Mortgages For Self-Employed Without Accounts

Can I get a mortgage with no accounts?

It’s possible but will be more difficult than if you had a few years’ accounts under your belt.  Usually, a mortgage lender will look at your average income over recent years to determine how much you can afford to pay and, therefore, how much you can borrow.  

Lenders have a duty to lend responsibly and only give mortgages to people who are able to prove they can afford the repayments. Because of this, lenders will need to see proof of your income and ask for evidence that you can afford your monthly repayments. They’ll want to see that you’ve got a proven track record, as well as solid earning projections. 

Even when you have one years’ accounts, you will be able to show a lender that you have traded profitably over that period and back this up with further evidence that shows your income since the tax return was submitted. But if you’ve just gone self-employed, you won’t have accounts to share. In that case, the more evidence that you can give to a lender to support your application, the more likely that it is to be approved. 

You’ll certainly need some help identifying the right mortgage lenders and that’s where we come in. Make an enquiry and one of our mortgage experts will contact you to discuss your options further.

Why is it difficult to get a mortgage if you’ve only just gone self-employed?

Mortgage lenders want as much proof as possible that you earn what you say you do. Most lenders like to see at least your first year’s tax return so they can decide if you’ll be able to pay back the money you borrow from them. 

Once you’ve been self-employed for three years and have three year’s worth of accounts to prove it, most lenders will be happy to offer you a mortgage if your accounts are healthy and your income is stable. But with less than that, lenders aren't as sure about your ability to pay them back.

With no accounts at all, it’s going to very tricky, but it’s not impossible with the right preparation and guidance.

What are the reasons for not having any self-employment accounts?

The main reason why someone who is self-employed doesn’t have accounts is they’ve only just started working for themselves and haven’t filed a tax return yet. 

A self-assessment tax return is due by January 31st following a tax year-end (5th April). For example, if you started working for yourself on 6th April 2024, you won’t need to do your first self-assessment return until 31st January 2026. That’s almost 22 months after becoming self-employed. 

A limited company is required to submit a corporation tax return nine months and one day after the end of the accounting period for the previous financial year. That said, you don’t have to wait until the deadline to file a tax return. Filing a tax return earlier could mean that you have one year's accounts evidence of earnings for lenders. 

This means the first tax year of being self-employed is the most difficult for someone to get a mortgage.

Will lenders consider me if I have no self-employment accounts?

Many mainstream lenders won’t consider self-employed applicants who have no accounts. But don’t give up! There’s specialist lenders who will. So it’s possible to get a mortgage if you meet their specific lending criteria.

The longer you’ve been trading, the more options you’ll have. Our Mortgage Experts know the specialist lenders to approach, meaning you don’t waste time with lenders who’ll flat out refuse you. If you get in touch a member of our team can talk with you in more detail about what the process may involve.

How long do I need to have been self-employed to get a mortgage?

Many lenders will want to see 3 year’s worth of accounts from you to prove your income. Most lenders want to see your first year’s tax return at least. They do this because they want to work out how much you can afford to borrow based on your current income.

Generally, the more accounts you have, the better. If you have one year’s accounts or less, it’s a great idea to have your accounts prepared by a qualified accountant. If they can do a year-to-date overview of your income, that will help your case when your mortgage broker approaches lenders. So while your chances do improve the more accounts you have, you can get a mortgage even if you’ve been self-employed for as little as nine months.

Read more in our Self-Employed Mortgage Guide.

Do I need a bigger deposit if I don’t have any accounts?

Possibly. In most cases, a minimum deposit of 10% to 15% will be required for a residential mortgage. But, the more deposit you have, the more mortgage lenders will be attracted to your application and see you as less of a risk.

Making sure your finances are in order and being able to provide a good deposit will help you to have as many options open to you as possible.