The short answer is yes.
Being a contractor doesn’t stop you from getting a mortgage. In fact, many lenders are happy to lend to contractors, freelancers and self-employed professionals. The challenge is that not every lender assesses contractor income in the same way.
At Mortgage Links, we help contractors find mortgage lenders who understand how contract income works, often allowing you to borrow more than if your income was assessed using traditional self-employed methods.
Why Is Getting a Mortgage as a Contractor Different?
Most employed applicants simply provide payslips and maybe a P60.
Contractors are paid differently, whether that’s through a limited company, umbrella company or day rate contract. Because of this, some lenders struggle to assess income correctly, while others have specialist underwriting designed specifically for contractors.
Choosing the right lender can make a significant difference to how much you can borrow.
How Do Mortgage Lenders Calculate Contractor Income?
This depends entirely on the lender.
Some lenders will use:
- Your annual salary and dividends
- Your company’s net profit
- Your SA302 tax calculations
- Your average income over the last one or two years
- Your current contract day rate
For many contractors, the day rate calculation is by far the most favourable.
For example:
If you earn £500 per day, work 5 days a week and the lender uses 46 working weeks per year, your annual income could be assessed as:
£500 × 5 × 46 = £115,000
This can often produce a much higher borrowing amount than using salary and dividends alone.
Do I Need Several Years of Accounts?
Not always.
While some lenders require two or three years of accounts, many contractor-friendly lenders are far more flexible.
Depending on your circumstances, you may only need:
- A current contract
- Evidence of previous contracting history
- Recent bank statements
- Proof of identification
Some lenders will even consider applicants who have only recently become contractors if they have previously worked in the same industry.
Can First-Time Contractor Mortgages Be Approved?
Absolutely.
Being a first-time buyer doesn’t prevent you obtaining a contractor mortgage.
Lenders will still assess:
- Your income
- Deposit
- Credit history
- Monthly commitments
- Affordability
Provided these are suitable, being a contractor is rarely a barrier.
What Deposit Will I Need?
As with any mortgage, the larger your deposit, the more mortgage products are usually available.
Typical minimum deposits are:
- 5% for some residential purchases
- 10% often provides more lender choice
- 15–25% may be required in more specialist circumstances
The exact deposit required depends on both the lender and your individual circumstances.
Can IT Contractors Get Better Mortgage Options?
IT contractors are one of the most commonly accepted contractor professions.
Many lenders have extensive experience assessing applicants working in:
- IT
- Software development
- Cyber security
- Project management
- Engineering
- Finance
- Oil and gas
- Construction
- Healthcare
The important factor isn’t usually the industry itself—it’s the stability of your contracting history and how your income is evidenced.
What Documents Will I Need?
Although requirements vary between lenders, you’ll usually need:
- Current contract
- Previous contract (if applicable)
- Recent bank statements
- Proof of ID and address
- Evidence of your deposit
Some lenders may request additional documents depending on your trading structure.
Can I Remortgage as a Contractor?
Yes.
Whether you’re looking to:
- Secure a better interest rate
- Release equity
- Borrow more for home improvements
- Consolidate borrowing (where appropriate)
There are lenders that understand contractor income and can assess your affordability using methods designed specifically for contractors.
Why Use a Mortgage Broker?
Because contractor mortgages are a specialist area.
One lender may assess your income at £65,000, while another could use your contract rate and assess it at over £110,000.
That difference could significantly increase the amount you’re able to borrow.
At Mortgage Links, we search across a wide range of lenders to find those most suited to your circumstances, helping you avoid unnecessary declines and giving you the best chance of securing the right mortgage.
Speak to Mortgage Links
Whether you’re an IT contractor, engineer, consultant, healthcare professional or any other type of contractor, we’re here to help.
We’ll explain your options, calculate how much you may be able to borrow and recommend lenders that understand contractor income.
Get in touch with Mortgage Links today for friendly, fee-free mortgage advice tailored to contractors.
🔗 Helpful Links
- Loan to Value Explained — The Complete Guide to Smarter Mortgage Decisions
- Why Use a Mortgage Broker? Top 7 Reasons to Get Expert Mortgage Advice
- AIPs, DIPs and MIPs- What’s the Difference?
- 7 Key Costs To Budget For When Buying A Home
- MoneyHelper (UK government-backed)
- FCA
🚀 Book a Free Consultation Today
Speaking to a specialist broker can help you understand how much you may be able to borrow using retained profits rather than traditional salary and dividend calculations.
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