the self-employed side on SA302 or accounts evidence, and the borrowing figure is the sum. We package both for the underwriter.
Will the rate be higher than for an employed FTB?
Often the same on a clean two-year-accounts case. Slightly higher on one-year-accounts or specialist routes. The difference is usually 0 to 0.4 percentage points.
Related
Closest siblings to this scenario. Worth a read.
Mortgages for sole traders
Net profit on the SA302. The right lender depends on trading history and profit trend.
Read moreMortgages for limited company directors
Salary plus dividends, or salary plus share of retained profit. Lender choice is everything.
Read moreHow self-employed income is calculated
The technical breakdown of the methods lenders use, and why the same person gets different borrowing answers.
Read moreWhat our clients say
Real reviews from clients across Romford and Essex, verified on Google.
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Talk to a self-employed first-time buyer specialist
A quick 15-minute call tells you what your deposit and your self-employed income produce on the right lender.
Named adviser, wherever possible. No call centre. We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm, weekend appointments on request.