Can Self-Employed Borrowers Get a Mortgage with Only 1 Year of Accounts in 2026?

TLDR

• Yes, some lenders will accept 1 year of accounts
• A strong SA302 and accountant reference significantly help
• Deposit size can influence lender choice
• Industry background and previous employment matter
• Not all lenders offer this option

The Traditional Rule

Historically, most mortgage lenders required:

• 2 to 3 years of trading history
• Consistent or increasing profits
• A stable and well-established business

This was designed to reduce risk and ensure income sustainability. However, the market has evolved.

The 2026 Reality

In 2026, several specialist lenders will now consider applications with:

• 1 full year of accounts
• 12 months of trading history
• Strong current-year projections

Particularly where the applicant has:

• Previous employment in the same industry
• A strong deposit of 10% or more
• A clean credit profile
• Clear and structured accounts prepared by a qualified accountant

Lenders are increasingly focusing on income sustainability and sector stability rather than just the number of years trading.

What Documents Are Required?

If you are applying with only 1 year of accounts, expect lenders to request:

• SA302 tax calculation
• Tax year overview from HMRC
• Full annual accounts
• Business bank statements
• Accountant’s reference or certificate of income confirmation

Preparation and presentation are critical in these cases.

Real Case Example

We recently supported a self-employed IT contractor who moved from working under an umbrella company to operating through a limited company. At the point of application, he had only 1 year of trading history via his LTD company. Many high street lenders required a minimum of 2 years. We placed the case with a specialist lender that accepted 1 year of accounts and sustainability letter from the accountant. The lender used 100% of net profit for affordability assessment. The mortgage offer was issued in less than 10 days. This demonstrates that structure, preparation and lender selection make a significant difference.

When Is It More Challenging?

Getting approved with 1 year of accounts can be harder where:

• Profits are declining
• Income relies heavily on dividends with low retained profit
• There is adverse credit history
• The business operates in a volatile or seasonal sector

In these cases, a larger deposit or stronger supporting evidence may be required.

Key Takeaway

Yes, it is possible to secure a mortgage with only 1 year of accounts in 2026. However, lender choice, document quality and professional packaging of the application are essential. Working with a broker who understands specialist lender criteria can significantly improve your chances.

FAQs

1. Can I get a mortgage with only 12 months of trading?

Yes, some lenders will consider it, subject to income stability and credit profile.

2. Do I need a bigger deposit if I only have 1 year of accounts?

Often yes. A 10% deposit or higher can improve lender options.

3. Will lenders use net profit or dividends?

It depends on the lender. Some use net profit; others use salary plus dividends.

4. Does my previous employment help?

Yes. If you worked in the same industry before becoming self-employed, it strengthens your case.

5. Are high street banks or specialist lenders better?

Specialist lenders are usually more flexible, but rates and criteria vary.

FCA Compliance Notice

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

This article is for general information only and does not constitute personalised advice.