Self-Employed: Mortgage with 1 Year's Accounts
Find out how to get a mortgage with just 1 year's self-employed accounts — which lenders accept it, what documents you need, and how LTV affects your options.
What You Need to Know
If you've been self-employed for just over a year and want to get a mortgage, you don't have to wait until you have two or three years of accounts behind you. This guide covers what specialist lenders look for, how your deposit size changes your options, and how to give yourself the best chance of a successful application.
Can you get a mortgage with only 1 year's accounts? Yes — a number of specialist lenders and building societies will consider it. What they look at instead of trading history is your documentation, your deposit size, and whether you were employed in the same line of work beforehand.
How lenders typically assess your income with 1 year's accounts
When only one year of accounts is available, lenders generally want to see one or more of the following:
- Finalised accounts prepared by a qualified accountant — this usually means someone holding a recognised professional qualification (ACA, ACCA, CIMA, CIPFA or similar). Some lenders won't accept an accountant's certificate alone and insist on formal accounts.
- SA302s and Tax Year Overviews — documents from HMRC confirming your declared income. An SA302 is the tax calculation summary produced when you submit a self-assessment tax return.
- Business and personal bank statements — typically the last three months of business statements and at least one month of personal statements, to show active trading and income flow.
- An accountant's projection — some lenders will ask your accountant to confirm, in writing, that they expect your income to be maintained or to grow in the year ahead. This carries significant weight when accounts are limited.
For limited company directors, the approach can differ slightly — many lenders look at salary plus dividends drawn, and some also consider retained profits within the company. If you're a sole trader or in a partnership, lenders typically look at your share of net profit.
Does your LTV affect your chances?
Significantly, yes. Across the lenders who do accept one year's accounts, most apply a cap on the loan-to-value they'll lend to:
In practical terms, this means having a larger deposit — at least 15–20% of the purchase price — tends to open more doors when you're working with limited account history.
Does it help if you were employed in the same industry before going self-employed?
Often, yes — and this is one of the most important things to understand about how these lenders think. Several lenders who would normally require two or more years of accounts will relax that requirement if you can demonstrate a continuous career in the same profession before switching to self-employment.
If you've spent five years as a plumber employed by a firm, and you've now gone self-employed doing the same work, lenders see less risk than if you've launched into a completely new industry.
Some lenders extend this further — if you transitioned from employment to self-employment within the same profession very recently, they may consider your application even before a full year of self-employed accounts is in place, particularly if you can provide year-to-date income figures verified by an accountant.
What if you're a contractor rather than a traditionally self-employed sole trader?
Contractors — people working through a limited company or on fixed-term contracts — are often assessed differently to sole traders, and some lenders use day rate or annualised contract rate rather than accounts to determine income.
If this applies to you, it's worth exploring Greywood Financial's contractor mortgage guidance , which covers the specific criteria that apply to this type of employment arrangement.
What about the timing of your latest accounts?
Some lenders treat accounts as outdated if they're more than 12 months old. If a significant period has passed since your accounting year ended, certain lenders will ask for additional supporting evidence — such as recent bank statements — to show you're still actively trading at a similar level.
A handful of lenders apply a maximum age of 18–21 months on filed accounts before requiring supplementary documentation.
The takeaway: if you're approaching the end of a tax year, it may be worth waiting until your latest set of accounts is completed before applying — especially if your most recent year shows stronger income than the previous one.
What documentation should you prepare?
The exact requirements vary between lenders, but having the following available puts you in a much stronger position.
Having these documents organised before you approach a lender — or a broker — speeds up the process considerably and reduces the risk of delays once an application is underway.
Is it worth using a broker for a one-year account mortgage?
Yes — particularly in this situation.
The lenders who accept one year's accounts are not always the ones advertising prominently on comparison sites; many are smaller building societies or specialist lenders who deal primarily through brokers rather than directly with the public.
Applying to the wrong lender can result in a declined application that shows up on your credit history, which can then complicate future applications — getting the right match first time matters.
Not sure where you stand?
Speak to a Greywood adviser about your specific income type, deposit size and documentation — no cost, no obligation.
Frequently Asked Questions
Can I get a mortgage if I've only been self-employed for 1 year?
Yes. A number of specialist lenders and building societies will consider applications from self-employed applicants with just one year's accounts. You'll typically need finalised accounts prepared by a qualified accountant, an SA302 from HMRC, and bank statements. Your chances are stronger with a deposit of at least 15–20%, and even better if you were previously employed in the same industry before going self-employed.
What documents do I need for a self-employed mortgage with 1 year's accounts?
Most lenders will want: one year's finalised accounts signed off by a qualified accountant, your SA302 tax calculation and Tax Year Overview from HMRC, three months of business bank statements, and at least one month of personal bank statements. Some lenders also ask for an accountant's projection letter. If you moved from employment to self-employment in the same field, previous P60s can also help.
How much can I borrow if I only have 1 year's accounts?
This depends on the lender and your circumstances. Many lenders who accept one year's accounts cap the loan-to-value at 80%, meaning you'd need at least a 20% deposit. Some specialist lenders will go higher — up to 85–90% LTV — but this typically comes with stricter criteria.
Does it help if I was employed before going self-employed?
Yes, in many cases. Several lenders who would normally require two or more years of self-employed accounts will accept just one year if you can show you were previously employed in the same profession.
Will applying for a mortgage affect my credit score if I've only got 1 year's accounts?
A full mortgage application involves a hard credit search, which leaves a footprint on your credit file. Speaking to a broker first can help identify suitable lenders before a formal application is submitted.
Getting a mortgage with just one year's accounts is genuinely possible — but it requires the right lender, the right documentation, and ideally some guidance on structuring your application. If you're ready to explore your options, speaking to an adviser who understands the self-employed market is the clearest next step you can take.
Your home may be repossessed if you do not keep up repayments on your mortgage. Greywood Financial Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Ltd. Advance Mortgage Funding Ltd is authorised and regulated by the Financial Conduct Authority. The guidance contained within this article is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority. Greywood Financial Ltd is registered in England and Wales, Company No: 12713768. Registered Office: 124 City Road, London, EC1V 2NX.
