If you’re newly self-employed and looking to buy a home, you might be wondering whether one year of trading is enough to get a mortgage.
While most lenders prefer two or more years of accounts, the good news is that it is possible to get a mortgage with just one year of self-employment, but you’ll need to come prepared.
At Jones & Young, we specialise in helping self-employed professionals, freelancers and company directors find sensible mortgage options, no matter how long you’ve been working for yourself.
What Do Lenders Normally Ask For?
Typically, lenders prefer to see two or more years of self-employed income. This helps them assess your earnings over time and see a pattern of stability. But that doesn’t mean you’re out of luck if you only have one year of accounts.
| Criteria | Standard Mortgage Applicants | One-Year Self-Employed Applicants |
|---|---|---|
| Minimum trading history | 2-3 years | 1 full year (some lenders) |
| Documents required | Payslips, P60 | SA302s, Tax Year Overviews, accounts, bank statements |
| Deposit needed | From 5% | Typically 15%+ |
| Lending options | Broad | More limited, but available |
| Income assessment | Basic salary | Profits, salary, dividends (if Ltd Co) |
Some lenders are open to applicants with one year of trading, but they’ll look closely at the overall strength of your application; including your deposit, credit history, and the nature of your work.
What Documents Do I Need?
If you’re applying for a mortgage with just one year of self-employment, having the right documentation is key. You’ll usually need:
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Your latest SA302 and Tax Year Overview from HMRC
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Certified accounts prepared by a qualified accountant
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Recent personal and business bank statements (usually 3-6 months)
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Proof of ongoing work or contracts (if relevant)
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Proof of ID and address (as with any mortgage)
The more clear and consistent your paperwork is, the better. Lenders want to know that your business is viable and your income is sustainable.
How Can I Strengthen My Application?
Even with one year of trading, you can still make a strong case to a lender. Here are a few tips to help improve your chances:
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Use a qualified accountant. Well-prepared accounts carry more weight with underwriters.
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Save a larger deposit. The more you can put down, the less risky you look to a lender.
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Keep your credit clean. Pay off debts where possible and avoid missed payments.
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Show ongoing work. If you’ve got contracts or repeat clients lined up, that’s a big plus.
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Avoid big changes. Lenders prefer stability, so steer clear of major shifts in income or business structure until after the mortgage is sorted.
Which Lenders Offer Mortgages With One Year of Accounts?
While most high street banks still prefer two or more years of accounts, there are a growing number of specialist lenders who will consider self-employed applicants with just one year of verified income.
Some of these lenders work exclusively through brokers, which is where having someone in your corner who understands self-employed mortgages really pays off.
Is It Worth Waiting Until You Have Two Years?
In some cases, yes. If waiting another 6-12 months will give you a second year of accounts and open up more options (and potentially better rates), it might be the right call. But if your current circumstances are strong — say you’ve got a healthy deposit and solid ongoing work — it may be worth applying sooner.
It all comes down to your individual situation, and that’s where tailored advice really matters.
Speak to a Broker Who Gets It
Getting a mortgage when you’re self-employed isn’t impossible. It just takes the right approach and a bit of forward planning. At Jones & Young, we help freelancers, contractors and business owners across the UK find lenders who look beyond the payslip.
If you’ve got one year of trading and are wondering what’s possible, get in touch. We’ll talk through your situation and help you figure out your best next step.
