Getting a 1 year accounts mortgage is more realistic than many people think. More lenders now consider applicants with 1 yearโs accounts, including some mainstream lenders. If youโre self employed, you can still get a mortgage with the right support and preparation. At Jones & Young, our focus is on helping clients present strong applications that suit their individual circumstances.
In the past, most lenders wanted several years of history before approving a mortgage application. Today, some will accept just one yearโs accounts if the rest of your profile is solid. This guide explains how lenders assess self employed income, what documents youโll need, and how to improve your chances of approval.
Mortgages for Self Employed with 1 Yearโs Accounts
More self employed people are now able to get a mortgage with 1 yearโs accounts. In the past, most mainstream lenders would not consider this. Today, both specialist lenders and some most mainstream lenders may review applications with a shorter history. This has opened the market to more self employed applicants, including freelancers, a sole trader, and those with a limited company.
Lenders still treat these cases with care, as just one yearโs accounts can be seen as higher risk. They will look closely at your annual income, net profit, and how stable your business appears. Some may also review projected income or trends within the same tax year. With the right support, many self employed borrowers can still access a suitable mortgage.
What Is a Self Employed Mortgage?
There is no specific product called a self employed mortgage. If approved, you will access the same deals as those applying for employed mortgages. The difference is how mortgage lenders assess your income and overall application.
For self employed individuals, lenders cannot rely on payslips. Instead, they review your self employed income, tax calculations, and bank statements. This helps them understand how much you earn and whether you can afford mortgage repayments. While the end product is the same as a standard mortgage, the mortgage application process is more detailed for the self employed.
Can You Get a Mortgage with Just One Yearโs Accounts?
Yes, it is possible to get a mortgage with just one yearโs accounts, but it depends on your individual circumstances. Some mortgage lenders are open to this, especially specialist lenders who understand self employed income.
Because there is less history, lenders may see this as a higher risk. They will look closely at your current income, net profit, and any signs your income is stable. A stronger application can improve your chances, especially if you can show consistent earnings within the same tax year.
Why Lenders Ask for More History?
Lenders now carry out stricter checks than they did in the past. Before the financial crash, some applicants used projected income to borrow more than they could afford. This led to missed mortgage repayments and repossessions.
Today, lenders focus on verified income and affordability. This means your mortgage application must show clear evidence of earnings. For self employed applicants, this often includes:
Tax calculations and a tax year overview
A corresponding tax year overview to confirm figures
Bank statements to show income and spending patterns
These checks help lenders decide if your monthly repayments are manageable.
Eligibility Criteria for a 1 Year Accounts Mortgage
Lenders will assess several key areas before approving your mortgage.
Proof of Income and Tax Documents
Lenders need clear proof of income before approving a mortgage. This usually includes tax calculations and a tax year overview from your latest tax return. Some may also request your self assessment tax return to confirm how you declare income.
If you only have one yearโs accounts, accuracy is key. Lenders will review your annual income and how consistent it appears across the tax year.
Accounts and Business Records
You may need to provide finalised accounts or certified accounts. These are often prepared by a qualified accountant or registered accountant. This gives lenders more confidence in your figures.
Lenders will assess:
Your net profit
Any retained profits within a limited company
The overall strength of your business structure
This helps them understand how your income is generated.
Bank Statements and Business Activity
Your bank statements and business bank statements give lenders a clear view of your finances. They use these to check income, spending, and consistency.
They may look for:
Regular income matching your declared figures
Evidence of current income
Signs of stable trading and realistic income projection
Credit History and Credit Report
Your credit report plays a key role in your application. Lenders will review your credit history to understand how you manage borrowing.
A good credit score or clean credit history can improve your chances. If you have adverse credit, bad credit, or other credit issues, you may still be accepted, but terms could differ.
Deposit and Property Value
Your deposit affects how much you can borrow. Many lenders require at least 5%, but a larger deposit size can help.
A stronger deposit can:
Reduce the lenderโs risk
Improve your maximum loan size
Give access to better interest rates
Lenders will also consider the property value when assessing your application.
Is It Harder to Get a Mortgage with One Yearโs Accounts?
It can be harder to get a mortgage with one yearโs accounts, but it is not out of reach. Many high street lenders prefer a longer track record, which is why some most mainstream lenders may decline these cases.
This is where specialist lenders can help. They are more open to self employed cases with just one yearโs accounts. In some situations, you may be offered a higher interest rate due to the shorter history. Working with a specialist mortgage broker can improve your chances by matching you with the right lender.
What Mortgage Lenders Look For?
When reviewing a mortgage application, mortgage lenders assess several key areas to decide if you can afford the loan.
They will look at:
Your income and employment status, including self employed income
Your credit history and overall financial behaviour
Your ability to manage monthly repayments and mortgage repayments
Your deposit size and how it compares to the property value
Your business type and business structure
Your existing financial commitments and debts
These checks help lenders understand your situation and decide if lending is suitable.
How to Improve Your Chances of Getting Approved?
There are a few simple steps you can take to strengthen your application.
Work With a Mortgage Broker
A mortgage broker can help you find lenders that suit your situation. A specialist mortgage broker understands how self employed applicants are assessed and can offer clear mortgage advice.
Increase Your Deposit
A larger deposit size can reduce risk for lenders. A good deposit may also help you access competitive rates and avoid less favourable deals.
Prepare Strong Accounts
Make sure your finalised accounts are accurate and up to date. Using a qualified accountant can improve how your income is presented to lenders.
Avoid Unnecessary Credit Searches
Too many checks on your credit report can affect your score. Avoid unnecessary credit searches before starting your mortgage application.
Wait for Another Tax Year
If possible, waiting another tax year can strengthen your profile. An extra tax return can make it easier to apply with more than one yearโs accounts.
Use Our Self Employed Mortgage Calculator
If you want to get a mortgage, our calculator can give a quick estimate. It helps you understand what you may be able to borrow before starting a full mortgage application. This can be useful if you only have 1 yearโs accounts and want an early idea of your options.
About Jones & Young
At Jones & Young, the focus is on helping clients get a mortgage that suits their situation. As a specialist mortgage broker, the team supports a wide range of self employed cases, including those with one yearโs accounts.
Clear mortgage advice is provided at every stage. This includes support with your mortgage application and access to lenders who understand self employed borrowers. The aim is to keep the process simple and focused on your needs.
If youโre ready to move forward, contact us to discuss your options and next steps.
FAQs
Below are some of the most common questions about self employed mortgages.
Can you get a mortgage with 1 year self employed?
Yes, some mortgage lenders will consider self employed applicants with 1 yearโs accounts. This depends on your income, credit history, and overall profile.
Do you need 2 or 3 years to get a mortgage?
Many lenders prefer a longer history, but it is not always required. Some will accept one yearโs accounts if the rest of your application is strong.
How many bank statements do you need?
Most lenders will ask for at least three months of bank statements. In some cases, they may also request business bank statements to review income and spending.
Can you get a mortgage with bad credit?
It is still possible to get a mortgage with bad credit. Some lenders specialise in adverse credit, though you may be offered different interest rates.
Do self employed borrowers pay higher interest rates?
Not always, but some self employed borrowers may be offered higher interest rates. This depends on risk, income history, and the lenderโs criteria.
