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Can I Get a Mortgage With 1 Year’s Accounts?
Yes – it is possible to get a mortgage with only one year of self-employment. But let’s be upfront: it’s not as straightforward as it would be with two or three years of accounts behind you.
Most lenders prefer a longer track record because it gives them confidence that your income is stable and sustainable. That said, there is a market for newly self-employed borrowers. At Strive, we’ve helped sole traders, contractors, LLP partners, and limited company directors secure mortgages with just 12 months of trading history — and in some cases, even less.
This guide covers everything you need to know:
- Why lenders are cautious
- How much you can borrow
- Which lenders will consider one year’s accounts
- Steps you can take to boost your chances
At Strive, we specialise in mortgages for the self-employed — whether you’re a sole trader, limited company director, contractor, or LLP partner. We know the criteria inside out and how to position your case to get the best outcome. Get in touch today to explore your options.
Why Is It More Difficult to Get a Mortgage with Just One Year of Self-Employment?
Lenders want confidence that your income is stable and sustainable. With only one year of trading history, they have limited evidence to judge this. That makes it harder for them to predict whether you’ll continue earning at the same level.
Key reasons it’s more difficult include:
- Limited track record – Most lenders prefer 2–3 years of accounts to spot trends and prove consistency.
- Income volatility – Self-employed earnings can fluctuate, and with just one year, there’s no way to see whether spikes or dips are typical.
- Higher risk profile – Banks often see newly self-employed applicants as riskier compared to employed borrowers with guaranteed payslips.
- Policy restrictions – Many mainstream lenders simply set a hard rule of “2 years minimum” and won’t consider exceptions.
That said, there are lenders who will consider applicants with 12 months of trading — especially if you can show strong industry experience, contracts, or a clear work history.
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What Is the Minimum Time Self-Employed to Get a Mortgage?
Most lenders prefer at least two to three years of self-employed accounts before offering a mortgage, as this proves your income is stable and sustainable. However, there are lenders who will consider applicants with just 12 months of trading history, and a few even look at 18 months.
Below is a breakdown of lender policies on the minimum time self-employed required to apply for a mortgage.
| Minimum Time Required | Lenders |
|---|---|
| ✅ 12 Months | HSBC, The Mortgage Lender, Norton Home Loans, Pepper Money, Bluestone Mortgages, Precise Mortgages, Kent Reliance, Together, The Loughborough BS, Halifax, Vida Homeloans, Gatehouse Bank, West One Loans, Central Trust Limited, LendInvest, Swansea BS, Mansfield BS, Foundation Home Loans, Marsden BS, Scottish BS, Gen H, Harpenden BS, Saffron for Intermediaries, Aldermore, Cumberland BS, Hinckley & Rugby BS, Earl Shilton BS, Dudley BS, Kensington Mortgages, Market Harborough BS |
| ✅ 18 Months | Market Harborough BS, Chorley BS |
| ✅ 24 Months | Santander, Bath BS, Clydesdale Bank, April Mortgages, Principality BS, Monmouthshire BS, The Co-operative for Intermediaries, Hanley Economic BS, Nationwide BS, Stafford BS, Virgin, Furness BS, Perenna, MPowered Mortgages, Suffolk BS, Skipton BS, Darlington Intermediaries, Coventry BS, Atom Bank, Family BS, Metro Bank, NatWest, Nottingham BS, Leeds BS, TSB, Hodge, Accord Mortgages, Penrith BS, Progressive BS, Melton BS, Teachers BS, Vernon BS, Tipton BS, Leek BS, United Trust Bank, Cambridge BS, Newcastle for Intermediaries, Buckinghamshire BS, Barclays, West Brom BS |
| ✅ 36 Months | Tandem Bank, Newbury BS, Ecology BS, Bank of Ireland* |
How Is Income Assessed with Just One Year of Self-Employment?
The way lenders assess your income depends on your business structure:
- Company Directors – Most lenders use salary + dividends to calculate affordability. A smaller group of lenders will instead use salary + share of net profit (ideal if you retain profits in the business). However, with only one year of accounts, the majority will stick to the more cautious salary + dividends model, which can leave you short if you keep money inside the company.
