Contractor Mortgages

First off, there is no such thing as a “contractor mortgage.” There are, however, lenders who specialise in dealing with contractors. In any case, there are certain things to consider when applying for a ​mortgage​ as a contractor.

What Is A Contractor Mortgage?

First off, there is no such thing as a “contractor mortgage.” There are, however, lenders who specialise in dealing with contractors. In any case, there are certain things to consider when applying for a ​mortgage​ as a contractor.

Due to the nature of the work, contractors don’t have a stable income compared to people who are in full-time employment. This raises the risk for lenders and can make it harder for them to calculate your ​mortgage affordability​ (how much money they can lend you).

However, it’s still very much possible for a contractor to secure a mortgage — you just have to provide sufficient documentation in order to convince a lender that you can afford to repay your mortgage. Here’s what you need to know about securing a mortgage as a contractor.

Things Mortgage Lenders Will Look At

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Things Contractors Need To Provide To A Lender

  • 2 to 3 years’ worth of accounts. If you’re a ​limited company​, provide your lender with your full business accounts.
  • Evidence of previous contracts, contract renewals and future contracts lined up.For contractors who haven’t been operating long enough to have 2 to 3 years’ worth of accounts, some lenders will accept six months’ worth of accounts, depending on what type of contract worker you are and other factors like your ​credit score​ and the size of your deposit.
 

How Lenders Assess Your Income

 

How To Improve Your Chance Of Getting A Mortgage As A Contractor

 

How We Can Help If You’re A Contractor Looking For A Mortgage