How to get a mortgage as a contractor


1. Use a mortgage specialist.
It’s an outside the norm situation, therefore outside the norm experience is required. Going to your average mortgage broker could just end up becoming a very frustrating process, as you don’t fit the template that they follow to find something suitable. Also, a specialist broker can support you in making the process far smoother and pain-free.

2. Have a good sized deposit.
The average required deposit is 10% – 25%. The credit crunch changed things so that those 100% mortgages are a thing of the past. As a contractor you really need to make sure you’re able to put your money where your mouth is so make sure you’ve got a decent deposit behind you. A minimum of a 10% deposit stands you in good stead.

3. Check your contract.
Mortgage lenders will want to see your contract and it needs to reflect your current situation. So if there are any changes that have happened recently, get your contract updated to show this. This is a practical step to take not just for the purposes of a mortgage, so definitely an essential.

4. Budget wisely.
Lenders may be willing to lend based on a multiple of your contract rate but you could end up paying higher repayments amount that realistically are not affordable on a long term basis. Give yourself room to manage fluctuation in interest rates. A crippling mortgage is the last thing you need in-between contracts. Calculate wisely and be realistic.

5. Prepare your bank statements well.
As a contractor it’s understood that bank statements are important in supporting your mortgage application. Have you thought about the quality of your statements?  It would be prudent to think of the type of spending that you do, such as gambling transactions. These could act as red flags in the application process.

6. Protect your credit rating.
Take care of your credit rating. Everyone knows that a good healthy credit rating is a prerequisite in making a mortgage application. However, as a contractor we cannot stress this point more.  Even if you’ve made sure all of the above points are checked, and covered but then have failed to take care of your credit rating, you could find things not working out as rosy as you anticipated. Make sure all your ducks are in a row and don’t neglect your credit rating.

Needing some more specialist advice on getting a mortgage? Speak to our tax expert Pratik on 0208 446 6112 or drop him an email at

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