- Sole Traders – Lenders work off your net profit after expenses, as shown on your SA302s or accounts.
Because fewer lenders are flexible on one year’s accounts, having the right broker is crucial to avoid being assessed on a figure that doesn’t reflect your true earnings.
How Much Can I Borrow with One Year of Self-Employment?
- Typical multiples: Around 4.5× to 5× income.
- Enhanced multiples: Some lenders stretch to 5.5× for higher earners with strong credit and larger deposits.
- Professional borrowers: Certain professions (doctors, lawyers, accountants, vets) may qualify for up to 6× income under specialist schemes.
Your maximum borrowing also depends on the deposit size — the bigger it is, the more flexibility lenders have on both rates and income multiples.
What Is Classed as Self-Employed for Mortgage Purposes?
Each lender has their own definition, but generally you’ll be considered self-employed if:
- You own 25% or more of a business (sole trader, partnership, or limited company).
- You pay your own tax directly (rather than through PAYE).
- Your income is drawn mainly from business profits, dividends, or retained earnings.
Some lenders take a stricter or looser approach — for example, a director with a small shareholding might still be assessed as employed if most income is via PAYE.
Because definitions vary, it’s important to check how a lender will treat your setup before applying. At Strive, we know which lenders classify income which way, and how to present your case to maximise affordability.
What Deposit Do I Need if I’ve Been Self-Employed for One Year?
Self-employed mortgages can be available from as little as 5% deposit, but the exact amount you’ll need depends on several factors. Lenders look beyond just your accounts and consider the bigger picture:
- Affordability – How your income is assessed and whether it’s sustainable.
- Property type – New builds, flats, or unusual properties may require larger deposits (often 10–20%).
- Credit score – Strong credit can help secure 5–10% deposit options, while weaker credit usually needs more.
- Residency status – Non-UK residents or applicants with limited credit history may be asked for higher deposits.
- Property use – Buy-to-let or specialist properties typically need at least 25% deposit.
In short, while 5% is the starting point, most self-employed applicants find the best choice of lenders and rates opens up with a 10–25% deposit.
Looking for 5 star mortgage advise? We’re ready to help.
Whatever stage you’re at, it’s never too early to reach out.
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How to Get a Mortgage With 1 Year’s Accounts
Here’s what really makes the difference when you’ve only got one year to show.
1. Prove Your Income Clearly
Documents you may need include:
- SA302s or tax returns (minimum 1 year, more if available).
- Certified accounts prepared by an accountant.
- Personal and business bank statements (last 3–6 months).
- Ongoing or future contracts (helpful for contractors/freelancers).
- Accountant’s projection for year 2 (some lenders accept up to 30% higher than year 1 if backed by a business plan).
2. Use a Qualified Accountant
Having accounts signed off by a recognised accountant massively strengthens your application. Lenders are far more likely to trust your figures if they’ve been independently prepared.
3. Show Healthy Cash Flow
Cash flow is king. Lenders want to see:
- Regular income hitting your account.
- Sensible expenses.
- Evidence you’re building reserves, not living month-to-month.
If your business is profitable and you’re running it well, that’s a big tick in your favour.
4. Improve Your Credit Rating
A strong credit score can offset the risk of being newly self-employed. Focus on:
- Paying bills on time.
- Keeping debts low.
- Avoiding too many new credit applications.
- Checking your credit file for errors.
5. Put Down a Bigger Deposit
The bigger your deposit, the easier it gets. With 15–20% down, you’ll often have access to far more lenders (and cheaper rates) than you would with 5%.
6. Contractors & CIS Workers Have an Edge
If you’re a contractor or work under the Construction Industry Scheme (CIS), some lenders treat you more like an employed borrower — even if technically you’re self-employed. This can mean easier affordability and less emphasis on years of accounts.
Speak to an advisor today, to lock you in with the best deal.
What Interest Rates Can You Expect?
Rates depend on your profile, deposit, and which lender you go with.
- Mainstream lenders – if you qualify, you may access competitive rates.
