This month, we are taking a closer look at those working outside the routines of the typical working week. Self-employed, almost retired, or between jobs—how does this track for mortgages and insurance? Even with a regular income, this month, our newsletters will help you find more financial security. Providing a wealth of knowledge for all!
To get started, we’ll go through how to get a mortgage. What income protection and critical illness cover is available. What health insurance policy could help ensure you are ready to work. We explore insurances you might need if you work from home or have a business. Plus, did you know equity release isn’t affected by your job? And finally. We’ve asked our self-employed clients and peers for some bonus tips. To stay on top of your finances when you don’t have a regular income.
Keep reading to find out more. Don’t forget. Using an advisor can help. Taking the hassle out of your mortgage and insurance needs. Contact us today for personalised advice just for you!
Work habits in the UK continue to evolve and change. And so, the mortgage industry is addressing concerns from the self-employed. Guess what? Did you know you can get a mortgage if you are self-employed? You may just need to get some extra steps in place. But we are here to help and get you ready for homeownership!
Let’s dive in!
Yes, you can get a mortgage in the UK if you're self-employed, unemployed, retired, or haven't been in a job long. But the process may be more complex. Lenders focus on affordability, income stability, and creditworthiness. Here’s what to expect:
1. Self-Employed
Possible? Yes, but stricter requirements
What You Need:
2-3 years of accounts
- SA302 tax returns + tax year overviews from HMRC
- Bank statements to show your income stability
- A good credit score & deposit (10-20% is usually needed)
Tip: Using an independent mortgage broker specialising in this to find more accommodating lenders.
2. Unemployed
Possible? Yes, but harder
What You Need:
- Proof of alternative income (e.g., savings, rental income, pension, benefits)
- A larger deposit (often 20%+)
- A strong credit score
Tip: Some lenders may approve if you have a co-signer or guarantor.
3. Retired or Nearing Retirement
Possible? Yes, but age limits apply
What You Need:
- Proof of pension income, savings, or investments
- Some lenders have a maximum age limit (often 75-85 years old at mortgage end)
- Equity Release (like lifetime mortgages) or retirement mortgages may be an option.
Tip: A Retirement Interest-Only (RIO) mortgage may offer lower repayments.
4. Haven't Been in a Job Long
Possible? Yes, but depends on the lender
What You Need:
- Some lenders require at least 3-6 months of employment
- If you are switching jobs but in the same industry. It’s easier to get approval
- A strong credit score and larger deposit may help
Tip: If on probation, some lenders may still approve. Especially if you have a contract showing stable employment.
General Tips for Approval
Improve Your Credit Score – Pay off debts, avoid overdrafts, and check your credit file.
Save a Bigger Deposit – A 10-20% deposit makes approval easier.
Use a Specialist Mortgage Broker – Some lenders specialise in self-employed, unemployed, or retired applicants.
Show Stable Income – Even if it's from investments, pensions, or side businesses.
Would you like help finding a mortgage for your situation? Hit ‘reply-to’ to chat with us today!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Maybe you've spent a bit of time putting together your business. Now everything is going well, you wouldn't want something unexpected to get in the way? This is where insurance can help. Of course, we are big believers in setting up these support systems.
If you’re self-employed in the UK, building and contents insurance is critical to protect your assets! Especially if you work from home, own your business premises, or store valuable equipment. We'll explain why down below:
Buildings Insurance (If You Own a Property)
Building Insurance covers the cost of repairing or rebuilding your home/business premises. Including damage by fire, flood, storms, vandalism, or structural damage. It’s a mortgage requirement, as most require it.
But, you’ll need to let your provider know if you work from home. Damage to your home that you can’t afford to fix could affect both your business and personal life.
Contents Insurance (For Home & Business Equipment)
This will cover personal and business items. From theft, fire, and water damage. Plus, as an optional extra, accidental damage. Could you afford to replace all your work equipment? What about expensive tools, laptops and computers? Or hairdressing and beauty equipment, or specialised technology?
