Can You Get a Mortgage With 1 Year's Accounts?

If you have recently gone self-employed, you may worry that you need years of trading history before any lender will look at you. The reassuring news is that a mortgage with 1 year's accounts is possible. It is not the mainstream route, and fewer lenders offer it, but with the right preparation and the right lender your first full year of accounts can be enough to secure a mortgage.

This guide explains when a one-year application works, which lenders may consider it, the evidence you will need, and how to make your case as strong as possible.

Is it really possible?

Yes. While many lenders prefer two or three years of accounts, a meaningful minority will assess an application on a single year of finalised figures. What they are really looking for is confidence that your income is sustainable — so the strength of that one year, and the wider picture around it, matters enormously.

You are more likely to succeed if:

• Your first year shows solid, believable profit for your trade.
• You have relevant experience in the same field before going self-employed, such as moving from employment into contracting in the same profession.
• You have a healthy deposit and a clean credit history.
• Your income is stable or rising, not a one-off spike.

Which lenders may consider one year's accounts?

There is no single list, and criteria change regularly, but lenders that consider one-year applications tend to fall into a few groups. Some mainstream lenders will do so for limited company directors and sole traders whose accounts are prepared by a qualified accountant. Certain specialist and building society lenders are more flexible still, particularly where the applicant has a strong professional background.

Because this part of the market shifts often and terms vary widely, it is difficult to shop for these lenders yourself. A whole-of-market broker keeps track of who is currently comfortable with a single year and on what terms, which is why advice is especially valuable here.

Evidence you will need

Expect to provide most or all of the following:

• One year of finalised accounts, prepared by a qualified or certified accountant.
• Your SA302 tax calculation and matching tax year overview from HMRC.
• Business and personal bank statements, typically the last three to six months.
• Proof of deposit, ID and address.

If you are a limited company director, lenders may also want to understand your salary and dividends, and in some cases your share of retained profit. Sole traders will be assessed on net profit.

How to strengthen your application

With only one year of figures, presentation and preparation carry extra weight. Consider the following:

• Use a recognised accountant. Accounts signed off by a qualified or chartered accountant reassure underwriters and are sometimes a condition of one-year lending.
• Build a larger deposit. More equity reduces the lender's risk and widens your choice of lender. Aiming for 15% or more can make a real difference.
• Keep your credit file clean. Register on the electoral roll, avoid missed payments, and keep credit use low in the months before applying.
• Explain your background. A track record in the same profession before going self-employed helps a lender see continuity rather than risk.
• Avoid over-minimising profit. Reducing declared profit to cut tax also reduces the income a lender can use. Strike a sensible balance.

Getting these details right can turn a borderline case into an approvable one.

Where a broker fits in

Applying to the wrong lender with only one year of accounts often ends in a decline, which can leave a mark on your credit file. A broker helps you apply once, to a lender that already accepts one-year applications, with your income presented the way that lender wants to see it.

At Wisely, self-employed and newly self-employed borrowers are a core specialism. We are independent, whole-of-market and FCA-regulated, with access to 120+ lenders. We will look honestly at your first year of accounts and tell you what is realistically achievable — and if waiting a few months for your next year-end would transform your options, we will tell you that too.

Talk to a Wisely adviser

If you have one year of accounts and want to know where you stand, book a free, no-obligation call on 023 8268 1111. A named adviser will review your figures and set out your options clearly.

For the full picture on trading history, income assessment and evidence, see our main self-employed mortgage guide.

Figures and lender criteria correct at the time of writing. Your home may be repossessed if you do not keep up repayments on your mortgage.