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Mortgages for Contractors

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Trying to get a mortgage as a contractor can be a bit of a headache. There are few lenders who cater to contractors, despite how popular self-employment has become over recent years. This can make finding information and actually obtaining a mortgage more difficult than it should be. Thankfully, there are lenders out there who are willing to work with contractors to help them achieve their mortgage as a first-time buyer.

Why getting a mortgage seems difficult

The standard bank mortgage has a set criterion for any first-time buyers looking to apply for a mortgage. This criterion does not include self-employed individuals like contractors. In fact, many mortgage lenders aren’t willing to deal with applicants that are contractors because they don’t fit into the neat little box that full-time applicants do.

With a full-time employee applicant, it’s easy to check their credit history and get the exact amount they earn per annum from their employer. As long as they have a 10% deposit (minimum), and are expected to be able to meet the repayment fees, full-time applicants are rarely told they can’t take out a mortgage.

For a contractor, the process is said to be more complicated, but that isn’t quite the truth of the matter.

Is it possible to get a mortgage as a contractor?

The short answer is yes. Being a contractor should not cause as much trouble now as it used to. As long as you have the right documentation, you’re up to date with your accounts, and you have a positive credit rating, there’s no real reason your mortgage application should be denied.

You are, however, more likely to be denied through a bank or building society, as opposed to seeking a mortgage through a specialist lender. Specialist financial lenders have a different approach to mortgages and will have dealt with similar applicants, like yourself, in the past.

What documentation do contractors need to apply?

To apply for a mortgage, any contractor should be aware that financial lenders all have their own policies. When in doubt, the best course of action you can take is to reach out to those lenders and request a list of documentation that you will need during your application process.

That said, there are several common pieces of documentation that are commonly asked for when a contractor applies for a mortgage.

  • Up to three years of business accounts.
  • Your end of year tax calculation from HMRC (again, up to three years’ worth).
  • A copy of any of your current work contracts.
  • Three months of bank statements, showing your income.
  • Proof of address.
  • Proof of identification.

Contractor-friendly banks

They are few, but if you do prefer to go to a bank for your lending needs, we’ve rounded up a few contractor-friendly banks that would be happy to take on your application:

  • Halifax – also accepts applications from overseas contractors.
  • Leeds Building Society – Calculates income based on 12 months of work.
  • Kensington – Considers contractors with gaps in their work history.

If you’re unsure which path is best for you, we have access to advisors and brokers who have expertise in this area and can offer you advice on your options as well as search for suitable options within the whole of market lenders.

Contact us at Online Mortgage Guru on 0345 3669799 or email us via and we will put you in touch with a suitable specialist to handle your enquiry. 

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