Quick answer: Yes, you can get a mortgage as a new business owner. Many lenders want two years of accounts or tax calculations, but some accept one full year, and a few will consider less if your business continues the work you did as an employee. Lenders use actual income figures, not projections.
The article is updated as of Oct 23, 2026
Starting a business changes how lenders see your income. As an employee, payslips and a P60 tell the story. As a business owner, the lender needs to see what the business has actually paid you, and that takes time to build. The good news is that the minimum trading period is shorter with some lenders than many people expect.
Why Lenders Are Cautious With New Businesses
Lenders need to be confident your income will continue for the term of the mortgage. A new business has a short track record, profits can swing in the first year, and many owners take a low salary while the business grows. That is why lenders focus on evidence: what you have earned, how it is paid to you and whether it is stable.
How Much Trading History Do You Need?
- Two years: the traditional requirement and still common with many mainstream lenders.
- One year: some lenders accept one full year of accounts or an SA302. See our guide to one-year self-employed mortgages.
- Under a year: a small number of lenders will consider this, usually where you have moved from employment into self-employment in the same line of work, such as an electrician leaving a firm to trade on their own.
How Your Business Structure Changes the Figures
The way you run the business decides which income figure a lender uses. The table below is a general guide; criteria vary between lenders.
| Business structure | Income figure lenders commonly use | Typical evidence |
|---|---|---|
| Sole trader | Net profit from your tax return | SA302s and tax year overviews, or accounts |
| Partnership | Your share of the partnership’s net profit | SA302s, partnership accounts |
| Limited company director | Salary plus dividends, or salary plus your share of net profit | Company accounts, SA302s, accountant’s certificate |
| Recently self-employed in the same trade | Actual earnings so far, supported by previous employment history | Accounts or tax calculation, previous payslips and P60 |
Worked example
Tom left a salaried design role 14 months ago and now runs his own limited company. His first year’s accounts show a salary of £12,570 and £38,000 left in the company as retained profit. A lender that only uses salary plus dividends would see a low income because Tom drew few dividends. A lender that considers salary plus his share of net profit could assess around £50,570 before tax adjustments. Same business, same accounts, very different borrowing figures. Our glossary entry on retained profits explains how this works.
How to Prepare Before You Apply
- File your tax return early so HMRC can produce your SA302 and tax year overview
- Keep business and personal finances in separate bank accounts
- Ask your accountant whether they can provide an accountant’s certificate if a lender asks for one
- Avoid large, unexplained cash withdrawals or new credit in the months before applying
- Speak to a broker before applying, so a decline does not leave an unnecessary hard search on your credit file
What Changes After Year Two
Once you have two years of figures, most lenders that accept self-employed applicants will consider you, and many average the two years or use the latest year if income has risen. If profits dropped in the second year, lenders often use the lower figure, so it helps to talk to an adviser before your accounts are finalised.
Frequently Asked Questions
Can I get a mortgage with less than two years of accounts?
Yes. Many lenders prefer two years of accounts or tax calculations, but some accept one full year. A smaller number will consider less than a year, usually where the business continues work you did as an employee.
Will lenders accept income projections for a new business?
Most lenders base the mortgage on actual figures from accounts or HMRC tax calculations rather than projections. Projections can support your case, but they rarely replace evidence of income you have already earned.
How do lenders assess a new limited company director?
Some lenders use your salary plus dividends, while others will consider your salary plus your share of the company’s net profit. The method chosen can change how much you can borrow.
What documents do new business owners need for a mortgage?
Lenders usually ask for SA302s and tax year overviews from HMRC, or company accounts, plus bank statements. Some accept an accountant’s certificate or reference confirming your income.
Will I need a bigger deposit as a new business owner?
Not always. Many lenders treat self-employed applicants with a full year or more of figures much like employed applicants on deposit. A larger deposit can widen your options if your trading history is short.
Related Mortgage Guides
- Mortgages with one year of self-employed accounts
- Our guide to self-employed mortgages
- Mortgages for company directors
- Getting a mortgage as a sole trader
- Mortgages without an SA302
- Mortgage and property advice hub
This guide is reviewed by Damian Youell CeMAP, Senior Mortgage Broker. Meet the rest of our team, including Romany Youell.
Your home may be repossessed if you do not keep up repayments on your mortgage. Needing Advice is an independent, FCA-regulated mortgage broker. There is no obligation to proceed.
Damian Youell
Damian is the founder of NeedingAdvice.co.uk and the firm’s Senior Mortgage Broker. He specialises in helping clients across the UK with straightforward and complex mortgage cases, including self-employed applications, adverse credit, buy-to-let, remortgages and first-time buyer mortgages.
Alongside mortgage advice, Damian also supports business owners with protection planning, including Relevant Life Policies, Shareholder Protection and Keyperson Cover.
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