Market Updates
UK PROPERTY MARKET TRENDS FOR 2025
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6 min read
December 20, 2025
Stay informed with the latest market insights and property value trends across the UK housing market.
WHY IS IT HARDER FOR SELF-EMPLOYED INDIVIDUALS?
Unlike salaried employees who can provide consistent payslips, self-employed applicants need to demonstrate income through tax returns, accounts, and business records. Lenders want to see:
- At least 2-3 years of trading history
- Consistent or growing income trends
- Clean credit history
- Proof of contract continuity (for contractors)
- Evidence of business sustainability
The challenge isn't impossible—it just requires more documentation and strategic planning. At getDough, we specialise in helping self-employed clients navigate these requirements and find lenders who understand entrepreneurial income structures.
KEY DOCUMENTS YOU'LL NEED
Preparation is everything when applying for a self-employed mortgage. Here's what most lenders will require:
ESSENTIAL DOCUMENTATION:
- SA302 forms or tax calculations for the last 2-3 years
- Business bank statements (typically 6-12 months)
- Proof of business ownership or partnership agreements
- Certified accounts prepared by a qualified accountant
- Personal bank statements showing deposit savings
- Proof of identity and address
Having these documents organised and ready can significantly speed up your application process and demonstrate professionalism to lenders.
DOCUMENT CHECKLIST BY BUSINESS TYPE
Different business structures require specific documentation. Here's a detailed breakdown:
Sole Traders
SA302 tax calculations for last 2-3 years
Tax year overviews from HMRC
- Can be downloaded directly from HMRC portal
- Should match your SA302 figures exactly
- Must show tax paid and outstanding balances
Business bank statements (6-12 months)
Know Your Audience
Company accounts (last 2-3 years)
Personal SA302 forms showing:
- Salary from company
- Dividend income received
- Any other income sources
Accountant certification letters
Contractors & Freelancers
Current contract details
Contract history documentation
- Start and end dates of previous contracts
- Day rates or project values
- Evidence of consistent work pipeline
Umbrella company statements (if applicable)
HOW LENDERS CALCULATE YOUR INCOME
This is where many self-employed applicants get confused. Lenders typically use one of these methods:
AVERAGE METHOD
- Takes the average of your last 2-3 years' net profit.
- Best for: Stable, consistent income
LATEST YEAR METHOD
- Uses only your most recent year's income.
- Best for: Growing businesses with increasing profits
Some specialist lenders also consider retained profits, dividends, and contract day rates for contractors. The key is finding a lender whose assessment method works in your favour—this is where getDough's expertise becomes invaluable.
TOP TIPS FOR IMPROVING YOUR CHANCES
BUILD A LARGER DEPOSIT
While 5-10% deposits are possible, having 15-20% significantly improves your options and interest rates. It demonstrates financial discipline and reduces lender risk.
MAINTAIN CLEAN ACCOUNTS
Work with a qualified accountant to ensure your accounts are professional, accurate, and filed on time. Lenders scrutinise self-employed accounts more carefully than payslips.
MINIMISE TAX EFFICIENCY RISKS
While minimising tax is smart business, be aware that lower declared profits mean lower mortgage affordability. Balance tax efficiency with mortgage needs, especially in the years before applying.
USE A SPECIALIST BROKER
Not all lenders understand self-employed income structures. A specialist broker like getDough has relationships with lenders who actively welcome self-employed applications and knows which criteria you'll meet.
SPECIAL CONSIDERATIONS FOR DIFFERENT BUSINESS STRUCTURES
SOLE TRADERS & PARTNERSHIPS
Your net profit after expenses is considered as your income. Lenders will review your SA302 forms and may ask for business bank statements to verify trading activity and cash flow patterns.
LIMITED COMPANY DIRECTORS
Your income is calculated from a combination of salary and dividends. Some lenders will also consider retained profits. You'll need to provide company accounts, often certified by an accountant, along with your personal SA302 forms.
CONTRACTORS
If you work through an umbrella company or on fixed-term contracts, some lenders will assess your contract day rate annualised, even if you haven't been contracting for 2-3 years. This can be particularly beneficial for IT contractors and consultants.
GETDOUGH SUCCESS STORY
"We worked with a freelance graphic designer who'd been in business for 18 months. Despite not meeting the typical 2-year requirement, we found a lender who valued her consistent contract pipeline and strong day rate. She secured a £300,000 mortgage for her first London flat."
— Elliot Davies, getDough Mortgage Specialist
COMMON MISTAKES TO AVOID
Applying Too Early
Wait until you have at least 1-2 full tax years filed. Premature applications can result in rejections that appear on your credit file.
Inconsistent Income Patterns
Wildly fluctuating profits can concern lenders. If your income varies significantly, be prepared to explain seasonal patterns or business cycles.
Poor Credit Management
Late payments on business credit cards or loans can affect your personal mortgage application. Keep business and personal credit in good standing.
Not Shopping Around
High street banks often have strict criteria for self-employed applicants. Specialist lenders and building societies may offer more flexible options.
HOW GETDOUGH CAN HELP
At getDough, we specialise in self-employed mortgages and understand the unique challenges entrepreneurs face. Our expertise includes:
- Access to specialist lenders who actively seek self-employed clients
- Expert guidance on income calculation and presentation
- Document preparation support to ensure your application is lender-ready
- Strategic advice on timing your application for maximum success
- Strategic advice on timing your application for maximum success
- Ongoing support from application through to completion
We've helped hundreds of self-employed individuals secure mortgages, from sole traders buying their first home to limited company directors expanding their property portfolios. Our success rate speaks for itself—we get you the Dough you need.
READY TO START YOUR MORTGAGE JOURNEY?
Book a free consultation with one of our self-employed mortgage specialists today. We'll review your situation and provide clear, actionable advice on your best path to property ownership.
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