Can I get a mortgage with 1 year’s accounts?
This will depend on the lender you use. Most lenders will ask you to provide three years of accounts, often certified by an accountant. However, we know that this is not possible for everybody, with more people than ever becoming freelance, contractors, or setting up their own limited companies. In certain circumstances it may be possible to get a mortgage with only one year’s trading figures.
With 1 year of accounts, a lender will ask for much more information. They may also ask for projections, assets, and information about your employment before you started your own business. Your previous income and employment history will be considered in the underwriting process if you have worked in a similar trade or profession before becoming self-employed.
Providing a larger than average deposit or level of equity to invest in the property, and therefore requiring a smaller loan, will help the lender to feel more comfortable with the risk of lending to you. Showing your commitment to the mortgage in this way may also secure a better interest rate.