Self-Employed

Can I Get a Mortgage With Only One Year’s Accounts?

Published: 19th October 2026•7 minute read•By Beth Thomas

Beth Thomas providing self-employed mortgage advice in Swansea

Yes, it may be possible to get a mortgage with only one year’s accounts. However, not every lender will consider an application with such a short trading history, and having traded for twelve months is not always the same as having a completed year of accounts that a lender can use.

The options available will depend on how your business is structured, the income shown in your accounts, your previous experience, your deposit, credit history, monthly commitments and the lender’s own criteria.

If you are newly self-employed in Swansea, elsewhere in South Wales or across the UK, this guide explains what lenders may assess and how preparing properly can help.

Can you get a mortgage with one year’s accounts?

Some lenders will consider a mortgage application after one full year of self-employment. Others normally require two or more years of accounts or tax returns before they will consider the income.

This means that a one year self-employed mortgage is not automatically available to everyone, but neither should you assume that you must wait another year before asking for advice.

Lenders that consider shorter trading histories may look more closely at the application as a whole. They may want to understand your previous employment, experience in the same industry, current business performance and whether your income appears sustainable.

The lender may also request additional evidence, such as business bank statements, an accountant’s projection, contracts, invoices or evidence that the business has continued trading since the accounts were completed.

One year’s trading is not always the same as one year’s accounts

This is an important distinction.

You may have been running your business for twelve months but not yet have a complete set of finalised accounts or a submitted tax return covering a full trading period. In that situation, some lenders may not yet have the evidence they require to use your self-employed income.

A completed year of accounts normally means that your trading figures have been finalised for an accounting period. Depending on your business structure and the lender, the evidence might include finalised business accounts, a tax calculation, an SA302 and a corresponding tax year overview.

Management figures or projected income can sometimes help a lender understand how the business is performing, but they may not replace the completed income evidence required for affordability.

Before applying, it is helpful to establish exactly which financial period your available documents cover and whether they meet the chosen lender’s criteria.

What will a lender assess?

A lender will not assess the length of time you have been self-employed in isolation. It will consider the wider strength and affordability of the application.

Your business structure

The way your income is assessed will depend partly on whether you are a sole trader, partner, limited company director or contractor.

For a sole trader, lenders commonly consider the net profit shown in the relevant tax calculations or accounts. For a partnership, they may consider your share of the partnership profit.

If you are a limited company director, some lenders assess your salary and dividends. Others may be able to consider your share of the company’s profit, depending on their criteria and the evidence available.

Contractors can be assessed differently again. Some lenders may consider a contract rate rather than relying entirely on completed accounts, but requirements vary according to the type of contract, work history and lender.

You can learn more about these differences on our self-employed mortgage advice in Swansea page.

Your income

The lender will need to establish an income figure that it considers reliable and sustainable.

With only one completed year available, there is no longer trading history against which to compare the results. A lender may therefore look more closely at how the income was generated and whether the business appears likely to continue supporting that income.

A strong first year can be helpful, but it does not guarantee that the whole figure will be accepted. Equally, a modest first year does not necessarily mean that no options exist. The lender’s assessment will depend on its criteria and your wider circumstances.

Your previous experience

Your work history before becoming self-employed can be relevant. If you previously worked in the same profession or industry, this may help demonstrate that your business is supported by relevant experience.

For example, someone who has worked as an employed electrician for several years before starting their own electrical business may be viewed differently from someone entering an unfamiliar industry for the first time.

This does not create a guarantee of acceptance, but it can form part of the lender’s overall assessment.

Whether the income appears sustainable

Lenders need to consider whether the mortgage is likely to remain affordable, not only whether the business produced income during its first year.

They may review recent business bank statements, ongoing contracts, invoices, current trading activity or an accountant’s projection. The evidence required will vary, and not every lender will use projected income for affordability.

Your deposit and loan to value

Your deposit affects the percentage of the property value you need to borrow. This percentage is known as the loan to value, or LTV.

A larger deposit may provide access to a wider choice of mortgage products, but it does not override the need to demonstrate acceptable income and affordability. The property, credit assessment and lender’s criteria will still matter.

Your credit history and monthly commitments

Being self-employed does not automatically damage your credit profile. Lenders will, however, review your credit history and existing commitments in the same way they would for other applicants.

Credit cards, loans, car finance, childcare, maintenance payments and other regular costs can affect how much a lender considers affordable.

Recent missed payments, defaults or other credit issues may reduce the range of available options, particularly when combined with a short self-employed trading history. This does not always mean that a mortgage is impossible, but it makes lender selection and timing especially important.

What documents might you need?

The exact requirements will depend on the lender and your business structure, but you may be asked for:

Your latest tax calculation or SA302
The corresponding HMRC tax year overview
Finalised business accounts where applicable
Recent personal bank statements
Recent business bank statements
Proof of identity and address
Evidence of your deposit and where it came from
Details of loans, credit cards and other financial commitments
Evidence of previous employment or industry experience
Current contracts, invoices or details of ongoing work where requested
An accountant’s projection or reference where required

Providing more documents does not guarantee acceptance, but having the correct evidence available can reduce delays and help ensure that the application is assessed accurately.

