If you’re self-employed, you might assume it’s harder to qualify. The truth is Shared Ownership for the self-employed is entirely possible, provided you understand the process and can demonstrate a stable income over 2 or 3 years.
In this guide, we’ll explore how Shared Ownership works if you’re self-employed, what mortgage options are available, and how to improve your chances of being accepted.
What is Shared Ownership?
Shared ownership is a government-backed scheme designed to help people buy a home if they can’t afford to buy outright. You purchase a share (usually between 25% and 75%) of a property and pay rent on the remaining share.
Because you are buying a share of the property, it means you will only need a deposit for the mortgage on the share, which is significantly more affordable than buying outright.
Shared Ownership is ideal for first-time buyers, single-income households, and yes - self-employed individuals who meet the income criteria.
Shared Ownership eligibility criteria
Being self-employed does not disqualify you, but you’ll need to meet the Shared Ownership criteria, including:
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Maximum income: If your household income exceeds £90,000 in London (£80,000 elsewhere), you may not qualify.
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You must not already own a home.
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You should not be able to afford to buy a home on the open market.
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You must be able to show you are not in rent or mortgage arrears and demonstrate a good credit history.
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You must be 18 or older.
How do I know if I am considered self-employed?
If you own 20% or more of a business and it provides your main source of income, you’ll generally be considered self-employed by mortgage lenders. There are three common types of self-employed professionals, based on how your business is structured: sole trader, contractor, and limited company director:
A sole trader is someone who owns and runs a business independently, taking full responsibility for its operations. Sole traders can employ others, but they remain solely accountable for the business.
A contractor is someone who offers their services or expertise to other businesses for a fixed term or specific project. Contractors may operate as sole traders or through their own limited companies.
A limited company director shares responsibility for the business with other directors or shareholders. This setup spreads accountability across the leadership team.
Getting a Shared Ownership mortgage when self-employed
Getting a Shared Ownership mortgage when self-employed involves more documentation than it does for employed applicants, as the lender wants assurance that you have a stable income, but it’s very achievable. Most lenders will want to see:
- Two or more years of certified accounts – prepared by a qualified accountant
- SA302 forms (or an HMRC tax overview) for the last two or three years
- Passport or driving licence
- Recent utility bills
- Bank statements for three to six months
- Evidence of your deposit
We highly recommend talking to a mortgage advisor who understands Shared Ownership and can recommend suitable lenders.
Managing your finances
Whether you’re freelancing, contracting, or running a business, managing your finances and keeping records of your income is essential if you want to buy through Shared Ownership, and helping your application get accepted. Here are key tips:
- Keep clean records: Have up-to-date business accounts and tax returns.
- Save consistently: Build a deposit fund and demonstrate regular saving behaviour.
- Reduce debt: Pay off any credit cards or loans where possible.
- Plan ahead: Speak to a mortgage advisor early to assess your affordability.
If you're self-employed and buying a house, lenders want to see stability and planning - not just income figures.
Talk to a Mortgage Advisor
We highly recommend talking to a mortgage advisor with Shared Ownership experience who can look at your finances and help you find the best deal.
They can help you understand your affordability based on your self-employed income - that is, how much a lender is likely to lend you for your Shared Ownership purchase.
You can also take a look at our Shared Ownership Affordability Calculator to quickly assess what you can afford before starting the purchase process. Our calculator is designed to give you a clear picture of what you can realistically afford in today's housing market.
Frequently asked questions about Shared Ownership for the self-employed
Yes. If you meet the income requirements and can prove your income, self-employed applicants are eligible for shared ownership.
Typically, you’ll need:
- At least two years of SA302 tax calculations
- Bank statements (personal and business)
- Proof of identity and address
- A deposit and proof of savings
Some lenders might also ask for a projection from your accountant.
Most providers and mortgage lenders will carry out an affordability check. They’ll consider your income, debts, and estimated costs, including:
- Monthly mortgage payments
- Rent on the remaining share
- Service charges
You can get an early idea by using affordability calculators or by talking to a financial advisor. Explore the Shared Ownership purchase process for more information.
