If you work as a contractor, you’ve probably been told — or assumed — that getting a mortgage is harder. The truth is more encouraging: with the right lender and the right approach, contractors can often borrow more than they expect, based on their contract rate rather than just years of accounts.

Why contractors get tripped up

The problem usually isn’t the contractor — it’s the lender. Many high-street lenders assess self-employed and contract income by averaging a couple of years of accounts or tax calculations, which can dramatically understate what a day-rate contractor actually earns. Apply to the wrong lender and you’ll either be offered far less than you should be, or turned away.

The contractor-friendly approach

A growing number of lenders will assess contractors on their day rate, typically by annualising it (a common approach multiplies the day rate by the days worked per week and then by the weeks worked per year). That often produces a far higher — and fairer — income figure to lend against than averaged accounts would.

These lenders usually look for things like:

• A reasonable track record in your line of work (sometimes a fairly short one is fine).
• A current contract with some time left to run, or a history of renewals.
• A gap-free enough work history.

The exact criteria vary a lot between lenders, which is precisely why getting matched to the right one matters so much.

How we help

Whether you’re a day-rate contractor, on fixed-term contracts, working through an umbrella company or limited company, we know which lenders treat contract income properly and how to present your case so you borrow what you genuinely can afford. We do this for contractors across Birmingham and the wider West Midlands.

If you’re contracting and thinking about buying or remortgaging, get in touch — you may be able to borrow more, more easily, than you think.

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

We charge a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £149 to £499 and this will be discussed and agreed with you at the earliest opportunity.