Return to the Mortgage Glossary Home to view explanations for all mortgage terms. What follows is the definition for the term Self-employed as it relates to mortgages in the UK. Self-employedBecause mortgages amount are often calculated relative to a multiple of your salary, salary is an important factor for a mortgage provider to determine how much credit they can offer to you. Being self-employed means that you do not work for any one else but yourself. As such, you will have to keep your own books and accounts. As such, it can sometimes be difficult to prove your income, or your income might vary wildly in relation to how well your business is doing. If you cannot prove your income, then many mortgage lenders will be unhappy about the prospect of lending your money. Most mortgage lenders will require that you produce wage slips and bank account details. Also, a large number of mortgage lenders insist on at least 3 years books to ascertain whether you are a good risk for their loans. Because of the increased risk of being self-employed, mortgage products for the self-employed tend to be more expensive
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