As a contractor, you may find it more challenging to secure a mortgage with a traditional mortgage lender. Strive Mortgages can steer you towards the appropriate lenders for your situation to improve your chance of a successful mortgage application.

Jamie Elvin talks us through the mortgage process for contractors.

Welcome to Strive Mortgages, a specialist contractor mortgage broker

Mortgage lenders favour predictability, and many have strict lending criteria that excludes those with a variable income, like contractors and freelancers. However, with the rapid growth of the UK’s self-employed sector, plenty of lenders are now willing to consider contractors.

Strive Mortgages has a proven track record of securing excellent mortgage deals for contractor clients. When you work with us, we will make a thorough assessment of your earnings and income before matching you with appropriate lenders from our extensive network.

Your dedicated mortgage broker will ensure you meet contractor mortgage criteria and assist in strengthening your application. We’ll help you gather all the necessary documentation, like bank statements and SA302 forms, and complete the mortgage application on your behalf to save you a whole lot of stress and hassle.

Contact us today, and allow us to find you a competitive mortgage deal.

What is a contractor mortgage?  

It’s important to note that there is no specific ‘contractor mortgage’ product as such. When we refer to a contractor mortgage, we are talking about deals from lenders with more flexible lending criteria and who understand the nuances of contractor income.

These type of mortgages, often from specialist lenders, are tailored to self-employed contractors, taking into consideration irregular income patterns and contract-based employment.

How is a contractor’s income assessed for a mortgage?

When assessing a mortgage application from a contractor, lenders typically look at their latest contracts and invoices to determine their earnings over a certain period. They may also consider factors like the length of the contract, frequency of the work, and the likelihood of work in the future.

Let’s take a look at an example:

  • Daily contract rate: £500
  • Working days per week: 5
  • Weeks worked per year: 48 (allowing for four weeks of holiday)

Total annual income: £500 x 5 x 48 = £120,000

This income assessment method is commonly known as an annualised contract rate. Generally, mortgage lenders consider lending 4.5 -5 times income to eligible applicants.

Speak To an Expert

Whether you’ve just had an offer accepted on a property and you’re ready to go, or you’re simply wondering how much you need to save for a deposit, it’s never too soon to reach out.

Which mortgage lenders consider contractors? 

There are certain banks and building societies that are considered to be more contractor-friendly when it comes to mortgage lending.

Here are some examples of contractor-friendly lenders:

  • Halifax
  • Bank of Ireland
  • NatWest
  • Nationwide
  • Clydesdale Bank
  • Metro Bank
  • Skipton Building Society

How can Strive Mortgages help contractor workers get a mortgage?

A contractor’s income is often complex, in a lender’s eyes at least. If your income is not straightforward, ‘off-the-shelf’ mortgages may not be the right solution.

Strive Mortgages is a contractor mortgage specialist, and we work with a wide network of mortgage providers, including high-street lenders, building societies, private banks, and specialist lenders. We are independent, and our aim is purely to find the right lender for your circumstances.

We can help you understand the available options and identify the most appropriate lenders to give you the best chance of success with your application. 

First-time buyer mortgages for contractors

Embarking on your journey as a first-time buyer is exciting but can be full of trepidation, especially as a contractor with a complex income. Strive Mortgages understands the challenges you face getting on to the property ladder and is committed to helping you find a mortgage loan.

As your mortgage broker, we will thoroughly assess your personal circumstances, goals and financial situation and present the potential monthly mortgage payments to ensure they are achievable. We’ll guide you through the entire process, providing advice on improving your application and chances of success.

Remortgaging for contractors

Whatever reason you want to remortgage, Strive Mortgages can offer advice tailored to your plans. Whether you’re seeking better rates, increased flexibility, or releasing equity, our experienced advisers will assess your circumstances and guide you through the remortgaging process.

We understand that, as a contractor, your financial situation can be changeable and sometimes unpredictable, so we will ensure you can comfortably meet the monthly repayments, aim to save you money and help safeguard your finances in the long term.

Home mover mortgages for contractors

Moving homes is a significant undertaking, and as a contractor, it comes with its own set of challenges. Strive Mortgages specialises in securing professional contractor mortgages and can take the hassle out of the mortgage application process.

We will present you with options from our extensive network of lenders to find flexible and tailored solutions that accommodate your unique income. Whether you’re upgrading, downsizing, or relocating, our dedicated brokers will work hard on your behalf to make your home move easier.

Why choose Strive Mortgages?

At Strive Mortgages, we are highly experienced in securing competitive contractor mortgages. If you are facing challenges finding a lender independently, please reach out to us, and we will help you find a suitable lender and realise your dreams of home ownership.

For more information on mortgages for contractors, please contact a member of the Strive team, by emailing or call us on 01273 002697.

Your home may be repossessed if you do not keep up with your mortgage repayments.

Frequently asked questions about contractor mortgages

Can I get a mortgage as a contractor with a Limited company?

Yes, limited company contractors can get a mortgage. However, the criteria and requirements vary between lenders. Some lenders base their assessment on the limited company’s profits, while others may consider your income based on your contract value, which may be more favourable. 

Check out our services for mortgages for limited company directors.

What about contractors buying property with another person?

The benefits of a joint mortgage application for a contractor include increased borrowing capacity, improved affordability, shared responsibility, access to better deals, and a simplified application process.

Can I get a mortgage with a 3-month contract?

Yes, it is possible to obtain a mortgage with a 3-month contract. While some lenders may require a longer contract period, there are lenders who have no minimum contract length. It’s advisable to work with a mortgage broker to access these kinds of lenders.

Can I get a mortgage on a contract that’s in IR35?

Yes, it is possible to get a mortgage while on an IR35 contract, but the specific terms and conditions vary between lenders, and it’s advisable to seek guidance from a mortgage broker like Strive Mortgages, who is familiar with contractor mortgages in the context of IR35.