Mortgages from specialist contractor mortgage brokers in the UK. We have a team of some of the best and award-winning contractor mortgage brokers in the UK who have a wealth of experience in helping contractors secure a mortgage through contractor-friendly lenders.
Our team of FCA accredited brokers specialises in arranging mortgages for contractors and has relationships with lenders who base their lending decisions on a multiple of your annualised contract rate, rather than requiring years of accounts or payslips. This is achieved through contract-based underwriting.
As a contractor, you can apply for up to a 95% mortgage on any property type. We can help you secure competitively priced mortgages similar to those available to permanent employees. Our financial advisors can help you secure the best deals at the most competitive mortgage rates. The mortgage amount you can borrow depends on various factors like income, deposit size, borrowing period, mortgage type and whether or not you are a first-time buyer. Use our mortgage calculator to find out how much money you can borrow.
A contractor mortgage is a type of mortgage that is designed specifically for contractors. For those who don't have permanent employment. The mortgage amount you can borrow is assessed on your annualised contract rate. It caters to the unique financial circumstances of contractors, freelancers, and self-employed professionals, whose income may fluctuate and be less predictable compared to those with regular salaried positions.
Traditional mortgage lenders often rely on consistent, documented income to assess the borrower's ability to repay the loan. However, a contractor mortgage takes into account the nature of contract work, allowing lenders to evaluate income based on contract rates, work history, and projected future earnings. This mortgage typically requires proof of income through contracts, bank statements, and tax returns, rather than standard payslips and employment verification.
A contractor-friendly mortgage lender can offer flexible terms and competitive rates, making home ownership more accessible for individuals with non-traditional employment arrangements.
We are specialists in contractor mortgages and can assist contractors who trade through:
Your mortgage application may get rejected if your broker lacks expertise in preparing it. Many brokers are unaware of contract-based underwriting, which utilises your gross contract rate to obtain a mortgage. You need a contractor-friendly mortgage lender and a specialist broker who can help you with your mortgage application.
For a quick calculation of how much you can borrow, please use our contractor mortgage calculator. Always ensure you work with qualified and FCA approved contractor mortgage brokers to make your mortgage application smooth and hassle-free.
We can help you secure contractor mortgages from specialist and best contractor mortgage lenders.
For a detailed quote and for a free initial consultation, simply fill in your details into the form below and one of our contractor mortgage specialist will get in touch with you.
Some lenders provide contract-based underwriting, allowing you to secure a mortgage using your day rate. Others offer self-employed mortgages based on your accounts. Here's our list of 10 best contractor mortgage lenders in the UK.
Below is a list of 10 best contractor-friendly mortgage lenders in the UK.
Below is a list of 10 best contractor specialist mortgage brokers in the UK.
Not only will we help you secure contractor mortgages from the best mortgage lenders, but also at best mortgage rates possible with minimum documentation.
You can consider starting your mortgage application process once all the below mentioned criteria matches.
Each contractor and each lender's criteria for contractor mortgages are unique. Therefore, the amount you can borrow for your contractor mortgage will depend on several factors, including:
Mortgage lenders can lend up to 4 to 5 times of your annual income.
A simple formula to calculate how much you can borrow is:
Multiply your current day rate by the number of working days. Multiply the answer you get by 48 weeks and then multiply the total by 5.
This will give you an idea about how much you can borrow.
High street lenders criteria for mortgage lending is quite rigid and have a one size fits all mindset. This does not help contractors who are trying to secure a mortgage. With us, everything will be taken into consideration and based on that we'll help you calculate how much you can borrow.
We are aware of the difficulties faced when dealing directly with financial institutions and specialise in helping flexible workers to obtain mortgages at the time they need them. Our team has built up relationships with many Banks and Building Societies who now appreciate the unique employment status of contractors.
A mortgage broker has access to the whole of the market and specialist lenders including mortgage rates that are not available direct – that’s why competitive mortgage deals can be identified. Mortgages that are designed specifically for Contractors can be found, so you may not be required to supply any accounting records.
A personal Mortgage Advisor and Case Handler will be assigned to manage your application through to completion and liaise with lenders, estate agents and solicitors on your behalf to save you valuable time. Establishing a long-term relationship with you will ensure sure all your mortgage requirements are fulfilled on an on-going basis.
As a contractor, securing a mortgage can be straightforward or challenging, depending on how you approach it. Engaging a contractor mortgage specialist can significantly ease the process for several reasons:
The main benefit of working with a specialist contractor mortgage broker is that they understand contract income, mortgage affordability, and the contractor lifestyle.
