Case Study – Sole Trader to Limited Company Mortgage

Second Opinion Saves the Day: From Delays to Dream Home

Can you get a mortgage with just one year’s accounts? What if you’ve moved from being a sole trader to a limited company?

If you’ve recently switched, you might be worried about your options. In this case study, we explain how we helped a client overcome delays, secure a better deal, and protect their future—with just one year’s trading history.

When an accountant referred their client to us, time was already running out. The couple had found their dream home—but delays with their mortgage application were putting everything at risk.

The Challenge – Only one year’s accounts

The clients had recently transitioned from working as sole traders to running a limited company. As a result, they only had one year’s company accounts available.

They’d already spoken to another adviser, who correctly suggested a specialist lender that accepted one year’s accounts. However, the process wasn’t going smoothly. The lender was asking for extensive supporting documents, assurances from the accountant, and clarification after clarification.

While it’s fair for lenders to carry out thorough checks, the constant back-and-forth was creating anxiety. The clients were worried they wouldn’t get the mortgage in time—and would miss out on the home they had set their hearts on.

Taking a Closer Look

When we stepped in for a second opinion, we reviewed their circumstances more holistically. Although they only had one year’s limited company accounts, they also had several years of sole trader tax returns. Their income history showed clear continuity—and they had a strong track record in the same industry and a good credit score.

This detail was critical. Some lenders view a switch from sole trader to limited company as a continuation of business rather than a fresh start—especially if the applicant has years of relevant experience.

The Solution – Getting approved with a mainstream lender

We approached a mainstream lender, outlining the full context of the clients’ income and professional background.

Even though the lender’s criteria didn’t formally accept just one year’s accounts, they made an exception—treating this as a business that had simply changed structure, not stability.

The result?

• The full mortgage was approved quickly and smoothly
• The clients secured the home they really wanted
• The new deal saved them over £300 per month compared to the original specialist lender’s terms

Going Beyond the Mortgage

As part of our advice process, we also discussed the couple’s future plans and potential risks to their income.

We helped them set up a tax-efficient protection strategy through their business:

• A Relevant Life Plan to protect their family in the event of death
• Executive Income Protection to safeguard their income if illness or injury kept them from working

These solutions gave them peace of mind—and because they were arranged via the company, they came with valuable tax advantages.

Final Thoughts – Sole Trader to Limited Company Mortgage

This case highlights the importance of tailored advice—especially when your situation isn’t “standard.”

Just because one lender says no, or suggests an expensive route, doesn’t mean there isn’t a better way. A second opinion could save time, stress, and in this case, £300 a month.

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

Symmonds de Lacey is a trading style of Easy Street Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales.

Please note, we are not tax advisers. For tax advice, please refer to a specialist accountant or tax adviser.

Information correct as of May 2025