April 3rd, 2025
Getting a mortgage as a contractor with less than one year of accounts can feel like navigating a maze, especially if you’ve only just started your self-employed journey. One of the most common stumbling blocks is the assumption that you must have one or two years of accounts before any lender will consider your application. The good news? That’s not always the case.
In this guide, we’ll break down what lenders really want to see, the options available if you’ve been contracting for under a year, and how specialist support can make all the difference.
Why Do Lenders Ask for One to Two Years of Accounts?
Most traditional lenders prefer to see at least one full year of trading history (ideally two) because it helps them assess your income stability. For someone in full-time employment, it’s easy — a few payslips and you’re good to go. But for contractors, income can appear more complex on paper.
That said, the contractor market has matured significantly in recent years. Lenders are slowly adjusting their criteria, especially if you can demonstrate consistency in your field or previous employment. You can find more about general mortgage requirements on the Gov.uk website.
Are There Mortgage Options Without a Full Year of Accounts?
Yes. While it does narrow the field, there are specialist lenders — and even a few mainstream ones — who will consider applications from contractors with less than a year’s worth of accounts.
Some examples of acceptable circumstances include:
- You’ve moved from a permanent role in the same industry to contracting.
- You’re on a day-rate contract and can provide a current contract of six months or more.
- You’re using an umbrella company and can provide recent payslips and a contract.
- You have a track record of consistent work and minimal gaps between contracts.
In these cases, your income may be assessed using your current contract rate, projected annual income, or payslips provided by an umbrella company.
Example: An IT contractor who recently left a full-time job but secured a 12-month contract may be eligible for a mortgage based on their day rate — even with no formal year-end accounts yet.
What Documents Can Help Strengthen Your Case to get a mortgage as a contractor with Less Than one year of accounts?
If you don’t yet have a full trading year, the focus shifts to demonstrating income reliability in other ways. Here’s what lenders may ask for:
- Current signed contract(s)
- Day rate and expected annual income calculations
- Bank statements (personal and business)
- Payslips if operating via an umbrella company
- Previous employment history (especially if in the same field)
- Accountant’s reference (where available)
Having these documents prepared and in the right format will speed up the process and build confidence in your application.
Tips for Improving Your Mortgage Chances Early On
- Minimise gaps between contracts – Gaps in income are a red flag for lenders.
- Use a specialist broker – Generalist brokers may not understand the nuances of contractor income.
- Stay in the same industry – Demonstrating continuity of skills and demand strengthens your case.
- Get pre-qualified – Use a Mortgage in Principle calculator to check eligibility before applying.
👉 Try our Day Rate Mortgage Calculator to get an instant view of what you might be able to borrow.
How CMME Helps New Contractors Secure Mortgages
At CMME, we specialise in helping contractors, freelancers and self-employed professionals — including those early in their journey. Our relationships with contractor-friendly lenders mean we can often secure options that aren’t available on the high street.
We understand how to present your income and documentation in the most favourable way, making your application smoother and more likely to succeed.
“A lot of contractors don’t realise that mortgage lenders are more flexible than they think — especially if you can show continuity in your work or come from a strong industry background. We help our clients tell the full story behind the numbers.” – Kevin Kiley, Senior Mortgage Broker at CMME in helping contractors, freelancers and self-employed professionals — including those early in their journey. Our relationships with contractor-friendly lenders mean we can often secure options that aren’t available on the high street.
We understand how to present your income and documentation in the most favourable way, making your application smoother and more likely to succeed.
Final Thought
Having less than a year of accounts doesn’t automatically mean your mortgage journey ends before it begins. With the right preparation and the help of a broker who understands your world, it’s absolutely possible to find a solution.
Ready to get started? Speak to one of our specialists or check your borrowing potential using our online tool.