Figures from the Office for National Statistics show that as of the fourth quarter of 2025, there were around 4.38 million self employed people in the UK. The self employed therefore make up a significant part of the UK workforce.
If you’re self employed, you may be wondering if you can apply for a mortgage. And if you can, when’s the best time to apply? Ideally, you’d like to go for it as soon as possible. But what about if you only have one year of accounts? Should you wait until you have two years’ worth, or maybe even three?
Whatever your situation, our blog will help you find out more about applying for a mortgage if you’re self employed.
Can you get a mortgage being self employed for one year?
If you’ve been self employed for a year, you might feel you’re able to judge what level of monthly mortgage payments you can afford.
In reality, while some lenders will be willing to consider an application from you at this stage, most will prefer you to have two or three years of accounts. This is because they will be able to get a better view of how stable your income is, which will enable them to make a more accurate assessment of affordability.
From a lender’s perspective, only having one year of accounts gives them less certainty, meaning they may perceive you as higher risk. This can affect the amount you can borrow.
Mainstream, high-street lenders are less likely to consider someone in this situation. However, specialist lenders can be more flexible.
Wherever you apply you’ll need to supply relevant documentation to prove your income. This can include certified accounts as well as your self-assessment tax records. You may find that financial projections for the next 12 months can help, if they’re prepared by a qualified accountant.
Additionally, evidence of previous employment or industry experience may strengthen your application. This is because it shows that you have expertise and continuity in your field.
It can help if you have a large deposit and a strong credit history. If you’re applying for a joint mortgage, it can also help if the other applicant has a stable employed income.
Your income may grow as your business gains momentum. Therefore, if you can afford to wait until your accounts show a larger income you may be able to get a larger mortgage.
Bear in mind though, that lenders may still take an average, so lower previous years could reduce your overall useable income.
Six months self employed mortgage
Applying for a mortgage after six months of self employment can present similar challenges to applying after a year. However, as the time period is even shorter, it can prove more difficult. Specialist lenders may consider you, but not all. This means that your choice of lenders, products and rates might be limited.
Mortgage self employed two years accounts
Applying for a mortgage when you’re self employed and have two years of accounts is more straight forward than applying after a shorter period. Many lenders will assess your application with the same merits as someone who is employed once you have two years of accounts. This is because seeing your earnings over a longer period allows them to make a more accurate assessment of how risky lending to you will be. This will give them more reassurance that you can meet your monthly mortgage payments.
Self employed mortgage turnover or profit
If you’re self employed and want to apply for a mortgage, you may be wondering whether lenders are more interested in your turnover or profit.
Lenders will be much more interested in your net profit than your turnover. This is because it helps indicate whether your income is stable and sustainable. A business may have a high turnover, but if it isn’t profitable, you won’t be able to meet you mortgage payments. So, while turnover can be a factor, profits are a more reliable measure of your income stability.
How do self employed mortgages work
Whether you’re a sole trader, a company director, or a contractor, you may find that being self employed means you face stricter requirements when applying for a mortgage than salaried employees do.
Many lenders will view your usable income as that which is declared for tax purposes. Therefore, being very tax efficient can negatively impact your ability to borrow. So, it may be worth a conversation with your accountant to see how this could affect you.
Lenders typically require more documentation to verify your income and assess affordability. This can include:
- Proof of income such as:
- SA302 forms or a tax year overview from HMRC for the past two to three years.
- Accounts certified by a registered accountant.
- How long you’ve been self employed: most lenders prefer applicants to have at least two years of self-employment history. However, some lenders such as Suffolk Building Society may consider an application with just one year of accounts.
- Affordability: lenders will conduct a thorough affordability assessment. This will include stress-testing your ability to make repayments if interest rates rise. They will look at your average income over the last two to three years and may require evidence of future contracts or work.
- Deposit requirements: most lenders will have the same deposit requirements for employed and self employed applicants. However, if you have 1 years or less accounts you may find you need a larger deposit.
If you’re self employed, consulting a mortgage broker could help you secure a mortgage. They’ll be familiar with the challenges self employed people face, so can help you navigate lender requirements and present your income effectively.
As usual, we’d advise doing some careful research that allows you to consider all your options before you proceed. This will allow you to pick the best product for your needs.
If you want to get started today, why not complete our decision in principle form? It only takes around 10 minutes and will give you an idea of how much you could borrow.
