Contractor Mortgages with Less Than One Year of Accounts

Contractor Mortgages with Less Than One Year of Accounts

Blog Article

Just started your contracting journey and worried that having less than one year of accounts means you can't get a mortgage? The truth is, it’s possible—with the right lender and advice.

Here’s what you need to know if you’re a new contractor looking to buy a home.

Why Traditional Lenders May Say No
Many high-street lenders want to see 2–3 years of trading accounts to prove income stability. If you’re newly self-employed or have just switched from permanent employment to contracting, this can be a hurdle.

But There’s Good News…
Some specialist lenders will consider you if:

You have a current contract in place

You’ve worked in the same industry previously

You can demonstrate income continuity and future demand

They may assess your income based on your contract rate rather than accounts.

How Income Is Calculated
Lenders familiar with contractors may use a simple formula:

Daily rate × 5 days × 46–48 weeks

Example: £350/day × 5 × 46 = £80,500 annual income

This method can work in your favour, especially if your company hasn't built up a profit history yet.

Tips to Strengthen Your Application
Keep previous employment records – especially if you moved from a permanent role in the same field.

Maintain a clear contract history – renewals and back-to-back roles are a plus.

Have a larger deposit (10–15%) – this reduces the risk to the lender.

Use a specialist broker – someone who knows which lenders accept limited trading history.

Final Thoughts
Having less than a year of accounts isn’t a deal-breaker for contractors. With the right documents and lender, you can still access competitive mortgage options—even early in your contracting career.

At Contractor Mortgage Solutions, we help new contractors navigate the mortgage process with confidence and clarity.