It’s important to declare anything you couldn’t afford to replace. Regular home insurance may not cover business-related items.
Don't forget client and work coverage. If you keep client files, stock, or business documents at home. Contents insurance can help recover losses.
Additional Cover to Consider
- Business Equipment Insurance: Protects work-related devices (cameras, laptops, tools). This extends outside your home.
- Public Liability Insurance: If clients visit your home, this covers injuries or damage claims.
- Business Interruption Insurance: Covers loss of income if your home/workspace becomes unusable.
Would you like recommendations on specialist insurers for the self-employed?
Give us a call for more detailed information specific to your work. From hairdressers, beauticians, builders and plumbers. To IT consultants, mortgage brokers, and freelance writers.
We can help!
If you're self-employed in the UK, income protection and critical illness cover are extra critical. You don’t have the safety nets that employees do. Like statutory sick pay (SSP), employer sick leave, or workplace health benefits. But of course, no matter your employment status, income protection and critical illness cover add extra support when you need it most.
Here are some reasons to consider taking out extra policies this year:
No Sick Pay or Employer Benefits.
If you fall ill or have an accident, you won’t receive SSP. (Currently £116.75 per week, only if you qualify for Universal Credit or Employment Support Allowance). Unlike salaried employees, you won’t have workplace income protection, private healthcare, or death-in-service benefits.
Cover for Long-Term Illness or Injury.
Income Protection Insurance replaces a portion (typically 50-70%) of your gross income if you're unable to work due to illness or injury. Helping you cover bills, rent/mortgage, and living costs. Critical Illness Cover pays a lump sum if you're diagnosed with a serious illness. Like cancer, stroke, or heart attack. Helping with medical costs, mortgage repayments, or lifestyle adjustments.
Stability for Your Business & Family.
If you’re self-employed, your business depends on you. A long-term illness or accident could mean a loss of clients, contracts, and income. If you have a family or dependants, these policies provide financial support when you can't work.
Mortgage & Debt Protection.
Many self-employed people rely on business loans, personal credit, or a mortgage. Income protection ensures you can keep up with repayments if you can't return to your usual role.
Peace of Mind & Flexibility.
Private insurance gives reliable financial support and tailors to your needs. Some policies allow you to adjust cover based on fluctuating income.
Which One Do You Need?
- Income Protection: Best for covering everyday living costs if you can’t work for an extended period.
- Critical Illness Cover: Best for a lump sum payout in case of a life-altering illness.
For full protection, many self-employed people combine both. Ensuring financial stability for the unexpected.
Would you like advice on choosing a policy that fits your situation? We can help you find one specific to your needs. Give us a call today!Top of Form
Are you self-employed, retired, or unemployed and looking for equity release? Are you wondering if you are eligible? The short answer is yes! As you will need an advisor for equity release, we can go through all the details. Depending on your situation, it may get a little complicated. But we are here to help!
Your employment should not affect equity release. The only time proof of income is required is if you want to opt for a payment plan.
With equity release, there is no requirement to repay the loan. But, some lenders offer interest servicing plans. (Which can provide a discount on the interest rate). If you opt for one of these plans, we require proof of income. It is usually the last SA302 or three months’ payslips. The three-month bank statement can be used. Providing the income is going into that account.
Just to complicate things a little more. There are a few lenders who offer plans that start as mortgages. But turn into Lifetime Mortgages at retirement age. These plans are stricter. The proof of income is the same as for a residential mortgage. We find, due to their strict criteria, they are uncommon.
Do you need help with equity release? Let us help take the hassle out of the process and set you up for the future.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
While we are so lucky in the UK that private health insurance isn’t required. The NHS provides free healthcare for all. But you may want to look into private health insurance for a couple of reasons. It's a nice bonus to the NHS — with shorter wait times and better flexibility. Essential for the self-employed!
