Improve Your Mortgage Application

A guide on how to improve your chances of getting a contractor mortgage

How to improve your mortgage application


Detailed below are some ways you can improve the success of your contractor mortgage application.

Use A Mortgage Provider Who Specialises In Providing Their Clients With A Contractor Mortgage

The common thought process when looking for a mortgage is the perfect mortgage deal will be dealt with easily and quickly. Unfortunately the majority of bank staff do not hold the relevant skills and expertise to handle contractor mortgage queries. This therefore means you fall out of the ‘standard script’ when you are asked to outline your salary details and proof of employment.

We therefore recommend you source a broker who specialises in contractor mortgages. Key mortgage underwriters that have an understanding for your status will enable you to get a contractor mortgage quickly and hassle free.

Try And Aim For At Least 10% Deposit

The 100% mortgage is a long distant memory now and the best rates are only available to those individuals who have successfully obtained a deposit. Many banks recommend a deposit of between 10%-25%. If you are unable to obtain a deposit of this percentage don’t worry there will still be mortgages available but you should be prepared to pay a higher rate.

The more equity that you are able to make available, enables lender to take on less risk and in turn significantly lower your repayments.

Review Your Credit Report And Polish It

It should go without saying, if you want to borrow any money you should review your credit report and check there are no ugly surprises. Even if you have regular income and a high deposit your mortgage application could still be refused if your credit report is not up to scratch.
Since the banking crisis a few years ago, lenders are far stricter than they used to be so it is best to avoid giving lenders an excuse to turn your application down. Little things such as not updating your electoral roll information or missing a single payment on your credit report is all it takes to damage your credit rating.

Check Your Contract Is Up To Date

Any potential lender will request a copy of your contract so check it is signed. The current contract must state the length of your contract and the current rate. This will be used to support your application and potentially save the hassle of having to get three years’ worth of accounts.

Be Aware Of Your Limits

From the offset be realistic on how much you can afford to repay each month. It is worth noting the figure your lender offers you will be based on a multiplication of your salary and the higher this figure the higher your repayment commitment. If you can afford the monthly payments now, can you afford them in the future? If the current base rate went up by 1% could you afford to pay the difference in payment? If not you need to be sensible.

Hopefully the tips provided give you the confidence to seek a contractor mortgage that is right for you. Please use these guidelines to help you research contractor mortgages and more importantly understand what is required from you.


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