No, a default is not a CCJ. A default is added to your credit report by a lender when you miss payments on an account. A County Court Judgment (CCJ) is a court order telling you to repay a debt. They are different — but a default can sometimes lead to a CCJ if the debt isn't resolved. Lenders treat CCJs as more serious, but both can be accepted by specialist mortgage lenders, especially if they're settled or older than 12–24 months.

How long do defaults and CCJs stay on your credit file in the UK?

Defaults and CCJs both stay on your UK credit file for six years from the date they were registered, and then drop off automatically — even if the debt hasn't been paid. A default stays for six years whether it's settled or not, though settled defaults are marked 'satisfied' and viewed more favourably by lenders. A CCJ also stays for six years, but if you pay it in full within one month of the judgment, it can be removed from your credit file completely. After six years, lenders can no longer see them. You don't always need to wait that long to get a mortgage though — many specialist lenders accept CCJs and defaults that are only 12–24 months old, particularly when settled.

Can you get a mortgage with a CCJ or default in the UK?

Yes, you can get a mortgage with a CCJ or default in the UK. High-street lenders usually prefer the CCJ or default to be at least three years old and settled, but specialist bad credit mortgage lenders will often accept ones registered in the last 12 months — sometimes even unsatisfied ones if the amount is small. The key factors lenders look at are how long ago the issue happened, whether it's satisfied, how many you have, the amount owed, and your deposit size. A specialist mortgage broker can match you to the lenders most likely to approve your situation. Call Chris on 07359911696 for a quick, no-pressure chat to find out what's possible.

Can I get a mortgage with only one year of self-employed accounts?

12 Jul

Written By Christopher Smith

Yes, it's often possible to get a mortgage with just one year of self-employed accounts, though your choice of lenders will be narrower than with two or three years. A handful of lenders accept a single year's accounts, especially if you have a strong track record in the same line of work before going self-employed.

Most mainstream lenders prefer two or three years, but "most" is not "all". The key is knowing which lenders will consider one year, and presenting your case to them properly.

Which lenders accept one year's accounts?

A select group of lenders will consider one year of accounts, rather than the wider market that wants two or three. They tend to look more favourably on your case if you moved into self-employment from employment in the same field, because that shows continuity of experience.

The exact lenders and their criteria change regularly, so the practical route is through a broker who tracks who currently accepts one year. That saves you applying to lenders who would only decline you.

What documents do I need with one year of self-employment?

For a sole trader, you'll usually need your first full year's accounts (ideally prepared by an accountant), your SA302 tax calculation, and the matching tax year overview from HMRC. Lenders will also want recent business and personal bank statements.

If you trade through a limited company, you'll need your company accounts and your personal tax documents. Having these ready and tidy, with an accountant's involvement, makes a one-year application run far more smoothly.

Can I get a mortgage with less than one year self-employed?

This is much harder, because almost all lenders want at least one complete year of accounts to assess your income. With under a year, your options shrink dramatically and many lenders will decline outright.

It is not always impossible, particularly if you have a strong deposit or were previously employed in the same field, but it is a specialist case. If you are in this position, it is worth a conversation rather than assuming the answer is no.

Can I get a mortgage after one year of consistent freelance work?

Often, yes. One full year of consistent freelance income, backed by accounts and tax documents, can be enough for the lenders who accept a single year. Consistency matters: steady, regular income reads better than one large spike followed by quiet months.

Lenders want confidence that your income is sustainable. Showing ongoing contracts or a steady client base alongside your accounts strengthens the picture considerably.

Does bad credit make a one-year-accounts mortgage harder?

Yes, combining one year of accounts with adverse credit narrows your options further, because you are asking a lender to accept two things outside their comfort zone at once. It is one of the trickier combinations to place, but not an automatic no.

The bottom line

One year of self-employed accounts does not rule out a mortgage. The market is narrower, the paperwork matters more, and good presentation makes a real difference, but it is often possible with the right lender, especially if your wider profile is strong.

Have a free, no-obligation chat with Chris Smith Mortgages on 07359 911696. We'll tell you honestly what's possible with the accounts you have.

Christopher Smith