Significant Changes to Halifax Self-Employed Mortgage Criteria

Halifax, one of the UK’s big six mortgage providers, has announced a significant change in its self-employed mortgage criteria, which will come into effect from tomorrow (Tuesday the 17^th of October 2023). The new criteria will make significant changes to affordability for self-employed individuals, reflecting the bank’s commitment to responsible lending while addressing the needs of its customers and brokers alike. In this blog we will go through the Halifax self-employed mortgage criteria changes and what this means for prospective new borrowers.

Halifax Self-Employed Mortgage Criteria Income Calculation Adjustment

The first change announced by Halifax will come into effect tomorrow. Halifax will make a pivotal change to the way it calculates income for self-employed mortgage applicants. The new criteria will consider the latest year’s income or the average of the last two years, whichever is lower. This adjustment applies to self-employed applicants with an income of up to £50,000 in the ‘previous year’ for applications initiated after the date.

For applications that were already in progress of a mortgage application, including those with a Decision In Principle (DIP) that was carried out before the 17th of October, the income calculation method will remain unchanged, considering the lower of the last two years’ income.

 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 Simon Bainbridge 
 
28 October 2026
 
 
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Can't recommend higher! I had a slightly complex set of needs because I'm self employed and was buying a second home. Oportfolio found me a great product, really helped with my tax planning and were great with updates all the way through the case progressing
  
 
 
 
 
  
 
 
 
 
 Amalia Vitale 
 
16 April 2025
 
 
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Oportfolio were recommended to us by a friend. We are both self employed artists and were nervous stepping into this realm as we were worried we'd have little result, regardless of income. Oliver made us feel instantly at ease and assured us that there were always options and then Molly took over down the line, always taking time to explain each step and guiding us with our choices. Thanks to Oportfolio we now have a house! And we feel secure with all the insurance options that they helped us with as well. Highly recommend!!!
  
 
 
 
 
  
 
 
 
 
 Rebecca Shepherd 
 
5 August 2024
 
 
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I would really recommend Oportfolio to anyone looking for a mortgage broker and I have! I was nervous about starting the process as a first time buyer and as a freelancer and assumed it would be very difficult to get approval for a mortgage because of it. Remmea, was amazing throughout the process; attentive and supportive. She was available to help whenever I needed and scheduled meetings to fit around my work schedule which as a freelancer is always changing. I know many freelancers in my industry have used Remmea and I'm glad she was recommended to me. She didn't disappoint and I'll continue to recommend her and Oportfolio to others who ask in the future!
  
 
 
 
 
  
 
 
 
 
 Mini Professionals Dance Academy 
 
7 February 2019
 
 
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Blown away!!! From the moment I started my mortgage application Oliver and his team were enthusiastic and worked around the clock to ensure I could get the best mortgage. As I own a limited company it is hard to find the right broker who is willing to put in the work and I had been let down previously and told that I couldnt borrow what was needed in order to get my dream home! I was recommended Oliver through a good friend and within record time I had the offer accepted, I now have my dream home and the process was smooth and quick.  I could not recommend him and the team highly enough! Thank you!
  
 
 
 
 
 
 
 
 
 

Tax Year Requirements

Additionally, Halifax now requires the latest Tax Calculations and Tax Year Overviews for all new applications to be for the tax year 2022/2023. This ensures that the most recent financial data is taken into account when assessing self-employed mortgage applications, aligning with their commitment to responsible lending practices.

Halifax has made it clear that there are no other changes to the self-employed income criteria or verification processes. The core of the application process remains consistent with previous standards, apart from the income calculation method and the required tax documentation for new applications. To learn more about Halifax self-employed income requirements for mortgages, you can call our team of brokers today and we will happily guide you through everything you need to know.

Support for New Businesses

In a move aimed at supporting budding entrepreneurs, Halifax will consider applications from businesses that have been trading for one full year but less than two years. This provides an opportunity for recently established businesses and self-employed individuals to access Halifax’s mortgage products.

These changes indicate Halifax’s commitment to adapting and evolving with the market while ensuring their customers have access to competitive mortgage products. It not only simplifies the income assessment process for self-employed individuals but also opens doors for new businesses and entrepreneurs who may not meet the traditional two-year trading history requirement.

Speak To A Specialist Self-Employed Mortgage Advisor

By considering the latest year’s income or the average of the last two years, Halifax is aligning itself with the current needs of the market and ensuring responsible lending practices for all of its potential clients. This adjustment is something that always needs to be carefully considered at mortgage application stage with the help of a qualified mortgage broker. If you are self-employed and looking at getting a mortgage, please give our team a call today to see how we can help.