The latest data from the Office for National Statistics (ONS) shows that there were 4.568 million self-employed people in the UK between January and March 2026. This was an increase from 4.378 million in Q4 2025 and 4.396 million in Q1 2025, equating to growth of around 190,000 over the quarter and 172,000 compared with the same period a year earlier.
These figures are reflected in mortgage search activity, such as Twenty7tec’s INSIGHT platform recording just over 86,000 searches for self-employed applicants per month on average so far in 2026.
Despite these significant numbers, for all too long, the self-employed population have had to jump through too many hoops to justify their ability to repay mortgages and with their numbers gradually growing, surely in 2026 we can do better?
The problem is not always affordability
For many self-employed clients, the issue is not that they cannot afford the loan, it’s that their income does not fit the standard models applied by lenders.
An employed client can often be assessed on payslips and a P60. A self-employed client may need SA302s, tax year overviews, accounts, business bank statements and accountant comments to show the same thing, that they earn enough, and the income is sound.
The frustration for brokers is that a client with a strong business, good payment record and clear surplus income can still be told no because the paperwork tells a more complicated story. A dip in one trading year, a recent move from sole trader to limited company, or a change in how the client takes income can all make a good case look weaker than it is.
The latest year can tell the real story
One of the biggest issues is the habit of averaging income over two or three years. Of course, there are times when that makes sense. It can smooth out risk and give a lender comfort that the income is steady.
But there are also many cases where it can provide the ‘wrong’ answer.
Historically, a business may have had a poor year due to one-off costs, illness, late invoices, new stock, higher tax planning costs or a short-term fall in demand. However, the latest year’s results may show the client has moved on from those challenges. That’s why using a blunt average can hold the client back. even where the most recent accounts show a clear and stable income.
That’s why we will always consider the latest year’s figures. We do not automatically average out the figures if that does not reflect the client’s true position. What matters is whether the income makes sense, can be evidenced and looks likely to continue.
Changing structure should not mean starting again
Another common issue is a change in business status. A sole trader may become a limited company for tax or growth reasons, while doing the same work, for the same type of client, in the same industry.
To some lenders, that can make the case look complicated. To us, it does not always need to be treated that way.
Where the client has made such a move but still operating in the same line of work, we can look at the previous SA302 and recent business bank statements to show consistency in income. We can also use confirmation from an accountant where it helps explain the case.
That can be vital for brokers with clients who have a good track record, but do not yet have a full year of limited company accounts.
Company directors need a fair view
Company directors can face another problem as the income they draw is often only part of the story.
Some take a salary and dividends. Some retain profit in the business for tax, cash flow or growth reasons. Others own a share of the business and may have a sound claim to a share of net profit, even if they do not take it all as personal income.
A lender that only looks at salary and dividends may miss the full strength of the case.
For us, company directors can be assessed using salary and dividends, salary and net profit, or their share of net profit, where the figures support it. That gives brokers more ways to place cases that are affordable, but not always simple.
Self-employed does not mean unmortgageable
Self-employed borrowers should not have to prove their worth twice because their income cannot be obtained from a payslip.
The best lenders in this space are looking to understand the case properly by asking why the numbers have changed, what evidence sits behind them and whether the client can afford the loan in the real world.
Our message to brokers is simple, provide the detail early, as a strong self-employed case is one where all the information is supplied up front.
We are not looking for the neatest case, we are looking for a case that makes sense. For many self-employed clients, that can be the difference between being declined and getting the mortgage they want and can afford.
