One year self-employed? You may not have to wait three.
The myth that you need three years of accounts stops many capable buyers in their tracks. In reality, several lenders accept one year's accounts or a single SA302, and contractors can often skip accounts entirely by borrowing on their day rate. As a whole-of-market, FCA-authorised brokerage, we know which lenders lend at year one and how to present your figures to get the best outcome.
- Assessed onSalary + net profitRetained profit, not just dividends
- Accounts1–2 yearsLatest year or a two-year average
- Income multiple~4.5×Applied to assessed income
- EvidenceAccountant's certificateOften required to confirm profit
Why "you need three years" isn't true
Lender policies vary widely. Some want two or three years; others are comfortable with one full year of trading, especially where your background supports it — for example, doing the same work you did as an employee. The skill is matching your profile to the lenders whose criteria you already meet.
How lenders assess one year's figures
With one year's accounts, lenders typically use your latest SA302 / tax year overview or your limited company accounts, and may ask your accountant to confirm the position. Contractors can instead use contract-based underwriting — annualising the day rate — which sidesteps the accounts question altogether.
See getting a mortgage with one year of accounts and, for contractors, what is contract-based underwriting?.
Sole trader, limited company or contractor — where you fit
Sole traders and partnerships are usually assessed on net profit; limited company directors on salary plus dividends (or, with some lenders, salary plus retained profit — see retained profit mortgages for directors); contractors on day rate via contractor mortgages. Each route has different year-one lenders.
What you'll usually need
- One full year of accounts or SA302 + tax year overview
- Accountant's details (a reference may be requested)
- For contractors: current contract and CV
- Photo ID, proof of address, bank statements
Estimate your borrowing
Use the contractor mortgage calculator or speak to an adviser for a tailored figure.
Lenders that accept one year's figures — a selection
Lender guides: Halifax · Barclays · HSBC · NatWest · Nationwide · Accord · Clydesdale · Yorkshire BS · Kensington See how we place cases →
What salary plus retained profit can unlock
£132,000 × 4.5 = £594,000 indicative borrowing
On a salary-plus-dividends basis the same director might be assessed on roughly £42,000 — supporting far less.
Mortgages With One Year's Accounts, answered
Can I get a mortgage with only one year's accounts?+
Yes, with the right lender. Several accept a single year's accounts or one SA302, particularly where your experience supports the income, and contractors can often use their day rate instead.
Do all lenders require three years?+
No. Requirements range from one to three years. Matching you to a one-year-friendly lender is the whole job.
I'm a contractor with under a year trading — any options?+
Often yes. Contract-based lenders can lend on your day rate with little or no accounts, especially if you have relevant prior employment.
Will one year limit how much I can borrow?+
Not necessarily. Income multiples are broadly similar; the constraint is lender choice, not the multiple itself.
Does a lower first year hurt me?+
It can, but presentation matters — the right lender and a clear accountant's explanation often resolve a modest or one-off low first year.