Mortgage With 1-Year Accounts

Updated 20th November 2021.

Self-Employed Mortgage with 1 Year Accounts Mortgage Advisors.


Our Mortgage Experts Online accredited advisors are specialists in 1-year self-employed mortgages. Furthermore, our expert’s knowledge will help you to find the right 1-year self-employed mortgage on the market.

From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there. subsequently, this may feel completely overwhelming to you and you may have no idea where to start.

We can offer you guidance and help you navigate the complex world of 1-year self-employed mortgages.

In addition, the brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.

If you are looking for an self-employed mortgage advisor, fill out a contact form online or call us now on 0300 124 5655.

Scroll down for more information and FAQ’s about 1-year self-employed mortgages.

Mortgage with 1-Year Accounts Topics.

I haven’t finished my first-year trading, can I get a mortgage?

If you haven’t completed a tax return for your first year, then no high street lenders will lend to you if you’re looking for a 1 year accounts mortgage.

Generally, there are a couple of specialist lenders that might consider a self-employed mortgage without you having finished your first year’s trading.

Self-employed mortgage 1 year accounts didn’t exist because the lender would have to evidence that they have approved the mortgage responsibly. There are now 1 year accounts mortgage specialist lenders who have taken a different approach to lending.

If you have been trading for 10 months then it is possible to get a decision agreed in principle based on your earnings, you can then look for properties and be in position to put an offer in. You would not be able to submit a mortgage application until you have the 12 months to evidence the income.

So, if you think you’ll earn 40k, they can enter this figure to get a decision based on your accounts showing this figure when they are completed.

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Can I get a self-employed mortgage with 1-year accounts if I have bad credit?

Bad credit mortgages with one year’s accounts are possible through a select number of lenders.

However. due to the previous bad credit the amount of deposit required would be a minimum of 15%, in addition, the interest rate will be slightly higher than high street rates to reflect the risk to the lender.

Hence, the more deposit you have the better chance of being accepted for a self-employed mortgage 1 year accounts.

As with any mortgage application the severity of the adverse credit will determine which options would be available.

To read all about bad credit mortgages click here

Can I get a self-employed mortgage 1-year accounts on the high street?

There are options with high street lenders with one year’s trading, this is very much down to underwriter referral and loan to value dependent.

Once again using a specialist 1 year accounts mortgage broker with in-depth knowledge is the key to getting these mortgages approved.

It will help if you have previous experience in the same line of work. For example being a recruitment consultant for 5 years and then setting up a recruitment business.

The lender could then see some background before you started the business.

Why is it harder to get a mortgage with 1-year accounts?

When looking for a 1 year accounts mortgage its more difficult. With only 1 year’s accounts this is only a short space of time and perceived as more risk to the lender.

The days of self-certified mortgages are long gone. Once upon a time you could just tell the bank what you earned, and they would lend on that basis.

The difficulty people with 1 year’s accounts have is getting the amount they need to borrow. With any new business there are start-up costs and these are particularly true in the first year.

The number of new businesses which are starting up and people going self-employed is rising.

What evidence will I need to show for my mortgage?

Depending on your trading style, if you are a sole trader or working in a partnership, it will be your net profits. You can show this by either tax calculation & tax overview or certified accounts.

Mortgages for limited company directors will mainly be assessed salary & dividend. However, some lenders will use the net profit and require the accounts to be certified by a charted accountant or similar qualification.

You can download your tax calculation & tax year over by clicking here.

How does a mortgage lender calculate how much can I borrow?

The information used to calculate your income will vary from lender to lender, some will work off salary & dividends or salary & net profits. Likewise, others will look at day rate or contract values for contractors trading under a limited company.

To begin with, all lenders will need to see your tax calculations & tax year overviews. Your accountant can provide these, or you can contact HMRC direct. Some lenders will also request an accountant’s certificate.

This will be to check that the business is sustainable, with this some lenders requiring the accountant to have certain qualifications.

Subsequently, for a self-employed mortgage 1 year accounts any lender will need to be sure that the business is sustainable.

Will the nature of my business affect my mortgage application?

Possibly, since the COVID outbreak the nature of your business has become more important to mortgage lenders. Industries which were hardest hit such as hairdressers and beauty therapy are now being closely looked at.

This is to ensure that the businesses are back to running at the same levels as before the pandemic.

That being said, if your income meets the lenders affordability criteria there should be no reason to not being accepted for a mortgage.

Can I remortgage with 1-year accounts?

Yes, the process is exactly the same as a normal purchase. The obvious difference is the equity in your property will be used as the deposit. All other factors such, credit history, affordability will be assessed in the same way.

Because you already own the property the time taken to complete a remortgage is generally much quicker.

If a remortgage isn’t possible then most lenders do have a product transfer option available, speak to one of out mortgage experts to find out more.

Speak to a self-employed 1-year accounts mortgage advisor.

There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or cannot borrow what they need. However, just because one lender has declined you, don’t give up.

Our self-employed mortgage 1 year accounts experts will look at each case before deciding which lender is right for you and your individual circumstances.

All the self-employed mortgage 1 year accounts brokers we work with are whole of market and offer unbiased advice.

They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.

Therefore, the brokers we work with have experience in dealing with all aspects of self-employed mortgages with 1 year’s accounts. Coupled with our experts will be using the whole of the market to access the very best deals available.

To find out how we can help call us on 0300 124 5655 or complete our quick enquiry form to speak to a mortgage expert.

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