Using this information, advisors speak to specialist underwriters who accept short-term contracts as valid income proof, often eliminating the need for SA302s, payslips, or extensive financial documentation such as accounts.
Your gross contract day rate is sufficient to secure a competitive mortgage that mirrors your professional standing.
Securing a mortgage as a contractor in the UK can be more challenging than for permanent employees, but it's entirely possible with the right approach. Here are 6 top tips to help you secure a mortgage as a contractor:
Plan Ahead
Start preparing well in advance. Most lenders will want to see at least 12-24 months of contracting history, although some may accept less under certain circumstances.
Organize Your Finances
Make sure your financial records are in order. This includes having up-to-date accounts, tax returns (SA302 forms), and bank statements ready for inspection by potential lenders.
Build and Maintain a Solid Credit Score
Maintain a good credit score by paying bills on time and managing any existing debts responsibly. This can significantly improve your chances of mortgage approval.
Save for a Larger Deposit
Contractors often need a larger deposit compared to permanent employees. Aim for at least a 10-20% deposit to increase your chances of securing a mortgage and possibly get better interest rates.
Find a Specialist Mortgage Broker
Always work with a mortgage broker who specialises in contractor mortgages. They can help you get access to lenders who understand the nuances of contracting and has more flexible lending criteria.
Understand Your Income Structure
Lenders may assess your income differently compared to permanent employees. Be prepared to explain your income structure, such as day rate or contract duration, to potential lenders.
Consider Specialist Lenders
Some lenders specialise in contractor mortgages and may offer more favorable terms than traditional high street banks. Research these options to find the best fit for your situation.
Proof of Income
Keep evidence of your income stability handy. This could include contracts, invoices, and letters from clients confirming your future work prospects.
Set Realistic Borrowing Limits
Understand that your borrowing limit may be lower compared to permanent employees with similar incomes. Factor this into your property search and budgeting.
Review Your Contract Terms
Ensure your contract is up-to-date and reflects your current income status. Lenders may prefer longer-term contracts or contracts with reputable clients.
Prepared a Detailed Application
Contractor mortgage applications can be more complex and may require additional documentation compared to standard mortgages. Be patient and thorough in completing your application.
Seek Professional Advice
If you're unsure about any aspect of the mortgage process or your eligibility, seek advice from a financial advisor or mortgage broker with experience in contractor mortgages.
Is it difficult for a contractor to get a mortgage?
No. It is not difficult to secure a mortgage as a contractor. You need to plan ahead and prepare well so that your mortgage application is not rejected. A specialist contractor mortgage broker can help with that.
Do all lenders offer contractor mortgages?
Not all lenders are able to assess your income in this way but there are many which can. The Advisers at Mortgage Advance Centre have a combined 15 years’ experience obtaining mortgages for contractors and have been personally involved in helping mortgage lenders better understand contractors and shape their criteria accordingly.Do banks give mortgages to contractors?
Yes, banks do give mortgages to contractors, but the process can be more challenging compared to salaried employees. There are contractor-friendly high-street banks like Barclays and Halifax that offer mortgages to contractors.
Will lenders put me on a higher rate because I am a contractor?
While it is true that not all lenders are able to lend to contractors, the lenders who do lend will never penalise you on rates due to your employment status.
Do I require a larger deposit as a contractor?
Not necessarily. As long as you meet lenders’ credit score requirements for higher loan-to-value products, there is no reason why being a contractor would impact the level of deposit required.
How long do I need to have been contracting to apply for a mortgage?
This varies by lender. Some need you to have been contracting for a minimum of 12 months but there are others who will consider “day one” contractors, particularly if they have a strong employment track record.
Do I need 2 years’ accounts to get a mortgage as a contractor?
Absolutely not. This is a common misconception, but a good contract is enough to demonstrate your earning potential.
As a contractor, am I labelled high risk by mortgage lenders?
Maybe 10 years ago but these days, lenders understand that more and more people do not have a linear employment structure.
Does it matter if I am inside or outside IR35?
Not really. There are a few subtle differences in how your income is calculated but regardless of your IR35 status, your contract is the main vehicle to obtaining a mortgage.
How many payslips do I need to show if I work through an umbrella company?
Again, this differs by lender. We ask for 3 months’ payslips as a rule but this is not set in stone. There are some lenders who do not even need to see payslips as part of the application process and will only ask for your contract and bank statements.
Can I still obtain a mortgage if I have only recently gone inside / outside IR35?
Absolutely. This may look like a mess in terms of trying to prove your income but just speak to Mortgage Advance Centre and let us do the work.
For all your mortgage requirements, please write to us at [email protected] and we will be happy to assit you.