Halifax 1-Year Self-Employed Mortgage: A Contractor’s Guide to Getting Approved with Limited Accounts

For many self-employed professionals and contractors in the UK, securing a mortgage can be challenging—especially if they have been trading for less than two years. Most high street lenders require at least two to three years of accounts, making it difficult for newly self-employed individuals to access home loans.

However, Halifax is one of the few lenders that offers mortgages to self-employed applicants with just one year of accounts. This makes homeownership more accessible for freelancers, contractors, and small business owners who can demonstrate financial stability.

In this guide, we’ll cover:

• How self-employed individuals can qualify for a Halifax 1-year mortgage

• The eligibility criteria and required documents

• Tips to improve your approval chances

If you’ve been self-employed for at least a year and are looking to secure a mortgage, this guide will help you explore your options.

Can You Get a Mortgage with Just One Year of Self-Employment?

Yes! Halifax offers mortgages to self-employed applicants with only one year of trading history, which is rare among mainstream lenders. While most mortgage providers require two or more years of accounts, Halifax assesses applications based on just one year’s income records.

To qualify, applicants must demonstrate stable earnings, industry experience, and a strong financial profile. Those who have transitioned from employment to self-employment in the same field often have a better chance of approval, as they are considered lower risk.

Why Do Contractors and Self-Employed Professionals Struggle to Get Mortgages?

Self-employed applicants face stricter requirements than salaried employees because:

• Irregular income – Fluctuating earnings make it harder for lenders to assess affordability.

• Lower taxable income – Tax-efficient earnings can reduce the declared income used for mortgage calculations.

• Limited financial history – Lenders prefer long-term accounts to verify financial stability.

Despite these challenges, Halifax provides mortgage solutions specifically tailored to self-employed individuals. Working with a specialist self-employed mortgage broker can significantly increase approval chances.

Halifax 1-Year Self-Employed Mortgage: Eligibility Criteria

To qualify for a Halifax self-employed mortgage with just one year of trading, applicants must meet the following requirements:

✔ Minimum 1 Year of Trading History

• Applicants must have been self-employed for at least 12 months and provide one full year of HMRC tax returns (SA302) or company accounts.

✔ Industry Experience

• Lenders favour applicants with prior experience in their field. For example, a contractor who was previously employed in the same industry is seen as lower risk.

✔ Income Assessment Based on Salary, Dividends, or Net Profit

• Limited company directors: Halifax considers salary and dividends but not retained profits.

• Sole traders and partnerships: The lender assesses net profit from tax returns.

✔ Good Credit History

• A strong credit score is essential. Lenders check outstanding debts, missed payments, and overall financial reliability.

How Much Can You Borrow from Halifax?

Halifax typically lends 4.5 to 5 times the applicant’s declared annual income. The exact borrowing amount depends on:

• Income level – Higher income can increase the borrowing amount.

• Deposit size – A larger deposit improves affordability and lowers interest rates.

• Credit history – A good credit score can lead to better mortgage terms.

Example:
A self-employed contractor earning £50,000 per year could typically borrow between £225,000 and £250,000.

Required Documents for a Halifax Self-Employed Mortgage

Applicants must provide comprehensive financial records to prove income stability. Halifax requires:

• Proof of Identity & Address – Passport or driving licence, plus a recent utility bill or bank statement.

• One Year’s SA302 Tax Calculation & Tax Year Overview – These confirm declared income from HMRC.

• Business Accounts (Limited Company Applicants) – Accounts must be prepared by a certified accountant.

• Bank Statements (Personal & Business) – Typically covering the last three to six months to show income and spending patterns.

• Proof of Deposit & Existing Financial Commitments – Lenders need to verify affordability.

Halifax Mortgage Options for Self-Employed Borrowers

Halifax offers various mortgage products suitable for self-employed applicants, including:

• Fixed-Rate Mortgages – 2, 3, 5, or 10-year fixed terms for predictable monthly payments.

• Tracker Mortgages – Rates follow the Bank of England base rate, meaning payments may fluctuate.

• Interest-Only Mortgages – Available for those with a solid repayment plan in place.

Unlike some lenders, Halifax does not charge higher rates for self-employed applicants—they offer the same mortgage products as they do for salaried borrowers.

Tips to Increase Your Chances of Mortgage Approval

• Work with a Specialist Mortgage Broker – A broker can match you with lenders that are more flexible with self-employed applicants.

• Increase Your Deposit – A deposit of 15-20% can reduce lender risk and secure better rates.

• Maintain a Good Credit Score – Pay bills on time, avoid unnecessary credit applications, and check your credit report for errors.

• Provide Accountant-Certified Financial Projections – If newly self-employed, professionally prepared accounts can improve credibility.

How Mortgage-Tek Can Help You Secure a Self-Employed Mortgage

Applying for a Halifax 1-year self-employed mortgage without expert guidance can be challenging. At Mortgage-Tek, we specialise in securing mortgages for self-employed professionals, contractors, and freelancers across the UK.

Why Choose Mortgage-Tek?

• Access to specialist lenders who understand self-employed income.

• Mortgage options tailored for sole traders, limited company directors, and contractors.

• Expert guidance to maximise your borrowing potential.

• Dedicated support from application to approval.

Whether you have one year or multiple years of self-employment, our team can help you navigate the mortgage market and secure the best deal.

📞 Ready to get started? Contact Mortgage-Tek today and take the next step towards homeownership!