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MortgageOS
Scenario Guide

Mortgage with One Year's Accounts

How to get a mortgage when you only have 1 year of self-employment history or company accounts — which lenders accept this, and how to strengthen your application.

Updated January 20269 min read

The 1-Year Situation

Having only one year of self-employed accounts puts you in a challenging but not impossible position. While many high street lenders require 2-3 years of trading history, there are options available if you know where to look.

3 years

Most conservative lenders

Fewest options

2 years

Most mainstream lenders

Standard requirement

1 year

Some lenders accept

Your position

It's about risk perception

Lenders want trading history because it demonstrates income sustainability. With 1 year, they have less evidence — but if that year is strong and you can demonstrate your business is solid, lenders will consider you.

Who Has 1 Year of Accounts?

  • New self-employed: Started your business 12-18 months ago
  • Recent incorporation: Formed Ltd company a year ago (may have prior sole trader history)
  • Career changers: Left employment to go self-employed recently
  • Contractors: Started contracting ~1 year ago

Lender Options

Building Societies

Most flexible

Many building societies accept 1 year of accounts with manual underwriting. They consider the full picture rather than just ticking boxes.

Yorkshire BS

1 year, case-by-case

Skipton

Self-employed friendly

Leeds BS

Regional focus

Nationwide

Some 1-year products

Specialist Lenders

Good options

Lenders who specialize in self-employed/contractor mortgages often have more flexible trading history requirements.

Kensington

Flexible criteria

Precise

Multiple products

Vida

Specialist focus

Aldermore

SME understanding

Contractor Specialists

If contracting

Contractor-specialist lenders may assess on day rate rather than accounts, potentially bypassing the 1-year limitation.

Examples: CMME, CLS Money (require current contract + 12 months history)

High street banks

Most mainstream high street banks (Barclays, HSBC, Lloyds) require 2-3 years of accounts. With only 1 year, focus your search on building societies and specialist lenders to avoid wasting time on unlikely applications.

What Strengthens Your Application

1. Strong First Year Performance

A strong year of trading with good profit demonstrates your business is viable. Lenders are more comfortable with 1 year of £60k profit than 1 year of £20k profit.

2. Prior Experience in Same Field

If you were previously employed in the same industry, this demonstrates you have the skills and knowledge for your business. An electrician who goes self-employed as an electrician is lower risk than a complete career change.

3. Contracts or Pipeline

Current contracts, retainer agreements, or evidence of future work shows your income will continue. This provides forward-looking assurance beyond historical accounts.

4. Larger Deposit

A larger deposit (15-25%+) reduces lender risk and opens more options. With 1 year of accounts, maximizing your deposit can offset the limited trading history.

5. Clean Credit History

Excellent personal credit helps compensate for limited business history. Ensure your credit report is clean and optimize your score before applying.

6. Accountant Support

An accountant letter confirming your business performance, sustainability, and projected income adds credibility. Some lenders specifically request this.

Documentation Required

Standard 1-Year Application

Income Evidence

  • • SA302 for your first full year (if sole trader)
  • • Tax year overview
  • • Certified company accounts (if Ltd)
  • • Current contracts or client evidence

Supporting Evidence

  • • Business bank statements (6-12 months)
  • • Personal bank statements (3-6 months)
  • • Accountant letter/reference
  • • Projections (if available)

If Prior Experience Relevant

  • • CV showing industry experience
  • • Previous employment P60s/payslips
  • • Professional qualifications
  • • References (if helpful)

Over-prepare

With limited trading history, provide more supporting evidence than you think necessary. A comprehensive application with strong supporting documents helps offset the shorter trading history.

Strategies

Strategy 1: Apply Now with 1-Year Lenders

If you need a mortgage soon, target lenders who accept 1 year of accounts. A broker can identify these and help present your application strongly.

Best for: Urgent timeline, strong first year, good supporting evidence

Strategy 2: Wait for Second Year

If timing allows, waiting until you have 2 years of accounts significantly expands your options. More lenders, potentially better rates.

Best for: Flexible timeline, no urgent need to move

Strategy 3: Use Contractor Assessment

If you're contracting with a current contract, some lenders will assess on day rate rather than accounts — bypassing the history requirement.

Best for: Contractors with strong current contract

Strategy 4: Joint Application

If you have a partner with employed income, their income may be enough for the mortgage alone, or reduce dependence on your 1-year self-employed income.

Best for: Couples where one has stable employed income

Strategy 5: Higher LTV Now, Remortgage Later

Accept a higher LTV (and potentially higher rate) now from a 1-year lender, then remortgage to a better deal once you have 2-3 years of history.

Best for: Time-sensitive purchases, willing to accept short-term higher costs

Options exist

One year of accounts isn't ideal, but it's not a barrier. With the right lender and strong application, you can get a mortgage. The key is knowing where to look and presenting your case well.

Find lenders accepting 1 year's accounts

Get matched with lenders who work with newer self-employed applicants.

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Frequently asked questions