Mortgages with one year of accounts
You filed your first SA302 or your first set of company accounts. The right lender will look. Pricing is slightly higher, the case is genuinely placeable.
Most high-street lenders ask for two years of self-employed accounts. A small but real specialist tier will look at one year, especially where you converted from employment in the same field. The case is placeable, the rates are typically a little higher than mainstream, and the documentation is heavier. The right lender unlocks borrowing comparable to a two-year-accounts case.
Who this is for
- You have one full UK tax year of self-employed trading.
- You converted from employment to self-employment in the same line of work.
- You have a strong professional CV and a clear forward pipeline of work.
- A high-street lender has declined you because of the one-year history.
One-year-accounts mortgage lending is its own niche. The lender pool is roughly six to ten lenders depending on profile, sector, and structure. Pricing sits 20 to 60 basis points above the equivalent two-year-accounts deal. The case is normally underwritten manually rather than on automated decision systems.
What lenders need to see
One full SA302 and tax year overview, or one filed set of company accounts plus the latest personal SA302. A clear pre-self-employment CV showing the same line of work for at least two years, often longer. A current contract, retainer or pipeline of confirmed work. Three months of business and personal bank statements showing income flowing in.
Why the same line of work matters
Lenders treat a former NHS nurse who is now contracting as a nurse very differently from someone who left a marketing role to open a coffee shop. The first reads as continuity of income. The second reads as a career change with a higher risk of failure. We brief you on which side of that line your case sits.
Worked example
Software engineer who left a permanent £75,000 PAYE role last spring and now contracts in the same field at a £500 day rate. SA302 for the partial-year covers six months of self-employment with £55,000 of net profit. A specialist one-year-accounts lender will annualise the half-year evidence, cross-check it against the day rate, and produce an AIP. Many high-street lenders will not.
Pricing and rate impact
One-year-accounts rates run 20 to 60 basis points above mainstream pricing. On a £300,000 mortgage at a 30-year term, 0.4 percentage points is roughly £65 a month. The premium is real but rarely the deciding factor on whether to apply now or wait twelve months for a second tax year.
Common pitfalls
A first SA302 with very low net profit because of heavy first-year expenses (equipment, marketing, vehicle). A change of trading structure (sole trader to limited company) within the first year, which fragments the evidence. A short pipeline forward. We model around these issues rather than ignore them.
How Major Money Matters helps
Specific things we do for this case type. No generic platitudes.
Identify the genuine one-year-accounts lenders
A handful, not all of the big high street. We start where the case will be welcomed.
Build the continuity-of-work narrative
CV, prior employment evidence, current contracts. We package the case so the underwriter sees a clean career thread.
Model the now-or-wait decision
Buying now at a slightly higher rate, versus waiting twelve months. We run the numbers both ways.
Handle structure changes mid-year
Sole trader to limited company is common. We pick lenders that take the change in stride.
Frequently asked questions
Can I really get a mortgage with only one year of accounts?
Yes. A specialist tier of lenders will look at one year, particularly where you converted from employment in the same field. The case is normally underwritten manually and rates are slightly higher than mainstream.
How much higher are rates on one-year-accounts deals?
20 to 60 basis points above the equivalent two-year-accounts rate, depending on the lender and the profile.
What if my first year shows very little net profit?
A first-year SA302 with low net profit because of heavy start-up expenses is common. Some lenders will look past it to your contract pipeline and CV. We assess each case individually.
Should I just wait until I have two years?
Not always. Sometimes buying now at a slightly higher rate is cheaper than waiting twelve months and paying rent in the meantime. We model the comparison and tell you which is better in your situation.
I changed from sole trader to limited company in year one. Can lenders combine the evidence?
A small group will. The case needs careful packaging because the structure change fragments the SA302 thread. We have placed cases like this before.
Related
Closest siblings to this scenario. Worth a read.
Mortgages for sole traders
Net profit on the SA302. The right lender depends on trading history and profit trend.
Read moreMortgages with two years of accounts
Mainstream lender pool, often the most suitable rates. Choice of method (average, lower-of-two, latest year).
Read moreDocuments needed for a self-employed mortgage
The practical evidence list for sole traders, directors, contractors, freelancers and LLP partners.
Read moreWhat our clients say
Real reviews from clients across Romford and Essex, verified on Google.
Rated 5.0 out of 5 from 92 Google reviews Read the reviews on Google
Talk to a one-year-accounts specialist
A quick 15-minute call tells you which lenders will look at your case and what they will lend.
Named adviser, wherever possible. No call centre. We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm, weekend appointments on request.