Going self-employed is a big step, and it can feel like it puts a mortgage on hold for years. The common belief is that you need two or three years of accounts before any lender will look at you. In reality, some lenders will consider an application with just one full year, provided the rest of your case is strong. Here is what to know.

The usual rule, and the exception

Traditionally, lenders wanted two to three years of trading history with steady or rising profits. That is still the norm on the high street. But a smaller group of specialist lenders now consider applications backed by a single year of accounts, especially where the wider picture looks dependable. Fewer lenders means less competition, so the rate and terms may not be quite as sharp, but the door is open.

What helps you qualify on one year

With only one year to go on, lenders look for reassurance elsewhere. A larger deposit, often around 10% or more, makes a real difference, as does a clean credit history. Accounts prepared by a qualified accountant carry more weight, and evidence that your income is sustainable rather than a one-off helps too. Previous employment in the same field is a strong point in your favour, because it shows the income is built on genuine experience rather than a standing start.

What you will need to show

Expect to provide your SA302 tax calculation and the matching tax year overview from HMRC, your full annual accounts, and business bank statements. Many lenders will also ask for an accountant's reference or certificate confirming your income. Getting these in order early makes the whole process smoother. It is also worth checking your credit file first, as our guide on credit scores and mortgages explains.

What can make it harder

Approval is tougher if there are marks on your credit history, or you do not have a track record of work in your current industry. None of these are automatic barriers, but they narrow your options, so it is worth going in with a realistic view and the right lender in mind.

Already have two or three years behind you?

If your business is more established, you will usually have a wider choice of lenders and better rates to aim for. Our guide to getting a mortgage when you are self-employed covers what lenders look for once you have a longer track record.

Ready to talk it through?

You may not have to wait as long as you think. As part of our specialist mortgage advice, our advisers know which lenders are comfortable with one year of accounts, and can help you present your case in the strongest light. Get in touch to see where you stand.