Self-Employed Mortgages and COVID-19


Gary Oxborough is Practice Principal at Barlow Irvin Financial Services. As our mortgage expert, he explains why it is becoming much more difficult to get a mortgage due to COVID-19 but getting expert mortgage advice will help.

You may have seen in the press that it is becoming much more difficult to get a mortgage due to COVID-19 and its effect on the economy. One group of people that this has really affected is the self-employed (including company directors). Lenders are very concerned about the effect of COVID-19 on businesses and this is being reflected in the questions they are asking on applications for mortgages. If you are self-employed, your mortgage is normally based on your income over the last 2-3 years, as shown on your tax return.

However, at the moment, lenders are also asking for business bank statements covering the last three months and also details of any government help a business has had recently, such as a “Bounce Back” Loan. There are even some lenders who are not accepting applications from certain industries, such as hospitality or entertainment who have been seriously affected by recent events. One of the anomalies of this system is that an employee of your business can submit an application and only have to provide payslips as proof of income. Even though their employer may be struggling in the background and they are at risk of losing their job, usually before a business owner would close the business and put themselves out of work. It’s just unfortunate that lenders have to work this way.

If you are self-employed and your business hasn’t been affected by the lockdown, then you should still be fine, but be prepared to still be asked for the bank statements. It is certainly a good idea to make sure everything is running smoothly through your bank account before thinking about submitting a mortgage application.

As always, using an experienced mortgage broker will certainly improve your chances of being approved. We are able to look through your documentation before submitting the application and ensuring it is submitted to the most appropriate lender in the best way possible to ensure that your application is approved.

Time to Talk?

Get in touch with Gary Oxborough to talk about ways he can help you. Call him on 01204 304 814 or email

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

About the author 

The Barlow Irvin Team

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