Getting a mortgage as a contractor is possible but not straightforward.
A contractor can be defined in several ways:
- Self-employed contractor
- A contracted agency worker
- Fixed-term contractor (with a history of other contracts)
- Contractor working under umbrella companies
- Professional contractor i.e. accountant or legal professional
- Contractor recently self-employed
As any form of contractor your stability can vary, and in the eyes of a lender you are deemed a higher risk.
While it may be a little more complex to get a mortgage as a contractor, the market is still very much open to you, especially as this type of work is becoming more popular when compared to full-time employment.
As with self-employed and freelance individuals regular mortgage products are available to you as a contractor. However, some will have a steadier income than others and there may be options that would fit better, such as offset or flexible mortgages.
Just like anyone else you will be assessed on criteria such as your credit score and history, your income and your affordability.
The most important thing is proving your income as a contractor. For this you will usually be required to provide the following:
- 12 months contact/employment history
- Evidence of current/imminent contracts
Every lender will have their own criteria and methods for assessing an application from a contractor, finding one that matches your individual circumstances is paramount.
As every case is different there is no one-fits-all option or answer. By speaking with an experienced and specialist mortgage advisor your application can be prepared to your individual needs and will be placed with a lender who matches your criteria.
If you’re unsure what to do next or would like to know more about your options, get in touch and we’d be happy to put you in touch with an appropriate advisor.