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Santander Self-Employed Mortgage Guide

Securing a mortgage as a self-employed individual requires an advisor who understands your unique financial situation. Santanders mortgage solutions are designed for the self-employed professional. With tailored guidance from our advisors, the path to homeownership is simplified and achievable.
In this guide
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    Why Santander for Your Self-Employed Mortgage?

    Santander is renowned for its commitment to providing tailored mortgage solutions for self-employed applicants. Our partnership with Santander opens the door to competitive mortgage options that cater to your individual needs.

    A Mortgage Lender You Can Trust

    With Santander’s strong reputation and deep understanding of the self-employed sector, you can be confident in their ability to support your mortgage needs. We’re here to facilitate a seamless application and approval process.

    Transparent and Supportive Mortgage Process

    Santander’s mortgage process is designed to be clear and supportive, especially for self-employed applicants.

    Our role is to guide you through the necessary steps and paperwork, simplifying the process so you can focus on your business.

    Being self-employed is not a barrier to securing financing with the right guidance. We’re here to ensure the mortgage process is straightforward and accessible.

    Understanding Self-Employed Mortgages

    Self-employed mortgages are similar to standard mortgages but require some additional documentation. Our advisors are equipped to guide you through each step, ensuring your documentation is complete and liaising with Santander on your behalf.

    Am I Self-Employed?

    When getting a mortgage with Santander you are considered self-employed if you:

    • Operate your own business or work independently.
    • Freelance for various companies.
    • Manage the day-to-day operations of a business you own.
    • Work under contract for a client, often for an extended period.
    • Your business is not currently trading or has been re-opened for less than three months.
    • You have taken a Self-Employment Income Support Scheme (SEISS) grant.
    • Your limited company has received a Job Retention Scheme (JRS) grant.

    Please note that these criteria are subject to change and it’s always best to check with a qualified mortgage advisor directly for the most up-to-date information.

    Eligibility and Documentation for Self-Employed Mortgages

    If you are self-employed and are looking to secure a mortgage with Santander, you’ll need:

    Standard Documentation

    • Identification (e.g., passport or driving license)
    • Proof of residence
    • Banking details

    Specific Documentation for Self-Employed Income

    • Two to three years of self-employed income financial statements
    • Self-assessment tax forms (e.g. SA302) + supporting Tax Year Overviews (TYOs) for the same period. These can be requested from HMRC or an online HMRC account.
    • Evidence of earnings or dividends
    • Upcoming work or contract proofs
    • Accounts certified by a chartered accountant

    Additional information

    • Santander considers you self-employed if you have a 20% or greater shareholding in a company. If your shareholding is less than 20%, you’re treated as employed. Santander requires bank statements showing the latest three months’ salary credits for those involved in a family business.
    • Please note that Santander requires at least two years of self-employment or business ownership to consider an application. The bank will now take an average of the last two years’ self-employed income or the most recent year if this is lower. For existing borrowers moving home, Santander said its underwriters may be able to use a more individualised assessment.
    • A self-employed applicant will fall under this definition if their business is not trading or has been re-opened for less than three months. It will also apply if they have taken a Self-Employment Income Support Scheme (SEISS) grant or if a limited company has received a Job Retention Scheme (JRS) grant.
    • Santander is also changing its definition of a Covid-19 impacted self-employed applicant to now only capture details of any outstanding coronavirus business interruption loan.

    Loan to Value and Deposit Requirements

    Navigating the financial aspects of a mortgage is crucial, and understanding the loan-to-value (LTV) and deposit requirements can help set realistic expectations for any mortgage applications.

    Loan to Value (LTV) Limit

    As of May 26, 2022, Santander increased their maximum LTV for self-employed people from 75% to 90%. However, this loan to value limited does not apply to existing borrowers who are moving home.

    Deposit Requirement

    New self-employed customers are offered mortgages covering up to 60% of a property’s value, necessitating a 40% deposit for most first-time buyers and home movers.

    Individual Assessment for Home Movers

    Existing borrowers moving home may receive a more personalised assessment from Santander’s underwriters.