Of course, whether self-employed or not, maintaining your health is always important. As is valuing your time. Keep reading to discover how private health insurance can help you.
The NHS can have long waiting times for non-urgent treatments or certain specialists. But, private health insurance can provide quicker access to medical care. This is sometimes the deal breaker for our clients! Meaning you can avoid long waiting lists for surgeries, consultations, or diagnostic tests.
Plus, did you know you could choose your healthcare providers (e.g., which hospital or specialist you see)? You'll have more comfortable accommodations during treatment (private rooms, etc.). Some really value this additional comfort and convenience that private care provides. It's a great bonus when you are feeling unwell and need more support.
It can often provide access to treatments and services not available through the NHS. Such as certain therapies and treatments abroad. Or specific types of care that may not be covered under the NHS.
Plans can also include dental care and optician services. Which aren't covered by the NHS except for emergency dental care or essential optical services.
Health insurance can offer you flexibility when it comes to treatment times and locations. This might be extra appealing if you have a busy work schedule! Do you need medical appointments at times that fit around your business?
So, while we are very grateful for the NHS. And private health insurance isn’t strictly necessary as a self-employed person in the UK. But the benefit for your peace of mind and quicker access to healthcare is so helpful. If you're considering it, weigh the costs against the benefits. Question what your time is worth to the business.
Do you have health insurance, or are you considering getting a policy? We'd love to hear more about what features you'd love to see in your PMI policy. Do you have time to reply and give us more info? We can get it tailored directly for you!
Managing money and bills self-employed can feel like a juggling act. Especially since you don't have steady pay or the automatic deductions for things like taxes and national insurance.
However, with the right systems in place, you can stay on top of your finances and ensure everything is paid on time. Here are some tips we’ve loved that can help take the hassle out of bills and finances. (Feel free to print this and use it as a checklist!)
- Set Up a Separate Business Bank Account
We recommend separating your business finances from your personal ones. This makes it easier to track income and expenses. Make sure you track all your income to know how much tax to pay at the end of the year.
- Use Accounting Software or Spreadsheets
This can help track income, expenses, and VAT (if you’re VAT-registered). Many of these tools also let you automate invoicing and reminders. If you're more comfortable with spreadsheets, create a system to log income and expenses.
Unlike a regular job, income tax and National Insurance contributions (NICs) are not automatically deducted from your earnings. You could open a separate tax savings account for a percentage of your earnings. Ensuring you have the money available when it’s time to pay your taxes.
You can claim business-related expenses to reduce your taxable income. So keep all your receipts and invoices in case you need to prove them to HMRC. Accounting software can help categorise and track expenses automatically. Or you can log them in a spreadsheet.
- Invoice Promptly & Keep Track of Payments
You can use templates or invoicing software to create clear, professional invoices. Include your business details, a breakdown of the work, payment terms, and bank details. Don’t be afraid to chase overdue payments with gentle reminders. Or more formal follow-ups. Keeping cash flow healthy is crucial!
Saving around 3-6 months living expenses can help cover unexpected costs. Or if you have short periods when income is lower than usual. Consider using a high-interest savings account to help your money grow. Income protection, critical illness cover, and private health insurance can provide an extra safety net.
- Consider Pension & Retirement Planning
If you don’t have access to a workplace pension, you’ll need to set up a private pension. The Self-Invested Personal Pension (SIPP) is a good option for many self-employed individuals. Allowing you to contribute directly to your pension fund. Chat to your accountant about tax relief on your pension contributions. A great incentive to save for the future.
If you're ever unsure about anything tax-related, it's always worth speaking to an accountant or financial advisor. Is there a specific area you’re finding tricky to manage? Like invoicing or taxes, or are you just starting to build these habits? We'd love to chat and see where we could help.
Sources
https://www.financialreporter.co.uk/blogs/get-ready-for-the-return-of-the-remortgage.html
https://www.which.co.uk/news/article/11-house-price-and-mortgage-predictions-for-2025-aWAm63L8xlwM
