A mortgage with one year of accounts — or none at all
What makes one year enough
Continuity, more than anything else. A lender considering a single year is looking for evidence that this is a continuation rather than a start — the same field, the same kind of work, ideally the same clients or sector as your previous employment. A CV showing eight years in the discipline behind one year of trading is a very different case from one year of trading and nothing before it.
The second factor is direction. Accounts showing a first year comfortably ahead of the salary you left behind read well. A first year that is markedly weaker invites the question of whether the move is working, and is worth explaining rather than leaving to interpretation.
When the contract route beats the accounts route
For day-rate contractors it frequently does, and it is worth knowing you may not need the accounts at all. Contract-based underwriting assesses the engagement in front of you rather than looking backwards, which sidesteps the trading-history question almost entirely — some lenders will consider a case from the first contract.
So the sequence is worth getting right: establish whether the contract route is open to you before assembling an accounts-based case. Where both are available, model each — the figures can differ substantially, and the better one is not always the one your accountant would expect.
You do not always need two or three years of accounts. Several lenders will lend on a single year, and contract-based lenders can assess your current contract from day one — so going independent recently need not delay buying a home by years.
The “come back in two years” myth
The high street often tells newly self-employed applicants to wait until they have two or three years of accounts. For an employee who has just become a contractor, that advice can cost years of homeownership unnecessarily. Specialist lenders take a different view: they assess the contract in front of you and your professional track record, not just historic filings.
Your routes with a short history
- Day-one contract. Assessed on your current contract via the 46-week method — no full accounts required.
- One year of accounts. A number of lenders accept a single finalised year where the figures are sound.
- Continuous experience. Time spent in the same field as a permanent employee can count towards the picture, even if your contracting itself is new.
- Two years of accounts is common, not compulsory.
- Day-one contractor mortgages exist for professionals new to contracting.
- A strong day rate, relevant CV and clean credit carry a thin-history application.
- First-year accounts often understate you — contract value can be the better basis.
If you’re buying your first home on a short history, our first-time buyer page covers deposits and schemes, and IT contractors shows the day-rate route in practice. Speak to an adviser to find which lenders fit your timeline.
One year of accounts, answered
Can I get a mortgage with only one year of accounts?+
Yes. While many lenders prefer two or three years, several will lend on a single year of accounts where the figures are sound, and contract-based lenders can lend on a current contract from day one without full accounts at all.
What is a day-one contractor mortgage?+
It’s a mortgage assessed on your current contract from the first day of it — using the 46-week annualisation of your day rate — rather than requiring a trading history. It suits professionals newly independent from permanent roles.
Will a thin history mean a worse rate?+
Not necessarily. With a strong day rate, a relevant CV and a clean credit record, you can access mainstream rates. A larger deposit widens your options and can improve the rate further.
What if my one year of accounts looks low?+
Contractors are often better assessed on contract value than on first-year accounts, which may reflect start-up costs. An adviser will choose whichever basis gives the stronger, sustainable figure.
Does an accountant's reference help?+
Often yes, particularly where the accounts are recent or the trading period is short. A reference confirming the figures, the trading period and the expected direction gives an underwriter something to rely on beyond the documents themselves. Some lenders ask for one as standard; providing it unprompted rarely hurts.