Can I get a mortgage with one year of accounts?
Yes, a growing number of lenders will consider self-employed applicants with just one year of accounts or one year's SA302/tax calculation, though the majority still prefer two. With one year you'll have fewer lenders to choose from, so going to the right one first matters.
What lenders want to see
- One full year's accounts or your SA302 tax calculation plus tax year overview from HMRC.
- Context: lenders like a story that makes sense, e.g. you went self-employed in the same trade you previously worked in as an employee.
- Ongoing evidence: current contracts, invoices or an accountant's projection showing the income is continuing.
- Clean conduct: well-run bank accounts and credit file carry extra weight when trading history is short.
How income is assessed
Sole traders are assessed on net profit; limited company directors usually on salary plus dividends, though some lenders use salary plus retained profit share, which can make a big difference. With one year's figures, the lender uses that year rather than an average.
If you're a CIS contractor
Construction Industry Scheme workers are a special case, several lenders will work from CIS payslips/statements rather than accounts, often treating you more like an employed applicant. That can mean borrowing significantly more. See our CIS mortgages page.
"One year of accounts is workable far more often than people think, I place these cases regularly. The trick is matching how your income is structured to the lender that assesses it most generously, especially for company directors."
Related questions
This page is general information, not personal advice. Whether a mortgage is available and suitable depends on your individual circumstances. Lender criteria and rates change regularly. Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick answers
Do I need an accountant for a self-employed mortgage?
Not strictly, but lenders often want accounts from a qualified accountant or your HMRC tax calculations. An accountant's certificate can simplify some applications.
Will lenders average my income if my latest year is higher?
Many average two years, but some use the latest year alone where it's higher and the trend is sustainable - lender choice makes a real difference here.
Does being self-employed mean a worse mortgage rate?
No. You access the same products as employed applicants - the difference is how income is evidenced, not the rate.
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