Self Employed with One Years Accounts

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Self-employed and one year of accounts

If you are newly self employed and only have one year of accounts, you may find it more difficult to get a mortgage. Lenders need to know that your income is stable and consistent so that they can assess your ability to repay the mortgage and for that reason, most lenders will want you to have been self-employed for at least two or three years.

However, there are a handful of lenders that will lend with only one year of accounts. The rates of these lenders are generally less competitive and the fees may be higher. There are a couple of high street lenders who will also accept applications with only one year of accounts, but you must have a history of working in the same line of work before becoming self-employed and their criteria is very specific so not everyone will be eligible.

How do I prove my income with one years of accounts?

Proving your income when you only have one year history of accounting history available can be challenging and you may need to provide additional evidence to demonstrate the financial stability of your business. This may be done by providing evidence of consistent income through bank statements, or asking your certified accountant for a reference or projections of your accounts to demonstrate that the income is sustainable.

Here at The Mortgage Masters, we specialise in Self-Employed Mortgages so we know exactly how to present a strong case to the lender for mortgage success!

What Documents do I need to provide for a Self-Employed Mortgage?

When you’re self-employed, the documents you need to provide to prove your income may vary depending on your business structure, but you will always need to provide the following:

• Photo ID

• Proof of address (e.g. Council Tax or Utility bill)

• 3 months bank statements

• Evidence of deposit (e.g. statements from your savings or investment accounts)

• A copy of your Check my File credit report- click here to get a copy. You can cancel the subscription at any time but beyond the 30 day free trial, the service is charged at £14.99 per month.

• A copy of your mortgage statement (if applicable)

• Details of any existing property portfolio (if applicable)

• Proof of income

Proof of Income Documents required are as follows:

Limited Company Directors

• Certified accounts

SA302 Tax Calculations

• HMRC Tax Year Overviews

• 3 months business bank statements

• An accountants reference or income projections may also be requested depending on the lender.


If you own more than 25% of a business, your share of company net profits may be used for affordability. In this instance, you will be required to produce the same documentation as the Limited Company Directors above.

Sole Traders or Freelancers

• SA302 Tax Calculations

• HMRC Tax Year Overviews

• 3 months business bank statements


• Certified Accounts

• SA302 Tax Calculations

• HMRC Tax Year Overviews

• Proof of ongoing work, such as signed contracts from clients, may also be requested.

How can I Improve my mortgage chances with only one year of accounts

• The bigger the deposit, the better the mortgage chances as the lender will see the case as lower risk due to there being more equity in the property you are purchasing.

• Keeping your Business Bank Statements separate will help to show your income more clearly and make it easier to present your case to the lender.

• Having a good credit profile can certainly increase you mortgage chances. In order to apply for a high street product with only one years of accounts, you will need an excellent credit history,. If you have a bad credit, you may still have options but these are likely to be on much less competitive rates.

• Speak To The Mortgage Masters! Lender’s criteria can vary hugely from lender to lender. We specialise in mortgages for the self-employed. Our in-depth knowledge of lender criteria means that we know which lender will view your income in the best possible light and therefore know who to approach.

Your home may be repossessed if you do not keep up with repayments on your mortgage

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