Is a mortgage possible with one year of accounts?
It may be. Many lenders prefer two years, but a smaller group can assess an applicant after one complete trading year. Their definitions, evidence and appetite differ, so the fact that one lender says no does not settle the wider question.
A lender will normally want to understand whether the first year provides a reliable picture of sustainable income.
What can strengthen the application?
Continuity is helpful. Moving from employment into the same profession, renewing contracts, maintaining healthy business accounts and retaining an appropriate deposit can all help an underwriter understand the risk.
- Previous experience in the same sector
- A complete first year rather than projections alone
- Stable or improving business activity
- Clean recent credit conduct
- Clear evidence of deposit and personal commitments
How might income be calculated?
A sole trader may be assessed from taxable profit, while a director may be assessed using salary, dividends or company profit. Contractors can sometimes be assessed from a contract value rather than a single year’s accounts.
The correct route depends on the legal structure and the lender’s current policy.
Why check before applying?
With fewer eligible lenders, an avoidable decline can be more disruptive. Holly can review the figures, trading background and documents first, then focus on lenders whose assessment is more compatible with the case.
Frequently asked questions
Do I need exactly twelve months of trading?+
Most one-year-account lenders expect a complete accounting period, although requirements vary and projections alone are rarely enough.
Can projections be used?+
They may support an application but usually do not replace finalised evidence. Some lenders may also ask for an accountant’s view.
Will one year mean a higher rate?+
Not automatically, but fewer lender options can affect pricing. Deposit, credit profile and the full case remain relevant.