Self-Employed Mortgage with One Years Accounts

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Self-Employed Mortgage with One Years’ Accounts

Is it possible to get a mortgage if you’ve only been Self-Employed for one year?

Although you will most likely be limited in choice of lender and therefore the interest rates available, it’s possible to get a mortgage with just one year of accounting history, if you’re Self-Employed. The majority of Mortgage Lenders, especially most of those on the high street will ask Self-Employed mortgage applicants to provide three year’s worth of accounts, however, with the right lender, twelve months of certified accounts can be enough.

As the availability of Mortgage Lenders offering mortgages in these circumstances are quite low, you should expect the interest rates to be less competitive and the fees to be higher.

How do I prove my income with one years accounts

Proving your income can be more challenging when you only have one year of accounting history available, as most lenders will use an average income gained over two to three years. To strengthen your application when you only have one year’s accounts available, you may need to provide additional proof that your business is financially stable. This could include your business planning documents, particularly projected future income and your plans for growth.
As a Self-Employed applicant, the income that lenders will be willing to consider in support of your application will vary based on the type of Self-Employed activities you participate in. For example:

Limited Company Director

If you own a company, your personal salary and dividends that you pay yourself from the business turnover will be used as your income. In rare cases, some lenders will agree to look at net business profits also. In order to prove this income, you will need to provide:

  • Finalised accounts, certified by a qualified accountant for your first year of operation
  • SA302 for the same business year
  • Tax Year Overview from HMRC
  • Business banking statements

Sole Trader/Freelancer

As a sole trader, your personal annual income will be used to calculate your mortgage. If you have any additional proof that your income will continue, this will be helpful to back up your application if you only have one year of accounts available. Some professions can use their professional qualifications for this, such as Doctors, Lawyers etc. To prove your income, you will need to supply

  • SA302 form for the past year
  • Tax Year Overview from HMRC


In order for the income from your share of a business partnership to be considered in support of your mortgage application, you need to own at least 25% of the company. Your share of the net profits will then be used in the mortgage calculation. To prove this you will need to provide:

  • SA302 form
  • Tax Year Overview from HMRC
  • Business bank statements

Speak To An Expert

Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.

How much can I borrow?

Your employment status should theoretically not affect this, however, lenders may reduce their lending to mitigate the risk, if you can only provide one year of accounting history. The average mortgage applicant can expect to borrow four and half times their annual income, so long as they have a strong credit score and can adequately prove their income.

What deposit will I need?

Mortgages usually require around a 10% deposit. This does not change based on your employment type, however, as a Self-Employed applicant with a shorter trading history, you may improve your chance of acceptance if you can offer above the minimum deposit.

The Mortgage Guarantee Scheme, which was launched in April 2021 means that it is now possible for creditworthy applicants to obtain a 95% mortgage, which lowers the deposit requirement to 5%. Bear in mind, however, that this will increase interest rates.

Do I have access to the Help to Buy scheme if I’m Self-Employed with one years’ accounts?

Home ownership schemes are available to Self-Employed applicants and whilst it may be more challenging to find a lender willing to offer this when you have less proof of income, this shouldn’t be any more difficult than for other types of mortgage.

The Help to Buy scheme allows you to borrow up to 20% of your property value from the government(in the form of an equity loan), to use against your deposit requirement. You will need to provide the first 5% deposit and with the government loan on top, you only need to borrow 75% of the property value from the Mortgage Lender. in order to buy. The 20% equity loan is interest free for the first five years.

How can Yellow Brick Mortgages help?

Here at Yellow Brick Mortgages, we specialise in helping Self-Employed borrowers. If you have a shorter trading history, we can access those specific Mortgage Lenders who are able to consider your circumstances. This means that we can help you find a competitive deal and prevent you from wasting your time applying to lenders who are unlikely to offer you a mortgage.


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