Ask an expert: Questions about contractor mortgages
Ask an expert: Questions about contractor mortgages

Contractor mortgages can be confusing – and what’s more, when you search online for answers you can even leave with more questions. We asked one of our experts for their professional opinion.

These are your top 10 questions about contractor mortgages – and here are your definitive answers.


1. Where do I apply for a contractor mortgage?

Through an Independent Mortgage / Financial Adviser. You can access Financial Advisers through Contractor Honeypot.


2. How much money can I borrow?

This will depend on individual circumstances, such as day rate / hourly rate, deposit available and any outstanding debts. (an affordability calculator would be completed to determine exactly how much an individual can borrow).


3. How many months do I need to be contracting before I can apply for a mortgage?

This varies from lender to lender, generally if you have 2 years employment history in the same industry, you can be on your first contract.


4. I’ve already been declined for a high street mortgage. Can I still apply for a contractor one easily?

Yes you can, it is always best to see an Independent Adviser as they have access to the whole of the mortgage market, this means you should be placed with the correct lender first time as they have the knowledge of the market, meaning you should not be declined.


5. Will lenders ask me to put down a larger deposit?

No, there are a number of lenders that will lend to contractors, they will allow deposits as little as 5% (with or without help to buy scheme).


6. I have a joint mortgage with my partner who is in full-time employment. Does that change what mortgages I can access?

The mortgages will be based on which lender you both fit criteria with, as you are a contractor we would look at contractor lenders (regardless of her employment).


7. As a director of a limited company, I take home most of my earnings through dividends rather than a salary. Do lenders count income from dividends as well as salary when applying for a mortgage?

A majority of mortgage lenders will lend based on: Salary & Dividends as income (a small number will lend based on share of net profit, excluding corporation tax).


8. Is it harder to get a mortgage when you get paid a day rate?

No, it is easier to obtain a mortgage based on a day rate contractor rather than using 2 years of self employed accounts, you can usually always borrow more money based on a day rate.


9. Does contracting affect my credit score?

No not at all, your credit score is based on the conduct of your individual accounts rather than your method of income.


10. I’m contracting under an umbrella company. Can I still access specialist contractor mortgages?

Yes absolutely, you can still obtain a contractor mortgage.


Was your question not answered?

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