Can I get a mortgage if I have just started my own limited company?

The short answer

Yes, it is possible to secure a mortgage as a new limited company director, even if you have been trading for less than two years. While high-street lenders typically demand a two-year track record, specialist lenders can often assess your affordability based on your latest year's accounts or even projected earnings.

Why this is tricky

High-street lenders operate on rigid, automated systems designed for the "average" borrower. They view a new business as a risk because they lack a long-term history to verify that your income is stable and sustainable. To them, a new company is an unknown quantity, and their underwriting criteria often mandate a minimum of two years of filed accounts to prove your earnings.

When you apply to a mainstream bank, their system often triggers an automatic decline if you cannot provide those two years of SA302s or company accounts. This isn't necessarily because you cannot afford the mortgage, but because your profile doesn't fit their specific "box." They are not set up to manually review the nuances of a new business structure or the strength of your professional background.

How Matthew approaches it

When I work with clients in this position, the first step is to look beyond the high street. I focus on specialist lenders who understand the mechanics of limited companies. These lenders are more interested in the "story" behind your income than just a two-year spreadsheet.

1. Assessing your background: If you have moved from a permanent role into a similar field as a contractor or consultant, some lenders will consider your previous employment history as evidence of your professional stability.
2. Reviewing your contracts: If you are a contractor, we can often use your current contract rate to calculate your annualised income, rather than relying on historical tax returns.
3. Utilising the right evidence: We look for lenders who accept a single year of accounts or, in some cases, a letter from your accountant confirming your projected earnings and the health of your business.
4. Structuring the application: I ensure the application highlights your industry experience and the sustainability of your business model, which helps the underwriter see the person behind the paperwork.

What you'll need

• Company incorporation documents: To prove the business is legally registered.
• Latest business bank statements: Usually the last 3–6 months to show consistent cash flow.
• Accountant’s reference: A letter confirming your current earnings and business projections.
• Current contracts: If you are a contractor, these are vital for proving your income stream.
• Personal bank statements: The last 3 months to show your personal financial management.
• Proof of deposit: Evidence of where your funds are coming from.

Things to watch for

• Avoid multiple applications: Every "hard" credit search leaves a footprint. If you get declined by a high-street lender, stop and speak to a specialist before applying elsewhere.
• Don't over-optimise for tax: While your accountant might be doing a great job minimising your tax liability, remember that lenders assess your income based on the figures reported to HMRC. Low reported profit can limit your borrowing power.
• Check your credit file: Ensure your personal credit report is clean, as any blips will be magnified when you are already considered a "non-standard" applicant.

Next steps

Every business is unique, and the right lender for you depends entirely on your specific industry and income structure. If you would like to discuss your situation, you can book a call with me or chat with Molly to see how we might approach your application. We cannot guarantee approval, but we can certainly help you understand your options.

Important Notice: This article is for general guidance only and does not constitute regulated financial advice. Mortgage criteria and rates change frequently. Always consult a qualified mortgage adviser who can assess your individual circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.