A one-year self-employed mortgage is a residential mortgage granted on the strength of one full year of self-employed tax evidence, rather than the two or three years many high-street lenders require. It is only available from a subset of UK lenders and typically requires strong industry background and clean credit.
The scenario
Mrs H from Harrogate had been employed as a marketing manager on PAYE for seven years earning £48,000, then went limited-company self-employed as a freelance marketing consultant. She had one complete tax year of accounts (year ended 5 April 2026) plus three months into the next tax year.
Net profit for the completed year was £62,000. Management accounts for the next three months showed a run-rate of ~£71,000 annualised. She had a 15% deposit for a £320,000 remortgage on the family home she had bought two years earlier.
Why this case was awkward
The existing lender's product transfer offer was uncompetitive, but a full remortgage elsewhere normally requires two years of self-employed evidence. Two mainstream banks had already declined at DIP because the client had "less than two years of trading".
Which UK lenders will consider one year of accounts
Around a dozen UK lenders will consider a mortgage on one year of self-employed evidence. Common themes:
- Two full years of history in the same industry, ideally PAYE-to-self-employed.
- One full SA302 + tax year overview from HMRC — plus, in some cases, an accountant's projection for the current year.
- Clean credit — no defaults or CCJs in the last two years, and no adverse conduct on the current mortgage.
- Maximum LTV usually capped at 85% (a small number will go to 90%).
Speak to a Mortgage Adviser
Get expert, advice across a comprehensive panel of 90+ lenders tailored to your situation. We'll find the right deal — and any costs are always agreed upfront.
Our approach
We obtained the SA302 and tax year overview from HMRC via the client's Government Gateway account, plus a signed accountant's certificate confirming projected profit for the current tax year. We used net profit for the limited-company shareholder, not salary plus dividends (the client's structure allowed either — net profit gave the higher assessable income).
Assessable income was taken as £62,000 (one full year, no averaging). At the chosen lender's 4.5× multiple this gave a maximum loan of £279,000 — comfortably above the £272,000 remortgage required.
Outcome
DIP was returned within 48 hours. Full offer followed 9 working days later at 85% LTV on a 2-year fixed product priced 0.34 percentage points below the existing lender's transfer rate. Estimated saving over the fixed period: £2,940. Broker fee: £299, agreed in writing at research stage.
Learnings for other one-year self-employed applicants
- Same-industry PAYE-to-self-employed is a strong signal to underwriters — evidence the transition clearly.
- Have SA302 + tax year overview ready before you speak to a broker.
- Ask your accountant to prepare a projection letter for the current tax year — several lenders want it.
- Do not accept the existing lender's product transfer without checking the wider market.
Frequently Asked Questions
- Can I get a mortgage with only one year of self-employed accounts?
- Yes — approximately a dozen UK lenders will consider one year of accounts, particularly when your industry background is stable and your credit is clean. Rates are usually competitive but income multiples are often capped at 4.5×.
- What evidence do I need for a one-year self-employed mortgage?
- Typically one full SA302, matching HMRC tax year overview, latest 3 months' business bank statements, and often an accountant's projection for the current year. Limited-company directors may also need company accounts.
- How much can I borrow after one year of self-employment?
- Most one-year self-employed lenders cap at 4.5× assessable income. The definition of assessable income differs — some use net profit, some salary plus dividends, some the lower of the two.
Sources & References
- SA302 tax calculation — HMRC — HMRC
Anonymisation & consent
Client name, location and identifying details have been changed. Income figures, lender names and dates are indicative of the actual case handled by our advisers. Written and published with the client’s consent as an illustrative example — individual outcomes will vary based on your circumstances, lender criteria and market conditions at the time.
Published 24 July 2026 · Last reviewed 26 July 2026 by Matty Stevens · Compliance oversight: Primis Mortgage Network. Your home may be repossessed if you do not keep up repayments on your mortgage.
Need Expert Advice?
Speak to one of our mortgage advisors for free, personalised guidance.
Get Your Free Quote