Can you get a mortgage if you’re self-employed and don’t yet have a full year of accounts?

Posted on 25 July 2016


I am self-employed and will not have the 1st full year of accounts by the time I will need to apply for mortgage. I understand it is a specialised case, and would appreciate to know if you can help me?

 Thank you for your enquiry via our ‘Ask the Experts’ section of our website.

You are looking to borrow £350,000 based on a property valued of £500,000k with potential income of £150,000k per annum to purchase an off-plan property.

Unfortunately there is not a straight forward answer, as it depends on a number of factors. There are some lenders who may consider 1 year’s accounts or Tax Overview with either SA302 or HMRC Tax Calculation when assessing affordability for a mortgage.

For Directors of a Limited company the salaried income plus dividends received will generally be used. Where the applicant(s) have a 100% share in the business, net profit figures can be used in addition to salaried income, as long as the funds are not held for a specific purpose such as tax bill, business expansion, etc. It therefore depends on your circumstances as to who we are likely to approach.

You will need to provide 3 months business and personal bank statements. However, this will be very dependent on your business trading year, your previous employment or role and if you are in a position to provide projected second year trading accounts. If you were in the same line of work and have recently changed for tax purposes, some lenders may class this as continuous employment when they  underwrite your mortgage application.

Although not knowing your full financial position, it would appear, based on the information you have supplied that this something we can help you to explore in the future. My advice would be to get a signed copy of your trading accounts from your accountant if you have one and then talk to a member of the John Charcol team. As an Independent broker we have access to a wide range lenders including those that still manually underwrite cases and can therefore judge each application on its individual merits, so we who would be able to recommend the most suitable lender based upon your individual circumstances.

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.