Getting a buy to let mortgage can be a great investment opportunity, but if you’re self employed, you may wonder whether lenders will approve your application.
While being self employed can add extra steps to the process, many lenders are open to working with business owners, freelancers, and contractors, as long as you can prove a stable income.
If you’re looking to invest in property, understanding how self employment affects your mortgage options is essential.
In this guide, we’ll explore what lenders look for, how to improve your chances of approval, and the steps involved in securing a buy to let mortgage in Bristol when you’re self employed.
How does a buy to let mortgage work if you’re self employed in Bristol?
A buy to let mortgage in Bristol works similarly for self employed applicants as it does for those in regular employment.
The key difference is how lenders assess your income. Instead of payslips, self employed applicants must provide financial records, such as tax returns or business accounts, to demonstrate affordability.
Most lenders require a deposit of at least 25%, and the loan is typically based on the projected rental income of the property rather than personal earnings alone.
While the process may involve more paperwork, securing a buy to let mortgage as a self employed applicant is entirely possible with the right preparation.
Is it harder to get a buy to let mortgage if I’m self employed in Bristol?
Self employed applicants may face additional scrutiny when applying for a buy to let mortgage in Bristol, but that doesn’t mean it’s significantly harder.
Lenders want reassurance that you have a reliable income, so providing well-documented earnings history is essential.
While some high street lenders have strict criteria, many specialist lenders cater specifically to self employed borrowers.
Working with a mortgage broker in Bristol can help you find lenders that are more flexible with self employed applicants.
What proof of income do I need for a self employed buy to let mortgage in Bristol?
When applying for a buy to let mortgage in Bristol as a self employed applicant, lenders will typically ask for two to three years’ worth of financial records to assess your income stability.
This usually includes SA302 tax calculations and tax year overviews from HMRC, recent bank statements, and business accounts if you operate as a limited company.
Some lenders may also ask for a projection from an accountant if your income fluctuates. Having these documents ready can streamline the application process and improve your chances of approval.
How many years of accounts do I need for a buy to let mortgage in Bristol?
Most lenders require at least two years’ worth of accounts when applying for a buy to let mortgage in Bristol, although some may consider applicants with just one year’s trading history.
The more financial records you can provide, the stronger your application will be. If you have limited accounts, working with a mortgage advisor in Bristol can help you find lenders willing to accept shorter trading periods or alternative income verification methods.
Do self employed applicants need a higher deposit for buy to let in Bristol?
In most cases, the deposit requirements for a buy to let mortgage in Bristol remain the same whether you are self employed or not.
Typically, lenders require a minimum deposit of 25%, though some may offer deals with a 20% deposit. However, if you have a limited financial history or a less predictable income, some lenders may request a larger deposit to reduce their lending risk.
Having a higher deposit can also help secure more competitive interest rates.
How do lenders assess affordability for self employed buy to let mortgages in Bristol?
For a buy to let mortgage in Bristol, lenders primarily assess affordability based on the expected rental income of the property rather than personal income.
However, if you are self employed in Bristol, you will still need to prove financial stability. Most lenders require rental income to cover 125–145% of the mortgage repayments, depending on the tax band you fall into.
Some lenders may also conduct a background financial check to ensure you can cover repayments during void periods.
Demonstrating strong financial records and rental yield projections can help improve your chances of securing a mortgage.
Can I get a buy to let mortgage if I’m a sole trader, limited company director or freelancer?
Yes, self employed individuals of all types, including sole traders, limited company directors and freelancers, can apply for a buy to let mortgage in Bristol.
The main difference lies in how lenders assess income. Sole traders usually need to provide SA302 tax calculations and tax year overviews, while limited company directors may be assessed on their salary and dividends or retained profits within the business.
Freelancers will need to demonstrate consistent income over time. A mortgage broker in Bristol like us can help you find lenders that suit your specific employment structure.
Date Last Edited: February 24, 2025
