Self-Employed Mortgages with One Years’ Accounts

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Can you get a mortgage if you only have one year of accounts?

In order to access a wide range of lenders and competitive interest rates, you will usually need at least two years worth of accounting history when you apply for a Self-Employed mortgage. It is, however, possible to get a mortgage from some  Mortgage Lenders with just twelve months of trading history available.

Whilst you may be able to secure better mortgage deals if you delay your application until you have more years of accounts available, our advisers will be happy to help you find the most competitive lenders available to you, whatever your circumstances.

How do I prove my income with one years’ accounts

As a Self-Employed mortgage applicant, there is more of a burden on you to prove the stability of your income, than for employed people. Mortgage Lenders use your income from the past two to three latest years to establish an average to try and mitigate the risk, which is why this can be difficult when you only have one year of accounts available.
In these circumstances, those lenders willing to consider your shorter trading history may ask for additional proof that your income is stable in the long-term, such as projected income for future years or your plan for business growth.
The documentation that you will need to provide in order to prove your income will vary depending on the type of Self-Employed business you carry out.

Limited Company Director

As a business owner you will need to show complete and certified accounts, SA302 forms and possibly business bank statements to prove your income. Your salary and dividends are usually used to calculate the mortgage, however, some niche lenders may be willing to consider your net profits also.

Sole Trader/Freelancer

As a Sole Trader or Freelance worker your personal income will be used to calculate your mortgage and both SA302 forms and finalised accounts will be needed to prove this income.


As a part owner of a business, you must own at least 25% in order for the income derived from this to be considered in support of your mortgage application. Lenders will then use your share of the net profits to calculate your mortgage and they will require an SA302 form from the latest year as proof.

How much can I borrow?

The amount you can borrow for a residential mortgage is always based upon personal affordability and credit score. Although the length of your Self-Employment can be an issue, the fact that you are Self-Employed does not affect your entitlement to a typical mortgage loan. Most applicants can expect to borrow four and half times their annual income.

What deposit will I need?

There is no particular deposit requirement for Self-Employed applicants and a standard deposit of 10% is typical for a residential property purchase. 95% mortgages have been more widely available in the UK since April 2021, although it’s unlikely that Self-Employed applicants with one year of accounting history will meet the criteria for this type of deal.

If you are able to offer more than the minimum 10% deposit, it is strongly advisable for applicants in your circumstances, however, as it can improve your chance of securing a mortgage and potentially give you access to better interest rates.

How can Vivid Mortgages help?

Our Mortgage Brokers, here at Vivid Mortgages specialise in providing Self-Employed mortgage advice and can access those niche Mortgage Lenders who are willing to consider Self-Employed applicants who have a shorter accounting history. This type of deal is rarely available on the high street and therefore even if you’ve been turned down in the past, don’t rule out your home ownership dream just yet, you may just not have found a lender to suit your needs.
We understand the complexities involved in Self-Employed mortgage applications, and can help you to prepare the right supporting documents in advance, to prevent delays and provide a smooth experience from start to finish.

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority. 

Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.  

Your Advisers

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