Do your accounts need to be prepared by an accountant?

Some lenders require or prefer accounts prepared by an appropriately qualified accountant. Others may accept HMRC tax calculations and tax year overviews, depending on the applicant and business structure.

Where an accountant’s projection or reference is requested, the lender may also have rules about the accountant’s professional qualifications.

It is therefore sensible to check the intended lender’s requirements before paying for additional documents or submitting an application.

Can a limited company director get a mortgage with one year’s accounts?

It may be possible, but lender criteria can differ significantly for limited company directors.

Some lenders use the director’s salary and dividends. Others may consider the applicant’s share of company profit where their criteria allow it. The lender may also consider the applicant’s shareholding, current business performance and whether leaving profit inside the company is necessary for the business to operate.

This can make a substantial difference to the income figure used for affordability. Choosing a lender purely because it accepts one year’s accounts may not be enough. Its method of assessing the company income must also suit the way you pay yourself.

Does having only one year’s accounts mean paying a higher interest rate?

Not automatically.

The interest rate and mortgage products available will depend on several factors, including your deposit, credit history, affordability, the property and the lenders whose criteria you meet.

Having only one year’s accounts may reduce the number of lenders available, but it does not automatically mean that you will be charged a particular rate. It is important to compare the overall mortgage, including the interest rate, fees, incentives and suitability for your circumstances.

Should you wait until you have two years’ accounts?

Not necessarily. Waiting could provide a longer financial history and potentially increase the number of lenders willing to consider the application. However, there may already be options based on your current position.

Before deciding to delay your plans, it can be useful to have your accounts and circumstances reviewed. You can then understand whether applying now may be realistic, whether waiting is likely to improve your position or whether there are practical steps to take first.

An initial conversation does not commit you to making a mortgage application. It can simply help you make an informed plan.

How Cariad Mortgage Solutions can help

At Cariad Mortgage Solutions, we take a holistic approach to mortgage advice. We are about putting people first and products last.

We look beyond the mortgage product itself and take time to understand your business, income, commitments, deposit, credit history and plans for the future. Where you have only one year’s accounts, we can review the evidence available and identify lenders whose criteria may suit your circumstances.

Our support also goes beyond arranging the mortgage. We can guide you during the house-hunting process, help with arranging and presenting offers to estate agents, assist you in finding solicitors and surveyors and communicate with the lender and the other professionals involved.

We remain by your side throughout the process, right through to completion and beyond. Even after you have collected the keys, we will continue to be a point of contact when you need us.

We are based on Walter Road in Swansea and support self-employed clients throughout South Wales and across the UK.

Mortgage advice with heart.

Ready to discuss your circumstances?

If you are self-employed and wondering whether one year’s accounts could be enough, you do not need to work it out alone.

You can:

We will listen to your circumstances, explain what may be realistic and help you understand the next step.

Frequently asked questions

Can I get a mortgage with only one year’s accounts?

It may be possible. Some lenders consider applicants with one completed year of self-employed trading, while others require two or more years. The options available will depend on your income evidence, business history, deposit, affordability, credit profile and the lender’s criteria.

Is twelve months of self-employment enough for a mortgage?

Having traded for twelve months may not be enough on its own. A lender may require a completed and finalised year of accounts, a submitted tax return or other specific evidence. It is important to check what financial period your documents cover before applying.

Can I get a mortgage if my first accounts have not been finalised?

Your options may be more limited if your first accounts or tax return have not been finalised. Some lenders may review additional information, but projections and management figures do not always replace the completed income evidence needed for affordability.

What income will a lender use if I am a sole trader?

Lenders commonly assess a sole trader using the net profit shown on their tax calculations or accounts. The exact evidence and calculation will depend on the lender.

How will a lender assess me as a limited company director?

Some lenders assess salary and dividends, while others may consider a director’s share of company profit where their criteria allow it. Your shareholding, company performance and the way you take income from the business may all be relevant.

Do I need a bigger deposit with only one year’s accounts?

Not in every case. Deposit requirements vary between lenders, products, properties and applicants. A larger deposit may widen the options available, but income, affordability and credit criteria will still need to be met.

Will being newly self-employed affect how much I can borrow?

It can. The amount available will depend on the income a lender is willing to accept, along with your commitments, deposit, credit history and mortgage term. Different lenders may reach different affordability figures using the same accounts.

Should I speak to a mortgage adviser before my accounts are ready?

Yes, you can ask for advice before you are ready to apply. An early conversation can help you understand which documents may be required, whether your likely timescale is realistic and what you can do to prepare.

Would you like help understanding your mortgage options?

If you are newly self-employed or have one completed year of accounts, we can review the evidence available and explore lenders whose criteria fit your circumstances.

Book an Initial Consultation Contact Our Office