Mr. Green, a motivated first-time buyer and limited company director, had just found his dream home in Southsea.
As a business owner running a surveying business, he approached The Mortgage Pod for expert support, knowing we specialise in helping self-employed limited company directors secure mortgages.
After reading conflicting information online, Mr. Green was unsure if his dream purchase could become a reality because his limited company had only one year’s accounts.
Many high street lenders set strict requirements, and he wondered whether his short trading history would block him from getting the right mortgage.
Is It More Difficult to Get a Mortgage with Only One Year’s Accounts?
Yes, it can be. When assessing a mortgage application for limited company directors, many lenders prefer to see a strong track record and at least 2–3 years of accounts. This gives them confidence in the company’s profit, personal income, and the business’s ability to sustain regular income.
With only one year of trading history, options are limited, and it becomes harder to meet lenders’ requirements. However, the right mortgage broker can help navigate these hurdles.
How Did The Mortgage Pod Help Find a Solution?
Fortunately for Mr. Green, our team at The Mortgage Pod has over 35 years of combined experience in the mortgage market and property industry. As a whole-of-market mortgage broker, we looked beyond the usual high street lenders and searched for specialist lenders with more flexible policies.
We identified a smaller lender, a regional building society, that was willing to conduct a manual review of his application, assessing the full mortgage application based on the company’s profit, his personal income, and the strength of his business, despite having only one year’s accounts.
Before submitting, we carefully studied the lender’s specific requirements and ensured all necessary documents, such as bank statements, tax returns, and company reports, were provided promptly. We kept Mr. Green updated throughout, communicating regularly by email and WhatsApp, ensuring the process was as smooth and stress-free as possible.
What Did the Specialist Building Society Say About the Application?
Working with specialist lenders offers a significant advantage: direct access to decision-makers like underwriters who can take the full picture into account. In Mr. Green’s case, the underwriter commented:
“As Mr. Green has a wealth of professional experience working as a surveyor and holds all relevant qualifications, we are confident that there will be various income sources and opportunities available outside of the client’s existing contracts.”
For limited company directors, it’s common for lenders to contact the accountant for confirmation of details like corporation tax handling and company profit. In this case, the underwriter praised the accountant’s thoroughness and Mr. Green’s well-organised documentation.
“Mr. Green is clearly building a very successful business and is very good at managing the financial side of the company, with clear and organised documentation.”
Client Testimonial
Mr. Green was thrilled:
“The Mortgage Pod helped me secure a mortgage when I thought it was impossible with only one year of trading. Their knowledge of specialist lenders, understanding of self-employed mortgages, and their dedication to keeping me updated made the whole process easier than I expected.”
Can The Mortgage Pod Help with My Self-Employed Mortgage Application?
At The Mortgage Pod, we specialise in helping self-employed individuals and limited company directors secure mortgages.
Whether you are applying as a self-employed limited company director, a sole trader, or an employed limited company director, we can assess your circumstances, match you with the right lender, and help you get a mortgage even with challenges like only one year of trading.
Ready to Find the Right Mortgage for Your Business Journey?
At The Mortgage Pod, we help limited company directors, self-employed individuals, and first-time buyers overcome the barriers many face when applying for a mortgage.
Whether you have only one year’s accounts, a short trading history, or complex income sources, our expert team will connect you with the right lender and ensure your mortgage application is as strong as possible.
Frequently Asked Questions
What Documents Do I Need If I Have Only One Year of Trading History?
You’ll need:
– Full, finalised first year’s accounts
– Three months of company and personal bank statements
– Personal tax documents like SA302s and Tax Year Overviews
Can I Get a Mortgage Using Salary and Dividends if I’m a Limited Company Director?
Yes! At The Mortgage Pod, we assess your personal income from both salary and dividends to help determine the best mortgage options for you.
Can You Get a Mortgage with Just One Year’s Trading History?
Absolutely! As we’ve shown in Mr. Green’s case, with the right mortgage broker and specialist lenders, it’s entirely possible to secure the right mortgage even with one year of trading.
How Can I Start My Self-Employed Mortgage Journey with The Mortgage Pod?
Get Started with The Mortgage Pod today — we’re ready to guide you every step of the way.
