Self Employed Mortgages UK - One Year Accounts Considered

How Lenders Assess Self-Employed Income

How your income is assessed depends entirely on how your business is structured, and this is where specialist advice makes the biggest difference. A sole trader is typically assessed on net profit shown across their SA302s and Tax Year Overviews. A limited company director is usually assessed on their salary drawn from the business plus any dividends they receive. A partner in a partnership is generally assessed on their share of the net profit. Because each structure is treated so differently, applying to the wrong lender can badly understate what you can actually borrow.

WIS Mortgages identifies lenders whose approach fits your specific structure, whether you are a sole trader, a limited company director, or a partner, so your true income position is presented accurately.

Can You Get a Mortgage With One Year’s Accounts?

Many people believe you need two or three years of accounts before you can get a mortgage when self-employed. While a number of lenders do prefer two to three years for a clearer picture, some specialist lenders will consider applicants with just one year of trading history, particularly where the income is strong and well evidenced. This can be especially helpful for newer sole traders and recently incorporated limited company directors. WIS Mortgages knows which lenders are comfortable with a shorter trading history and how to present your accounts to give your application the best chance.

Sole Trader vs Limited Company Director

One of the most common questions we hear is how a mortgage application differs between a sole trader and a limited company director. A sole trader’s borrowing is generally based on the net profit declared through self-assessment. A limited company director’s borrowing is usually based on the salary they draw plus dividends taken from the company. These are genuinely different calculations, and the same person can present a very different affordability picture depending on how their income is drawn. This is why it is so important to work with a broker who understands both, rather than a lender applying a one-size-fits-all rule. WIS Mortgages advises across all self-employed structures and matches you to the right lender for how you actually pay yourself.

Why Work With a Specialist Broker

Self-employed applicants are too often turned away by mainstream lenders that don’t properly understand fluctuating income or non-standard structures. A specialist broker changes that by presenting your income clearly and matching you to lenders who assess self-employed applicants fairly. WIS Mortgages works with lenders who assess income using SA302s, full accounts, or an accountant’s reference, and we liaise directly with your accountant to make sure your documentation lines up with what the lender needs. The result is an application that reflects your real earning position, whether you buy or remortgage.