- Specialist lenders – more flexible, but often charge a small premium.
Either way, being strategic about which lender you approach first is crucial. Too many declined applications can hurt your credit score.
Is It Worth Waiting Until You Have 2 Years of Accounts?
Having two years or more of self-employed accounts will certainly open up more options, especially with high-street lenders who prefer a longer track record. You’ll also find it easier to get competitive rates, higher income multiples, and wider product choice.
That said, there are still decent options available with just one year — particularly if your income is strong, you’ve got industry experience, or your trading history is backed up with contracts or forecasts.
If your first year shows low profits (which is natural for many businesses starting out), then waiting until your second year could work in your favour — especially if you expect higher income to be reflected in your next set of accounts.
👉 The best approach is to check what you qualify for now with one year, and weigh it up against the potential benefit of waiting for your second year of accounts. At Strive, we can run both scenarios and show you the options side by side.
What Documents Are Needed for a Mortgage with One Year of Self-Employment?
The documents lenders ask for will depend on whether you’re a sole trader or a limited company director. In most cases, you’ll need to provide more than just your accounts to prove income stability.
Sole Traders:
- SA302s (tax calculations) for the most recent year
- Tax Year Overview from HMRC
- 3 months’ personal and/or business bank statements
Limited Company Directors:
- Company accounts (usually prepared by an accountant)
- SA302s and Tax Year Overview
- Sometimes an accountant’s certificate to confirm income
- In some cases, accountant’s projections for the year ahead
- 3 months’ business bank statements
These documents help lenders build confidence that your income is genuine, sustainable, and sufficient to support the mortgage.
Why Work With Strive Mortgages?
At Strive, we’ve helped hundreds of business owners, sole traders, directors and contractors secure mortgages with just 1 year’s accounts. We know:
- Which lenders are flexible.
- How to package your case.
- When to use specialist lenders vs mainstream banks.
- How to unlock higher income multiples and better terms.
We’ll guide you through every step — saving you wasted applications, stress, and time.
👉 Ready to get started? Speak to Strive today and let us secure the right mortgage for your business journey.
At Strive, we don’t just talk about solutions — we deliver them. See how we helped a London company director secure a £750k mortgage with just one year’s self-employed accounts: Read the full case study.
Related Guides
If you found this guide helpful, you may also like:
These go deeper into how lenders assess company director income and when retained profits can be used.
FAQs on Self-Employed Mortgages With 1 Year’s Accounts
What counts as self-employed for a mortgage?
For mortgage purposes, you’re classed as self-employed if you own 25% or more of a business. That includes sole traders, limited company directors, and partners in LLPs. Even if you take a PAYE salary from your own company, most lenders still treat you as self-employed if you have that level of ownership.
Do lenders use salary and dividends for company directors?
Yes – most lenders base affordability for limited company directors on your salary + dividends. However, this isn’t always the best measure of your true income if you retain profits in the company.
Can lenders use company profits instead of dividends?
Some specialist and flexible lenders will consider salary + net profit after corporation tax, rather than just dividends. This can significantly boost borrowing power for directors who keep money in the business. See our company directors mortgage guide.
Can I just increase my salary to get a bigger mortgage?
Not necessarily. While it seems logical, lenders look at your overall accounts, not just what you pay yourself. Artificially bumping up salary close to a mortgage application can trigger affordability red flags. It’s better to work with a broker who can place you with lenders that assess profit, not just drawings.
Which lenders accept just 1 year of self-employed accounts?
Some of the most flexible lenders include Halifax, Kent Reliance, Kensington, Vida, Pepper Money, Cumberland, Swansea, and Gen H. Each has slightly different rules, so it’s about matching you to the right one.
How much can I borrow self-employed with 1 year’s accounts?
Most lenders cap at 4.5–5× income, but some stretch to 5.5×. For certain professionals (like doctors, solicitors, accountants, and vets), professional mortgage products allow up to 6× income.
Do I need an accountant to get a self-employed mortgage?
Strictly speaking, no. But in reality, yes – lenders are much more comfortable if accounts are prepared and signed off by a qualified accountant. In many cases, it’s essential.
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
