A Guide to Contractor Mortgages

A short guide on how to get a contractor mortgage

A Guide to Contractor Mortgages


Mortgages for contractors can at times be a minefield. The main reason is due to lenders having different views on the role of a contractor. In the majority of cases you are either employed on a short term contract or self-employed working for a company. Every bank or building society will have their own policy on who they will lend to and who they will not.

Their decision is usually based on:

  • How long you have been contracting for
  • How long you have worked in the current industry for
  • If your contract has ever been renewed – if not is there a valid reason for this?
  • Length remaining on your current contract

Detailed below are the different types of contractors:

  • Self-employed – hold at least six months experience as a contractor
  • Fixed/short term contractor – A contractor with previous working experience
  • A contractor of an umbrella company
  • Zero hours contractor – must have at least twelve months work history
  • Agency worker – must have at least twelve months work history

It does not matter if you have been contracting for one day or over several years, there will be a mortgage product that meets your requirements and our mortgage specialists will be able to advise the best course of action.

The Dos and Don’ts of Contractor Mortgages

  • Do. Keep up-to-date records and accounts of your business.
  • Do. Get in touch with a certified or chartered accountant to prepare your accounts and tax return.
  • Do. Speak to a mortgage broker such as Mortgages 4 Contractors about your options.
  • Do. Speak to your current lender if you’re a contractor thinking about remortgage or moving home.
  • Don’t. Reduce your income too much for tax purposes – this will have a negative affect on your chances of getting a mortgage.
  • Don’t. Assume it’s impossible to get a mortgage if you’re a contractor – it’s not.

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