Mortgage with 1 year accounts
Being self-employed offers the freedom to shape your own path—and we’re here to bring that same freedom and flexibility to your mortgage journey.
Self-Employed Mortgage with Just One Year of Accounts
If you’ve only been self-employed for a year, getting a mortgage is absolutely possible—but it does come with a few added challenges. Many lenders prefer to see at least two to three years of accounts when assessing income stability. However, some specialist lenders will consider applicants with just one full year of trading, especially when supported by a strong overall profile.
Working with an experienced mortgage broker is crucial at this stage. We know which lenders are open to applicants with limited accounts and how to present your case in the strongest possible light.
Boost Your Approval Chances
Even with one year of accounts, you can improve your chances by ensuring your finances are in order. Here’s how:
- Maintain a Good Credit Score: Timely bill and loan repayments are essential. Missed payments—even on credit cards or mobile bills—can hurt your application.
- Reduce Your Debt: Pay down or clear existing debts and avoid unnecessary borrowing in the months leading up to your application.
- Close Inactive Credit Accounts: Reducing the number of open lines of credit can improve your credit profile.
- Stay Out of Overdrafts: Lenders want to see that you're managing your money well and not relying on overdraft facilities.
You can monitor your credit score for free through services like Experian, ClearScore, or Credit Karma.
Why Is It More Challenging with Only One Year of Accounts?
Lenders view self-employed applicants as higher risk because income can be variable and harder to verify. With only one year of trading, there’s less evidence of sustainability.
Those on fixed-term PAYE contracts often have an easier time as their income is straightforward. But the mortgage market has evolved, and more lenders are now open to flexible self-employment situations—especially when supported by accurate records and strong documentation.
How to Prove Your Income
To support your application, you’ll typically need:
Your most recent set of finalised accounts
SA302 tax calculations and corresponding Tax Year Overviews from HMRC
Business bank statements
Contracts or service agreements (particularly for freelancers or contractors)
Some lenders may require a certified accountant to prepare or verify your financial documents.
If you operate as a sole trader or in a partnership, lenders usually assess your income based on net profits. For limited company directors, salary and dividends—or in some cases, retained profits—will be taken into account depending on the lender’s criteria.
How Much Can You Borrow?
In most cases, self-employed borrowers can access up to 4.5 to 5 times their verified annual income. With only one year of accounts, lenders may be more conservative, but exceptions can be made if:
Your income is high relative to the loan
You have a large deposit
You can present projected income for the coming year
What is an Income Projection?
An income projection is a forward-looking estimate of your earnings over the next 12 months. When prepared by a qualified accountant, some lenders will accept it alongside your existing accounts—especially if you have future contracts already secured.
Income projections can strengthen your case and help you access better mortgage rates, particularly when your trading history is limited but your outlook is strong.
How Much Deposit Will You Need?
With only one year of accounts, most lenders will require a minimum deposit of 15%.
A larger deposit (20% or more) improves your chances of approval and secures better rates.
If you have adverse credit, you may need to provide even more upfront.
How Can a Mortgage Broker Help?
A broker can be your greatest asset when applying with only one year of self-employment history. Here’s why:
Access to specialist lenders who accept short trading histories
Expert guidance on documentation and income presentation
Efficient packaging of your application for faster approvals
No-obligation advice so you can explore your options without pressure
We specialise in helping self-employed clients secure the right mortgage—whether you’re a sole trader, freelancer, contractor, or company director.