When you apply for a mortgage in the UK, lenders usually ask for a good bit of paperwork. One common request is your tax returns, often covering the last three years. But what if you don’t have them? Can you still get a mortgage without three years’ tax returns?
The short answer is: yes, but it might be a bit trickier. Let’s break it down.
Why Do Lenders Ask for Tax Returns?
Tax returns are one way lenders check your income. If you’re employed, they may rely more on payslips and P60s. But if you’re self-employed, tax returns (SA302 forms and tax year overviews from HMRC) give a clearer picture of your earnings over time.
Most lenders like to see at least two or three years’ worth of accounts to understand if your income is steady and reliable. It’s their way of managing risk.
What If You Don’t Have Three Years’ Tax Returns?
Maybe you’ve only been self-employed for a year or two. Or perhaps you’ve had a break in work or recently changed how you earn your income.
Here’s the good news: some lenders are flexible.
- One Year’s Accounts: A few lenders will consider applications if you’ve only got one year’s tax return. You’ll likely need a strong deposit (often 15% or more) and a good credit score to strengthen your case.
- Two Years’ Accounts: With two years’ tax returns, your options open up a bit more, though some lenders might still want three.
- Other Proof of Income: If you don’t have full tax returns, lenders might look at things like business bank statements, recent contracts, or accountant’s letters to understand your income.
It’s worth noting that while some lenders are open to shorter histories, others will stick firmly to the three-year rule.
What Are Your Options?
If you’re in this situation, don’t panic. Here’s what you can do:
Work with a Mortgage Broker
A broker knows which lenders are flexible and which ones aren’t. They can save you time and help match you with a lender that suits your situation.
Prepare a Bigger Deposit
The more you can put down upfront, the less risk the lender takes on, which can help balance out a shorter income history.
Get Your Paperwork in Order
Even if you don’t have three years of tax returns, make sure you have clear and accurate documents for the years you do have. Keep business bank statements, invoices, and any contracts handy.
Consider a Joint Application
If you apply with someone who has stable, employed income, it could help strengthen your application.
So, can you get a mortgage without three years’ tax returns?
Yes — but you may need to work a bit harder to prove your income and show lenders you’re a good bet.
The UK mortgage market has many lenders, and they all have slightly different rules. If you’re unsure where you stand, speaking to a broker or advisor can really help.
Remember: just because one lender says no, it doesn’t mean they all will. With the right approach, you can still find a mortgage that fits your needs, even without the full three years of tax returns.
FAQs
Yes, some UK lenders will consider a mortgage application if you have only one year of tax returns. You’ll usually need a larger deposit (often 15–20%) and a solid credit history. It’s also a good idea to provide extra proof of income, like recent contracts, business accounts, or an accountant’s letter.
Mortgage lenders want to see your income over time to check if it’s stable and reliable. For self-employed applicants, three years’ tax returns give them confidence that your income isn’t just a short-term trend. It helps them manage their risk when lending money.
Yes, there are specialist lenders in the UK who focus on helping self-employed people, contractors, or those with shorter income histories. These lenders may accept one or two years of tax returns or use other evidence, like bank statements or accountant references, to assess your application.
If you’re employed through PAYE, most lenders won’t need your tax returns. They usually rely on your payslips, P60s, and bank statements. Tax returns mainly come into play for self-employed applicants or people with complex income sources.
Definitely. A bigger deposit reduces the lender’s risk, which can make them more open to applicants with shorter income records. It also increases your chances of securing a better mortgage deal.
Yes, a mortgage broker can be really useful in this situation. They know which lenders are flexible and can help you find a deal that suits your circumstances. Going it alone can be tough, especially if you’re unsure which lenders will accept your application.
If you lack three years of tax returns, gather other proof of income, such as:
> Recent business bank statements
> Contracts or client agreements
> Accountant’s letters
> Management accounts or profit-and-loss statements
Having clear, well-organised documents can strengthen your application.
Yes, but it’s more challenging. Most lenders prefer at least one full year of self-employed accounts. You may need to look for specialist lenders or consider waiting until you’ve built up a stronger financial track record.
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