Contractor Mortgage

Can contractors get a mortgage? How long do you have to be a contractor to get a mortgage?

Yes, contractors can get a mortgage. Normally lenders need you to have two years’ experience with a continuous contracting history. Some allow 12 months experience, if you have six months remaining on the contract.

I do have a lender that doesn’t need any history, as long as you have a two year continuous track record in the same line of work before becoming a contractor.

What are the lending criteria for contractors? How will their income be assessed?

The main criteria is what we’ve just mentioned around experience. On the income side, we can sometimes go off payslips if you’re employed, but we can also use your day rate if you have one.

Some lenders multiply that day rate by five – to get a week’s income, and then again by 52 to get an annual figure. Some lenders like to allow for annual leave and multiply it by 46 or 48.

We would check all those lenders to see which one would offer the maximum borrowing based on their approach to your income.

What documents do I need to get a mortgage as a contractor?

We’d need a copy of the latest signed contract. That will give us all the details we need, including the day rate. Then we need your latest three bank statements, as always, and a driving licence or passport.

If you’re employed, we would also need your most recent three months’ payslips.If you’re self-employed, we’d recommend getting your latest SA302 tax calculations and tax year overviews for the last two years – that ensures we’ve got everything on file to assess the case for you.

Can I take out a mortgage as a contractor with another person?

Yes. You can do that if the other person’s employed or even not employed. It’s always better if they’ve got an income. As a contractor getting a joint mortgage is completely fine.

What deposit will I need as a contractor? Will I need a bigger mortgage deposit than usual as a contractor?

The deposit is pretty standard. The main difference for contractors is how lenders assess the income. The deposit wouldn’t change – it’s a minimum of 5% with most lenders. At the moment, in May 2025, there is one lender that would look at 100% mortgage, but the criteria is tight. With the majority it’s a 5% minimum.

How much money can I borrow as a contractor?

It will be assessed based on your day rate or pay slips. If you come to us, we’ll look at the whole income scenario and check affordability across the market for you. We also take your commitments into account.

I can’t really say how much you can borrow until we know exactly what those figures are. That’s why we need documents from you.

How do I get a mortgage if I contract under a limited company?

It’s the same as if you were a standard employee. You would come to us here to check how much you could borrow based on that limited company.

On a self-employed basis, lenders look at two years of accounts or two years’ tax calculations. With a day rate, some lenders don’t need you to have two years of accounts – they would just calculate the income from your contract details.

To get a mortgage in a limited company, just come to see us – we’ll check the affordability and then look at the most suitable deal for you. We progress the application if you’re happy to do so.

Can I get a Buy to Let mortgage as a contractor?

Yes, you can. With Buy to Let, lenders look mainly at the rental income – but they do like an income in the background. Many lenders want £25,000 minimum, although not all of them require that.

It’s the same as with residential, really – certain lenders won’t look at contractors while others do. But a number of Buy to Let lenders will accept contractors.