Top Tips to Improve Your Mortgage Chances as a Contractor
Top Tips to Improve Your Mortgage Chances as a Contractor
Blog Article
Getting a mortgage as a contractor is very achievable—but you may need to present your finances differently compared to traditional employees. Lenders want reassurance that your income is stable and sustainable, even without a fixed salary.
Here are the top tips to boost your chances of mortgage approval as a contractor.
1. Keep Your Paperwork Organised
Make sure you have up-to-date documents ready:
Current contract (with your rate and end date)
CV or work history showing experience in your field
Bank statements (personal and business if applicable)
Proof of ID and address
Being organised speeds up the process and shows lenders you're financially responsible.
2. Minimise Gaps Between Contracts
Lenders prefer to see continuous employment or minimal breaks between contracts. If you’ve had a long gap, be prepared to explain it—especially if it was due to travel, illness, or a planned break.
3. Improve Your Credit Score
Your credit report plays a key role in any mortgage decision. To boost it:
Register on the electoral roll
Pay bills and credit cards on time
Reduce overall debt balances
Avoid applying for multiple loans or credit cards close to your mortgage application
4. Save a Larger Deposit
A bigger deposit gives you access to better interest rates and more lender options. Most contractors aim for at least 10%, but 15–20% can significantly improve your offers.
5. Work With a Specialist Mortgage Broker
A contractor-friendly mortgage broker will:
Present your income in the best light
Use your contract rate rather than your tax returns
Match you with lenders who understand your employment type
This makes all the difference in how much you can borrow—and how smoothly the process goes.
Final Thoughts
Contractors don’t need to struggle to get mortgages. With the right preparation and expert help, you can improve your chances and secure a great deal.
Contractor Mortgage Solutions is here to help you every step of the way—from first enquiry to final approval.