Getting a mortgage when you’re self-employed can feel like trying to fit a square peg in a round hole – especially if you’ve only been trading for a short time. But if you’re wondering whether it’s possible to get a self-employed mortgage with just one year of accounts and no SA302, the short answer is: it’s not easy, but it can be done.
Let’s break it down.
Why Mortgage Lenders Want Proof of Income
Mortgage lenders need to assess risk. When you’re employed, that usually means showing payslips and a P60. For the self-employed, it’s a little trickier. Lenders often ask for:
- Two or more years of accounts
- SA302 tax calculations from HMRC
- Tax year overviews
- Business bank statements
These documents help them see how stable your income is and whether it’s likely to continue.
What if You’ve Only Got One Year of Accounts?
Some specialist lenders will consider applicants with just one year of trading history, but you’ll need to meet certain criteria:
- Strong profitability: Your accounts must show healthy profit – not just revenue.
- Clean credit history: Missed payments, defaults or CCJs can weaken your chances.
- Deposit size: The larger the deposit, the better. Ideally 15% or more.
- Stable income background: If you’ve moved from employed work in the same industry to self-employment, that helps.
- Good accountant: Having a chartered or certified accountant prepare your accounts gives extra credibility.
What If You Don’t Have an SA302?
SA302 forms are summaries of your income and tax from HMRC – lenders often use them to verify your self-employed income.
However, some lenders will accept alternatives:
- Full signed accounts prepared by a qualified accountant
- Tax year overviews (available from your HMRC online account)
- Business bank statements
- Invoices or contracts (especially for freelancers or contractors)
It’s also worth noting that HMRC’s online tax return system often generates the SA302 in a digital format, even if you haven’t specifically downloaded or printed it before. You might already have what you need.
Which Lenders Might Consider You?
High street banks are generally cautious – many require two or more years of accounts. But specialist lenders and mortgage brokers working with self-employed applicants often have access to more flexible criteria.
Some well-known names that sometimes offer options for those with just one year of trading include:
- Kensington Mortgages
- Precise Mortgages
- Bluestone Mortgages
- The Mortgage Lender
- Aldermore
Working with an experienced broker who understands the self-employed market is a smart move. They’ll know which lenders are open to shorter trading histories and how best to present your application.
Tips to Improve Your Chances
- Get your paperwork in order: Even without an SA302, make sure your accounts and bank statements are clear, up-to-date, and show consistent income.
- Use a mortgage broker: They can match you with lenders who are open to your situation.
- Save a larger deposit: The more you can put down, the more attractive your application becomes.
- Stay on top of your credit: A good credit score can be the difference between a ‘yes’ and a ‘no’.
- Consider a joint mortgage: If your partner has a more conventional income, that could boost your chances
FAQs
Yes, some UK specialist lenders will consider mortgage applications from self-employed individuals with just one year of accounts. These lenders assess affordability based on alternative evidence, such as accountant-certified figures or recent bank statements, rather than relying solely on SA302 forms.
It is possible, but you’ll need to provide strong alternative documentation. Some lenders accept full-year accounts from a certified accountant, combined with business bank statements, tax year overviews, or proof of regular income through invoices or contracts.
In the absence of SA302s, acceptable alternatives often include:
– Full-year company accounts signed by a qualified accountant
– HMRC tax year overviews
– Business bank statements showing consistent income
– Signed contracts or invoicing history for sole traders or contractors
– Each lender sets its own criteria, so it’s essential to check requirements before applying.
Your credit history becomes even more important when you have limited trading history. A strong credit score may offset the lack of two-year accounts or SA302s, while adverse credit could reduce your chances. Lenders look for responsible borrowing and no recent defaults or missed payments.
Not necessarily, but it can make the process more challenging. First-time buyers who are self-employed with only one year of accounts should be prepared to work with a specialist broker and gather strong supporting evidence of income and financial stability.
In most cases, yes. A larger deposit (usually 15–25%) helps reduce the lender’s risk and can increase your chances of approval. It may also improve the terms you’re offered, such as a lower interest rate.
Absolutely. A good mortgage broker can identify lenders who accept alternative forms of income proof and guide you through the application process. This is especially helpful if you’re newly self-employed or don’t meet standard lending criteria.
Yes, some lenders offer fixed-rate mortgage deals to self-employed applicants with just one year of trading, although the options may be limited. The exact deal you qualify for will depend on your income evidence, deposit size, and overall financial health.
Continue Reading
How to get a mortgage with 1 years’ accounts
Self employed mortgage 2 years accounts
Mortgage brokers first-time buyers London
Self-employed mortgages London
How do you buy someone out of a mortgage?
Can you add someone to a mortgage?
Single brick construction mortgage
How much can I borrow for a mortgage?
Mortgage with a gifted deposit
Joint mortgage with bad credit