Mortgage rates remain higher than many people had become used to, inflation is proving less predictable, and for self-employed borrowers, demonstrating income and affordability can add another layer of complexity.
As the independent financial advice partner selected by IPSEADG, we regularly support freelancers, contractors and business owners navigating these decisions. In this update, we’ll walk through what’s changing – and what it could mean for you.
Interest rates and inflation: uncertainty remains
At the start of 2026, the outlook for inflation was starting to improve. More recently, however, rising energy costs linked to global events have created renewed uncertainty.
The Bank of England is taking a cautious “wait and see” approach, holding interest rates steady while it assesses how inflation develops.
For self-employed individuals, this matters because income can already fluctuate — and uncertainty around interest rates can make planning borrowing decisions feel more difficult.
What this means for you:
Interest rates may remain higher for longer than expected
The future direction of rates is less predictable
Careful planning around affordability is increasingly important
Mortgage rates: improving slightly, but still higher than historic lows
If you’ve been keeping an eye on mortgage rates, you’ll likely have seen them rise earlier in the year before easing slightly more recently.
While lenders are starting to compete again, rates are still significantly higher than the levels many homeowners secured between 2020 and 2022.
Typical rates today*:
2-year fixed: from 4.42%
5-year fixed: from 4.59%
Tracker and discount rates: From 3.96%
For self-employed borrowers, access to these rates can depend on factors such as:
Length and consistency of income history
Recent trading performance
How your income is structured (e.g. dividends vs salary)
What this means for you:
Monthly repayments may be higher than expected
Lender criteria can vary more for self-employed applicants
Preparing documentation early can help improve outcomes
A more balanced housing market
We’re seeing a housing market that is stable overall, but without the pace or competitiveness of previous years.
House prices are broadly steady, and buyer demand remains cautious. This is creating a more balanced environment, particularly compared to the fast-moving market of recent years.
What this means for you:
You may have more room to negotiate on price
There may be less pressure to rush decisions
Timing and preparation still matter, particularly when securing a mortgage
Transactions are taking longer
Another noticeable shift in 2026 is the pace of the buying process.
With fewer highly committed buyers and affordability pressures still in place, property chains can take longer to form and complete.
For self-employed buyers, where mortgage assessments may take longer, this can add to the overall timeline.
What this means for you:
Expect the process to take longer than in recent years
Having financial information ready in advance can help avoid delays
Flexibility is key
Remortgaging: a key moment for self-employed borrowers
A significant number of homeowners are reaching the end of fixed-rate deals this year.
Around 1.8 million mortgages are due to mature in 2026, meaning many households are reviewing their options.
For the self-employed, this can be particularly important:
Those who fixed their mortgage when rates were lower may now face higher repayments
Changes in income since the original mortgage may affect available options
Lender choice becomes especially important
What this means for you:
Reviewing your mortgage early can give you more flexibility
It’s important to understand how lenders will assess your income now
The right advice can make a significant difference to the options available
Looking ahead
As we move through 2026, much will depend on:
Inflation trends
Interest rate decisions
Wider economic stability
While there is still uncertainty, the market remains stable overall, with lenders continuing to offer a wide range of mortgage products.
What should you do now?
If you’re self-employed, it’s understandable to feel cautious in the current market.
In practice:
Some people choose to secure a rate for certainty
Others prefer to wait for greater clarity
Most benefit from understanding how their income will be assessed and what options are available
In some cases, it may be possible to secure a mortgage rate in advance, with certain lenders allowing offers to remain valid for a number of months. This can provide a degree of certainty, particularly in a changing rate environment, although this will depend on your circumstances and the product chosen.
Specialist support for self-employed borrowers
As the preferred independent financial advice partner of IPSEADG, Chase de Vere has extensive experience supporting self-employed individuals with mortgages and wider financial planning.
If you’re considering buying, remortgaging or reviewing your position, speaking to a specialist can help you understand what’s possible based on your circumstances.
You can speak to one of our specialist mortgage advisers, who are experienced in supporting self-employed clients.
Our initial mortgage advice service is fee-free, so you can have an initial conversation without any upfront cost or obligation.
Sources
This article is based on publicly available data from sources including the Bank of England, Office for National Statistics, HMRC property transaction data, and UK mortgage market reporting.
* Rates provided through Moneysupermarket and subject to deposit and personal circumstances (09/06/2026)
Important information
This article is for general information only and does not constitute financial advice or a recommendation.
Mortgage rates and availability depend on your individual circumstances, including your income, deposit and lender criteria. For self-employed applicants, additional documentation may be required.
You should not take action based solely on this information and should seek personalised advice where appropriate.
Your home may be repossessed if you do not keep up repayments on your mortgage.
