Mortgages
Contractor mortgage advice
If you work on a contract basis we can often lend based on your hourly or daily rate of pay, which typically gives a generous maximum mortgage lend.
Our Contractor Mortgage Advice
A contractor is someone who works for a defined rate of pay, for a specified period of time, contractors are not usually employed on a permanent basis.
This will include individuals who are self employed and pay their own tax, and those who are employed via an umbrella company who deduct their tax, and people who are essentially employed but on a fixed/short term contract e.g. 12 months.
If you work on a contract basis we can often lend based on your hourly or daily rate of pay, which typically gives a generous maximum mortgage lend.
Typically you will need to demonstrate that you have worked on a contract basis for a minimum of 12 months prior to applying for a mortgage.
Frequently Asked Questions
How do contractor mortgages differ from standard mortgages?
Contractor mortgages are tailored to accommodate the irregular income patterns of contractors. Lenders may assess your mortgage application based on your contract rates, history of earnings, and the stability of your contracts, rather than relying solely on traditional payslips or a permanent employment history.
What documents do I need for a contractor mortgage?
To apply for a contractor mortgage, you will typically need:
- Current contract: Details of your daily or hourly rate and contract duration.
- Proof of income: Recent bank statements, contractor invoices, and previous tax returns.
- Accountant’s reference: A letter from your accountant confirming your income and financial stability.
- Credit history: A good credit score is important, as it demonstrates financial reliability.
Can I get a contractor mortgage with a short-term contract?
Yes, you can still secure a mortgage with a short-term contract, but lenders may require additional evidence of your ability to continue earning in the future. Demonstrating a history of successful contract renewals or multiple contracts can strengthen your application.
How much can I borrow?
To get an idea of how much you could borrow, you could do a calculation based on your day rate. Multiply your day rate by the number of days you work a week, and the number of weeks you work a year (no more than 48 to include holiday, even if you work longer than this in reality). This will give you your average annual income, which you can use to look at mortgage deals.
Your home may be repossessed if you do not keep up repayments on your mortgage
Genius Mortgage Advice
Why choose us?
We take the time to understand your requirements, find a way forward whatever the circumstances, and then stay the course until your mortgage is offered, and the transaction has completed.
We want to develop relationships with borrowers that last as long as your mortgage term, and are as wide as to include family and friends.