    Special Considerations for Small Business Owners

    For small business owners, Santander takes into account:

    • Operating costs and business premises expenses.
    • The value of business equipment and inventory.
    • Outstanding business debts and liabilities.
    • Necessary business insurance coverage.

      For existing Santander mortgage customers planning to move home, underwriters may take a more individual assessment.

    Understanding Interest Rates and Affordability at Santander UK

    Interest rates are an integral component of any mortgage agreement. Santander mortgage rates are carefully tailored to fit individual circumstances. Factors such as loan-to-value ratio and fixed rate periods have a major influence in setting these rates.

    Santander UK conducts an in-depth affordability assessment that carefully considers your regular income, monthly outgoings, and any financial commitments. Their mortgage agreement is then tailored accordingly and designed in such a way as to be manageable and sustainable for you.

    Explore Joint Mortgage Options with Your Self-Employed Partner

    Opting for a joint mortgage can offer several distinct advantages. Dividing financial responsibilities among two individuals can lighten their burden, while pooled incomes could yield larger loan amounts and expand your range of potential home purchases.

    However, for partners who are self-employed, the mortgage application process can seem more complex and intimidating. The team at YesCanDo Money is committed to supporting you through it. We understand the unique financial situations of self-employed individuals and can offer the support and advice necessary for you to successfully navigate a joint mortgage application.

    Grant Mortgage Adviser

    Case Study: A CIS Contractor's Homeownership Success

    Grant (YesCanDo Mortgage & Protection Advisor

    How We Enhance Your Mortgage Application

    Navigating the mortgage application process can be daunting for those working solo; our advisors are here to guide them every step of the way.

    1) Expert Fee-Free Guidance

    Our team specialises in helping self-employed individuals navigate the mortgage maze with ease, to ensure an effortless mortgage application process. What’s more, is that we are fee-free meaning you will not pay for our expert advice and support.

    2) Customised Solutions

    Self-employed individuals come with an array of income situations. At YesCanDo Money we don’t believe in one size fits all. We take to in understanding your individual needs allows us to tailor solutions specifically tailored for you, increasing the odds of approval.

    3) Ongoing Support

    From start to finish of your application process, we are with you every step of the way, making sure all queries are attended to efficiently. We also work to chase lenders and solicitors to speed up your mortgage process to an efficient level.

    FAQs about Self-Employed Mortgages

    Self-employed individuals can qualify for mortgage loans. Usually, two years' of self employed income history from their self-employment must be provided through tax returns as income evidence.

    It can be more complex for the self-employed to secure a mortgage because of the need to demonstrate a reliable income. But with YesCanDo's expert, fee-free guidance, self-employed borrowers receive the necessary support to streamline this process and enhance their chances of approval.

    Yes, Santander provides mortgages to self-employed individuals. However, they typically require the borrower to have been self-employed or owned their business for at least two years and prove the income evidence requirements.

    Santander Bank announced on May 26, 2022, they have increased their maximum LTV for self-employed people from 75% to 90%.

    Numerous major UK mortgage lenders, such as HSBC, Santander, Nationwide Building Society and Natwest are offering mortgages to self-employed individuals.

    The best mortgage for self-employed individuals depends on their specific needs and circumstances. Some lenders offer bank statement loans, which allow applicants people to provide business bank statements instead of tax returns to prove their self employed income.

    The difficulty of getting a mortgage with Santander depends on the individual’s circumstances. Santander is roughly as strict as other high street banks and building societies with their mortgage lending criteria.

    Self-employed individuals typically need to provide two or more years of certified accounts, SA302 forms or a tax year overview (from HMRC) for the past two or three years, evidence of upcoming contracts (if a contractor), and income evidence of dividend payments or retained profits (if a company director).

    Fee Free Mortgage Advisor Team

    Fee Free Mortgage Advisors

    FREE dedicated support throughout, we have full-market access to the best mortgage rates & deals. We do everything for you, for free! Call us, WhatsApp us, or fill in our contact form and let us know what the best time is for us to call you. We will get one of our mortgage advisors will be in touch to talk through your situation and available options.
    Grant Humphries (CeMAP)
    Grant Humphries (CeMAP)

    Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding mortgage lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape

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