Mortgages for self employed contractors

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

How is a contractor mortgage different?

As you’re a self-employed applicant, lenders may see you as a higher risk than a person with a fixed income, therefore they’re likely to ask you for more evidence of earnings than with a regular residential mortgage application.

The way the lender assesses this will depend on whether you’re a sole trader, work as a partnership or own a limited company.

Can I get a mortgage as a contractor?

Absolutely! We specialise in getting mortgages for those who might struggle going down the traditional route.

We work closely alongside people who are self-employed or a sole trader. As a specialist mortgage broker, we will work closely with you to make sure you’re able to afford your monthly payments.

What counts as a contractor?

Contractors are self-employed workers who run their business for themselves and take responsibility for its success or failure.

How do I apply for a contractor mortgage?

You can speak to a member of our mortgage broker team who can help you throughout the entire process, and benefit from our generous affordability calculators.

How is a contractor’s income assessed?

Mortgage brokers usually look at a contractors annualised income based on their current contract day rate rather than historical tax returns.

This usually works by multiplying the day rate by the number of days worked per week, and annualise it over 46 to 48 weeks, which factors in holidays and unpaid time.

How much can a contractor borrow?

Contractors and self–employed applicants can usually expect to borrow up to 4.5 to 5.5 times their annual salary, although the way the lender assesses this will depend on whether you’re a sole trader, work as a partnership or own a limited company.

Have you previously encountered issues getting a loan? No problem

If you’ve previously applied for a mortgage and been rejected by your bank or a building society, or you’re worried you don’t meet ‘typical’ lending criteria because you’re self-employed, you’ve come to the right place. We can help.

We specialise in finding competitive mortgage deals for ‘out of the norm’ cases, so if:

• You haven’t been trading long
• You’d rather lenders deal with your accountant rather than a SA302
• You’re paid in a foreign currency
• You don’t pay yourself much from your successful business
• Your company has varying net profits from year to year