Self-Employed Buy to Let

Applying for a Buy to Let (BTL) mortgage when you are self-employed can imply some obstacles that make the process a little more challenging than if you were part of the PAYE system. With the help of a specialised broker, you can find the lenders who have experience in such situations and can help you streamline the process of obtaining a BTL mortgage.

There Is Not a Specific Mortgage Product for Self-Employed people

There is no financial product specifically designed for self-employed professionals. The only difference is in how you prove your income. And, often, this depends on what type of company you are running. 

However, by placing a sizeable deposit, applying to the right lender, keeping your finances in order, and maintaining a positive credit score, you are more likely to succeed at your first application.

Can I Get a BTL Mortgage if I Am Self Employed?

While it can be challenging without the right guidance, self-employed professionals can apply for a BTL. During the application, your income won’t be so much of an influential factor, and it is even less so if you have experience in being a landlord. 

Indeed, once you are aware of the risks and costs of letting your property, the lender will see you as a low-risk investment!

How Much Can I Borrow for a BTL Mortgage if I Am Self Employed?

When borrowing for a BTL mortgage, the funds you can obtain won’t depend so much from your personal income. However, the sum you can borrow will depend on how much you can rent the property for. 

Indeed, many lenders will require the rent you perceive from the property to cover around 125 to 145% of the agreed monthly repayments of the mortgage. To prove this, you will need to provide a letter certified by an ARLA letting agent that shows the rental potential of the property.

Additionally, to increase your chances to obtain the mortgage, you might need to earn more than £25,000.

Can I Convert My Mortgage to a Buy to Let One if I Am Self-Employed?

Suppose you already have a mortgage, but you prefer to convert it into a BTL. In that case, you can do so only if the new agreement meets the requirements of eligibility and affordability set by the lender. When deciding on this option, you should keep in mind that it counts as a remortgage. 

How Will Your Self-Employed Application Be Assessed?

Above we have seen that the main difference between a BTL for full-time employees and self-employed professionals is in the fact that you will have to prove your income differently. The way the lender will assess this depends on the structure of your company and the documents you can provide

Sole Trader

If you are a sole trader and therefore operating alone, all of the profits of your business or company will go to you. So, your lender will require you to show the SA302 form you can request from HMRC, which shows your tax payments and incomes. 


If you are in a partnership, the lender will consider what share of the business is yours. Then, they will check the incomes you have perceived on that share.

Ltd Company

A self-employed professional who operates as the director of a limited company will need to show the income perceived, as well as dividends and other income sources. Depending on the lender, retained profits might or might not count in the assessment.

How Can a Specialised Mortgage Broker Help?

When applying for a BTL mortgage, some obstacles can get in the way of self-employed professionals. 

The way you present your income can influence the lender’s choice. So, it is recommendable to get in touch with a specialised self-employed BTL mortgage broker who can streamline the process. 

This choice will free you of jargon, appointments, and mistakes. Additionally, your broker can get you in touch with lenders who already have experience in the field and understand the specific needs of self-employed individuals. 

Your home may be repossessed if you do not keep up repayments on your mortgage.