Getting a Mortgage with 1 Year's Accounts and Share of Profit

Being self-employed doesn’t mean you’re locked out of the mortgage market.

Many business owners believe they need three years of accounts and a big salary to be considered for a mortgage - but that’s not always the case. Some lenders are now offering mortgages based on just one year’s accounts or your share of profits, opening doors for newer businesses and sole traders.

At Endurance Mortgages, we specialise in helping self-employed clients access mortgage solutions that reflect how they really earn. Here’s how it works:

Can You Get a Mortgage with 1 Year’s Accounts?

Yes, you can. While many high street lenders ask for two to three years of accounts, there are mortgage providers who are happy to consider applications with just 12 months of trading history - especially if the business has strong financials or the applicant has relevant industry experience.

To apply with one year’s accounts, you’ll typically need:

• A full set of accounts signed off by a qualified accountant

• A good credit history

• Evidence that your income is stable and sustainable

• Up-to-date tax calculations and tax year overviews from HMRC

If you’re a sole trader, lenders may assess your net profit. If you’re a limited company director, they might look at salary and dividends - or better yet, your share of net profits.

What Is 'Share of Profit'?

Many self-employed people keep profits within the business for tax or growth reasons. But not drawing it out doesn’t mean you’re not earning it.

Some lenders now consider your share of retained profits - not just what you take as salary or dividends. This can make a big difference to what you can borrow, particularly if your business is performing well.

For example: If your company earns £75,000 and you only draw £30,000 in salary and dividends, a lender that uses share of profit could assess your income as £75,000 instead - boosting your borrowing power significantly.

What About Deposits and Rates?

Deposit requirements vary by lender, but most self-employed applicants will need at least 10%. The more deposit you have, the better your chances of securing a competitive rate.

Rates for self-employed mortgages are typically in line with employed applicants - as long as your income can be verified and your credit profile is solid.

How Endurance Mortgages Can Help

We know that no two businesses - or self-employed borrowers - are the same. Whether you’re a freelancer, contractor, sole trader, or director, we can:

• Help you gather the right documents to support your application

• Match you with lenders who accept one year’s accounts or share of profit

• Guide you through each step of the mortgage process

• Help you explore remortgage or property investment options if you already own a home

With our whole-of-market access and self-employed mortgage experience, we’ll help you get the most from your business income.

Final Thoughts

Being newly self-employed doesn’t mean you have to wait years to get on the property ladder. With the right documents and the right lender, you could qualify sooner than you think.

Key takeaways: ✓ You may be eligible for a mortgage with just one year’s accounts ✓ Some lenders consider retained profits, not just salary ✓ Expert advice helps you maximise what you can borrow

Need help finding the right lender? Speak to the team at Endurance Mortgages today for tailored advice and support.

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Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.