Getting a Mortgage as a Contractor — Here's How It Works

Our specialty lies in providing tailor-made mortgage solutions for loans over £1 million. Our success is underpinned by our established relationships with private banks, mainstream banks, and specialist lenders. We pride ourselves on our personalised approach, understanding our clients’ unique profiles to match them with the right financial institution.  Our longstanding industry connections often enable us to unlock exclusive deals that transcend typical lending criteria. Clients looking for an expert mortgage broker value our proficiency and dedication to securing the best loan terms.

We thrive on sourcing unconventional mortgages, be it for non-standard property types, self-employment income, or foreign income sources. Mortgages are multifaceted, demanding a deep understanding of the market and strong banking relationships to secure the best deals. As a specialist in complex mortgages, we offer the expert knowledge and professional relationships essential to navigate these challenging scenarios. If there is a solution available for your complex mortgage needs, we will find it.

Our experience spans across a variety of asset classes and client types. From individuals looking to buy their trading premises to large organisations refinancing their commercial real estate portfolios.  We often engage multiple lenders simultaneously, presenting each deal with complete transparency.  As lenders are aware that they are in a competitive tendering process, we encourage the provision of the best possible rates. Our partners experience the difference that our client-centred approach makes in their commercial and real estate financing.

Navigating the complexities of buy to let mortgages can be demanding, particularly when faced with portfolio landlord criteria or seeking financing for an HMO or multi-unit block. As regulations for BTL Mortgages become increasingly complex, it’s more important than ever to have an expert broker to guide you through the diverse criteria on stress tests, property types, and portfolio restrictions. We demystify the complexities of BTL mortgages. We specialise in securing portfolio loans from multiple lenders, resulting in lower rates and higher leveraging.

Business owners encounter distinct challenges when pursuing mortgages, including the need to substantiate income and demonstrate stability. Our tailored mortgage solutions reflect the unique income structures of business owners. Traditional lenders tend to calculate their loan offers based on historical dividends, potentially underestimating the business owner’s real income. By partnering with us, you can take advantage of our expertise in sourcing mortgages designed for business owners. We carefully assess your income, liaising with lenders who consider your profit share, the latest year’s profit, or pre-tax profits to maximise your borrowing potential.

Sourcing the best bridging or development terms requires industry knowledge and expertise. Our team excels in sourcing deals for both non-experienced developers and seasoned professionals. We have access to low-rate bridging loans through strategic partnerships with building societies and private banks. Moreover, we specialise in arranging high-value self-build mortgages, ensuring that your financing needs are met throughout the entire development process. With our guidance, you can embark on your projects with confidence, secure in the knowledge that we will procure the most favourable rates and terms available.

Yes. Specialist lenders on our panel assess contractor mortgages based on your contract day rate, not annual accounts. You will need to show your current contract (signed, showing your daily rate) and recent bank statements showing contract payments. Most lenders require a minimum of 6 months of bank statements. Accounts are not required by specialist lenders.

Using the day rate calculation, a contractor earning £500/day can typically borrow up to £495,000–£550,000. The calculation: £500 × 220 working days = £110,000 annualised income × 4.5× multiplier = £495,000. Some specialist lenders will use a 5× multiplier, giving a maximum of £550,000 for the same day rate. The exact figure depends on your credit history, deposit, and the lender we match you with.

No. Being inside IR35 does not prevent you from getting a contractor mortgage with specialist lenders. Our panel of lenders assesses your gross contract rate regardless of your IR35 status. We have arranged mortgages for contractors on both sides of the IR35 determination and will confirm the right approach at our first conversation.

Yes. Many specialist lenders have no minimum contracting history requirement — some will lend from day one of your first contract. Others require three to six months of contracting history. We will identify which lenders are appropriate for your specific length of contracting experience before you apply.

Not necessarily. While some lenders prefer 12 months of contracting history, specialist lenders in our network will consider applicants with significantly less. The minimum requirement varies by lender and by the size of the contract. We will assess your specific situation and confirm which lenders are appropriate before making any application.

We work with specialist lenders who understand that contractors take breaks between contracts for personal reasons, career development, or simply because contracts end. A gap of 3–6 months is typically not a problem with the right lender. We know which lenders are flexible on employment continuity and we present your application to make the gap understandable to them.

A standard mortgage is assessed on your payslip or tax returns. A contractor mortgage uses your daily contract rate multiplied by the number of working days in a year to produce an annualised income figure. This method typically produces a significantly higher borrowing figure for contractors than the standard payslip method — particularly for those operating through a limited company or umbrella who take a tax-efficient salary.