Absolutely! While it can be a bit trickier than for someone in full-time employment, it’s far from impossible. The key is finding the right lender who understands your unique situation as a contractor. Let’s break it down and show you how it’s done.
Most mainstream mortgage lenders prefer to see accounts from the past few years, along with evidence that you have stable work lined up. But don’t worry—not all lenders require three years’ worth of accounts. Some can base their decision on your day rate or even your current contract terms.
Even if you’re new to contracting and don’t have accounts yet, you still have options. This is where our Mortgage Experts step in to explore the best solutions for your unique circumstances. Ready to dive in? Let’s talk!
The definition of a contractor can vary depending on the lender, and so does their lending criteria.
Typically, a contractor is someone who:
Companies hire contractors when they need specific expertise or to fill a temporary role. Unlike employees, contractors don’t receive company benefits but instead work under a contract that clearly outlines the project scope and duration.
If this sounds like you, you’re in the contractor camp! Let’s move on to what you’ll need when applying for a mortgage.
When applying for a mortgage, lenders will look at similar criteria as they would for employees, including your age, income, and credit score. However, they’ll also dig a little deeper into your work life as a contractor. Be ready to answer questions like:
Here’s a pro tip: Gather evidence of your qualifications, prior employment, and signed contracts before applying. It’ll save you time and give lenders confidence in your application.
Lenders typically calculate your income in one of two ways:
The takeaway? Choose a lender that aligns with your income patterns. And if you’re unsure where to start, we’re here to guide you!
How Much Can You Borrow as a Contractor?
Contractor borrowing power usually starts at around three times your annual earnings, but some lenders might stretch this to four-and-a-half times. To get the best deal, you’ll need to:
If you’re new to contracting, don’t stress. Specialist lenders are more flexible and can base your mortgage on your current contract or day rate. That’s where we come in—to match you with the right lender who gets your unique situation.
Taking the leap as a new homeowner or moving house can feel daunting, but you’re not in this alone. With the right preparation and guidance, you’re closer to your dream home than you think.
Start an enquiry today, and let’s find the perfect mortgage for your circumstances. It’s time to turn your contracting success into a place to call your own. Let’s make it happen!
If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.
Yes, you can get a mortgage as a day rate contractor. Many specialist lenders and brokers recognise contractor income and calculate affordability based on your daily rate rather than just payslips or tax returns. The key is to apply with lenders who understand contractor-specific mortgage applications.
Most lenders multiply your daily rate by the number of working days in a week (usually 5) and then by 46–48 weeks to account for time off. For example, if you earn £400 per day, a lender may assess your annual income at around £92,000 (400 × 5 × 46). This allows contractors to demonstrate strong affordability.
Not always. While traditional mortgages often require two or more years of accounts, many contractor-friendly lenders will accept your current contract and track record of renewals. Some may only require 6–12 months of contracting history, especially if you have experience in the same industry.
Typical documents include your current contract, proof of ID, bank statements, and sometimes evidence of previous contracts. Unlike standard self-employed applications, you may not always need full company accounts if your income can be clearly evidenced through your day rate contract.
Yes, using a specialist contractor mortgage broker can significantly improve your chances of approval. Many high street lenders don’t fully understand contractor income structures, whereas specialist brokers work directly with lenders who regularly approve day rate contractor mortgages.
