How to Get a Mortgage as a Business Owner in 2025 – What Lenders Look For

Securing a mortgage as a business owner in 2025 presents unique challenges. With lenders tightening their criteria due to economic shifts and higher interest rates, proving your financial stability is more important than ever. This guide explains what lenders look for, how to prepare your accounts under the latest rules, and key tips to boost your mortgage approval chances.

Can You Get a Mortgage as a Business Owner in 2025?

Yes! However, changes in lending policies mean lenders are stricter about verifying income and business stability. With fluctuating interest rates and new affordability checks, business owners must present strong financial records to qualify.

As a self-employed applicant, you’ll need to provide more evidence of income compared to salaried workers. But with the right preparation, you can still secure a mortgage with competitive rates.

What Do Mortgage Lenders Look For in 2025?

1. Strong and Consistent Business Income

Lenders typically require at least two to three years of financial records to assess:

• Your income stability and profitability
• Any significant fluctuations in revenue
• If your earnings can cover mortgage repayments

With the UK economy facing uncertainty, lenders in 2025 prefer applicants with a steady income pattern over recent years. If your income varies, they may average out your earnings or use the lowest figure.

2. Updated Tax Returns & Digital Accounts Compliance

Since HMRC’s Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is now fully in effect, self-employed individuals earning over £50,000 must use compatible software for tax reporting. From April 2026, this threshold will drop to £30,000.

What This Means for You:

• Lenders may now require quarterly income reports alongside annual SA302s.
• Digital accounting records can speed up mortgage approvals if they show stable income.

For limited company owners, lenders will continue to assess:

• Salary & dividends – Your total earnings from the company.
• Retained profits – Some lenders now factor in retained earnings to reflect a business’s real financial health.

3. Deposit Requirements in 2025

Mortgage rates have fluctuated due to Bank of England interest rate changes. While a 5-10% deposit is still possible, many business owners find it easier to secure approval with 15-20%.

Tip: A larger deposit reduces the lender’s risk and improves your chances of securing a lower interest rate.

4. Affordability Under New Mortgage Stress Tests

Lenders apply affordability stress tests to ensure you can afford repayments even if interest rates rise. In 2025, these tests are stricter, meaning lenders may assess your finances assuming a rate 2-3% higher than the current market rate.

What You Can Do:

• Lower personal and business debt to improve affordability.
• Show consistent earnings in the last 12-24 months.
• Reduce discretionary spending in the months leading up to your application.

5. Credit Score & Debt Management

Credit scores remain a key factor in mortgage approvals. In 2025, lenders prefer applicants with an Experian score above 700 (or 4+ with ClearScore).

Important:

• High credit card balances can lower your score. Aim to keep utilisation below 30%.
• Avoid new credit applications before your mortgage application.
• Check your credit report for errors before applying.

6. Business Structure & Lender Preferences

Lenders assess income differently depending on how you operate:

• Sole traders & partnerships – Income is assessed based on net profit from tax returns.
• Limited company owners – Salary and dividends are considered, but some lenders factor in retained profits.
• Contractors & freelancers – Daily rates may be used to calculate an annual salary equivalent, especially if you have a strong contract history.

Some lenders in 2025 are more flexible with limited company directors, considering overall business profits rather than just personal salary and dividends.

How to Improve Your Mortgage Approval Chances in 2025

• Use HMRC-compliant digital accounting software – This makes it easier to provide clear, up-to-date financial records.
• Work with a specialist mortgage broker – They can match you with lenders who are more business-friendly.
• Increase your deposit – The more you put down, the better your mortgage rate.
• Maintain a low debt-to-income ratio – Pay down outstanding business and personal debts before applying.
• Keep personal and business finances separate – Clean financial records make lender assessments easier.
• File taxes early – The sooner your latest SA302 is available, the smoother the mortgage process.

Which Lenders Are Best for Business Owners in 2025?

Some high-street banks are still hesitant with self-employed applicants, but specialist lenders are more flexible. In 2025, top lenders for business owners include:

• Mainstream Lenders: Nationwide, Halifax, HSBC (favourable for limited company directors).
• Specialist Lenders: Kensington Mortgages, Precise Mortgages, The Mortgage Lender (ideal for those with fluctuating income).

A mortgage broker can help find the best lender for your specific situation.

Final Thoughts

With 2025’s stricter mortgage rules, business owners must be well-prepared. Keeping clear digital financial records, boosting your deposit, and working with the right lender can make all the difference.

Need personalised mortgage advice? Helpbox is here to guide you through every step of the process!