Buying a Home After a Big Year in Business
When Your Latest Year’s Business Income Makes All the Difference
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to £495 per mortgage may be charged depending on individual circumstances.
The information contained within was correct at the time of publication but is subject to change.
12th November 2026
Running your own business can sometimes make getting a mortgage feel more complicated than it needs to be, particularly when your income has changed significantly from one year to the next.
I’d previously helped one of these clients arrange a mortgage on a property they owned individually. This time, they came back to Bristol Rose Mortgages with their partner because they were ready to buy their first home together.
Both in their 30s, they run their own limited company together. The business had enjoyed a really strong latest year, but the previous year told a very different story, with the company having made a loss.
That meant finding the right lender was particularly important.
Finding a lender that looked at the latest year
Not every lender assesses company directors in the same way. Some will average income over a number of years, while others may place greater emphasis on the most recent trading figures where there is a good reason to do so.
In this case, we wanted a lender that could consider their latest year’s salary and dividends and was also comfortable requesting an accountant’s reference to understand how their business was currently performing.
Their overall financial position helped. They had a clean credit history, very little debt and a 15% deposit.
Where possible, I often encourage buyers to consider whether they can reach a 10% deposit, and potentially 15%, without leaving themselves short of savings. Moving into a higher deposit bracket can open up more mortgage options and may also provide access to more competitive rates.
A home they could make their own
They were buying a lovely Victorian terrace that needed some TLC. The plan was to renovate it from top to bottom and turn it into a home they could see themselves staying in for the long term.
Because they had no intention of moving again any time soon, certainty was important.
They wanted to know exactly what their mortgage payment would be every month so they could budget for the mortgage alongside the work they wanted to do to the house.
We therefore looked at longer term fixed rate options and ultimately proceeded with a five year fixed rate mortgage.
This meant their payments would be protected from changes in interest rates during the fixed period and, just as importantly for them, they could plan their household finances and renovation spending knowing what their mortgage payment would be each month.
Getting the income assessment right
The application itself was thorough, but we had approached a lender whose criteria fitted the clients rather than trying to make the clients fit a lender.
They were prepared to consider the latest year’s salary and dividends and obtain an accountant’s reference, which meant the significant improvement in the business could be properly understood.
That ultimately allowed the couple to secure the mortgage they needed and buy their new home.
From mortgage in principle through to standing in their new home, the process took around three and a half months.
Their review afterwards summed up why finding the right lender mattered:
“As two women business owners with nontraditional employment and income we were worried that we would struggle to get a mortgage, but Adam pursued and offered us a range of options, reaching out directly to our eventual mortgage provider, and checking the rates and updating to a more favourable product at various stages as the purchase progressed.”
They also thanked Victoria and Sarah for their help and support throughout the purchase, which made this one a particularly nice case for the whole Bristol Rose Mortgages team to see complete.
Has your business had a particularly strong year?
If you run your own business and your latest year has seen a significant increase in income, it doesn’t necessarily mean you need to wait another year or two before applying for a mortgage.
Different lenders assess company directors and business owners in different ways. In the right circumstances, there are lenders that may consider the most recent year’s figures rather than relying solely on an average of previous years.
If you’re self employed, a company director or run a family business and want to understand how much you could potentially borrow based on your latest figures, get in touch with Bristol Rose Mortgages. We can look at your circumstances and establish which lenders are likely to take the most appropriate view of your income.