Mortgages For Self Employed With 1 Years Accounts

How to get mortgages for self employed with 1 years accounts easily without needing to wait. Everything you need to know!

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I am recently self employed with 1 years accounts, can I get a mortgage?

If you have 1 year of accounts it is slightly harder to get a self employed mortgage. If you have 2 or 3 years accounts this would be ideal. The good news is that whilst you may find it more difficult getting mortgages for self employed with 1 years accounts, it’s still very much possible!

Who can get mortgages for the self employed with 1 years accounts?

If you are a sole trader, Limited company director, Contractor or other self employed person you can usually get mortgages for self employed with 1 years accounts.

Previously declined?

Lenders need to be able to evidence you can afford the mortgage, which may lead to a decline from some.

With the help of an expert Albion Forest mortgage advisor, and specialist lenders for the newly self employed we can find the right lender for your situation.

What is ‘Self certification’?

Unfortunately you can no longer get ‘Self certification’ mortgages. These were banned in 2011 as many that got this type of mortgage wouldn’t actually be able to get them under today’s guidelines.

Do I need to work in a particular area or industry for Mortgages for Self employed with 1 years Accounts?

In short, no you don’t need to work in a particular area or industry. Lenders only usually  assess whether your income is stable and sustainable.

How much could I borrow?

This is a complicated one. The answer is, you can usually borrow as much as an employed person. This can vary from lender to lender. You can use our mortgage calculator to work out how much you may be able to borrow, this could be up to six times your income. Check with 

Can I still get mortgages for the self employed with 1 years accounts if I have bad credit?

Wanting mortgages for self employed with 1 years accounts, already restricts you on lender choice. However depending on the nature of your bad credit there are still specialist lenders that take bad credit and a single years accounts.

We work with lenders that will accept debt, even if its adverse credit like defaults or CCJ’s, they are certainly out there, and may even be on the high street! We have an article on bad credit mortgages here.

When you have bad credit it’s important to check your credit file, for this we recommend Checkmyfile, you can do this here.

What income evidence will I need to provide to the lender?

Generally lenders will want to see your latest years tax calculation and tax year overview, most will want 2 years worth. You can find out how to get these here.

How much deposit will I need?

Depending on what you want to do, but generally at the moment a minimum of 5% would be normal. You used to have the option of the Government Help to Buy scheme. This would only require a 5% deposit. However, this scheme has now ended, but you can use the deposit unlock scheme.

You also have the recently announced First Homes scheme. This scheme will see properties at a minimum of 30% discount for first time buyers and key workers, this isn’t in use yet, but we hope to hear more details by the end of 2020.

Can I remortgage as a self employed person?

Of course! Being self employed won’t harm your chances of being able to remortgage, you’ll be able to do it the same as everybody else. If you are looking for re mortgages for self employed with 1 years accounts generally you would be assessed just like you would if you were purchasing.

Do I need to tell my lender if I become self employed?

If you think your ability to repay will be affected by it, yes probably. Otherwise you shouldn’t need to.

Before Applying

Before you apply for mortgages for self employed with 1 years accounts it’s a good idea to get yourself in the best position possible.

  • Get in touch with a mortgage broker, they can find the right lender to suit your situation.
  • Have a chartered accountant prepare your accounts – Lender’s like this a lot.
  • Check your credit rating, there’s lots of free services out there.
  • Save, save, save! Save as much deposit as you can.

How many years do I have to be self employed to get a mortgage?

This depends on the lender, but some will lend to you with a single years accounts. Most will require two or three years of accounts, and will take an average, some will take your latest years figures.

What income do mortgage companies look at for self employed?

In terms of what income you can use this also varies depending on lender, but for directors of limited companies some accept salary & dividends, net profits or even gross profits.

I am self employed in the UK, can I get a mortgage?

Absolutely! We’ve detailed it in a few places on this page, but you can get a mortgage in the UK usually if you have at least one full year of accounts.

Can you get a mortgage with one default?

Bad credit can be a problem for you, and being self employed as well makes its harder. However the good news is that we have access to lenders for self employed that will take these issues into consideration.

Get in touch and we’ll go through your options.

Best mortgages for self employed

The self employed have a few different options for mortgages, we’ve detailed a few options below.

Can I get buy to let Mortgages for self employed with 1 years accounts?

Being self employed can feel like a barrier to some things, but you can become a landlord and there are specialist lenders for you. There’s a whole article on this here.

I haven’t finished my first year trading yet – can I get a mortgage?

If you haven’t completed your first year then probably not unfortunately. However this will give you time to get other area’s ready as we mentioned in our ‘Before applying’ section above.

I’ve only been self employed a short time, why is it harder to get a mortgage?

Lender’s have to establish you can afford and continue paying a mortgage, so they usually need a larger amount of evidence than an employed person. That said there are lenders who will lend when you have only a years accounts, but you’ll want an expert Mortgage broker to navigate them.

I’ve been self employed for a year, what’s the most I can borrow?

This is a complicated one, the answer is, usually as much as an employed person, but again it varies from lender to lender, so get in touch.

Mortgages for Self Employed with 1 Years Accounts

Mortgages for self employed with 2 years accounts

Some lenders will want to see 3 years of accounts in order to provide a track record. However there are some which will lend to you with 2 years accounts. Deciding which lender to go with will expend a lot on your personal circumstances.

A lot of these lenders are high street names you will know, some are more specialist and you may not have, but they are all regulated by the Financial Conduct Authority so you know you’re in safe hands.

Self employed director mortgage

If you are a Director of your limited company and own over 25% of the shares you are generally considered self employed by lenders and are assessed in the same way. Our expert advisors have access to specialist lenders that understand how being a limited company director works and we submit your application in the best way possible to get you your mortgage. More on this here.

Remortgage with 1 years accounts

You can absolutely remortgage with 1 year accounts, just like you would if you were purchasing, and the mortgages have the same criteria generally.

I’m a Youtuber with 1 year of accounts, can I get a mortgage?

Absolutely! As your career is new and exciting in the industry some lenders may not understand what you do though. There’s a bit more information on this here.

Can an Actor with 1 year of accounts get a mortgage?

Definitely, we specialise in this, you can find a whole article on this here.

Got a question we didn’t answer? Maybe we answer it on our main Self employed page, if not get in touch!

A mortgage article by Mark Robinson – Mortgage & Equity Release Broker