Your Contract, Your Income, Your Mortgage
Being a contractor gives you freedom, but it can make borrowing feel like a challenge. High street lenders often don’t know how to assess your income, meaning you’re either offered less than you can afford or declined altogether. At Mortgage-Tek, we specialise in securing mortgages for contractors by working with lenders who understand the true value of your contract.
We work with more than 120 mortgage lenders, including
Are you a contractor searching for a new mortgage?
We understand securing a mortgage as a contractor can be more complex than for a traditional employee, but with the right guidance, you can successfully secure a mortgage.
Have review of the information below, it will walk you through everything you need to know about contractor mortgages, from eligibility and application tips to securing the best deal.
01
What is a contractor mortgage ?
A contractor mortgage is designed for professionals who earn through contracts, assignments, or day rates rather than permanent employment. Unlike traditional mortgages, where lenders require payslips or years of accounts, contractor mortgages assess your affordability based on your contract details — such as your day rate or fixed-term agreement.
This means you can often borrow as much as a permanent employee on an equivalent salary, without needing to provide extensive accounts or trading history.
02
The High-Street Mortgage Problem for Contractors
Most high-street lenders use a rigid, one-size-fits-all approach that doesn’t suit contractors. They often ask for two or three years of accounts, misclassify you as self-employed, or fail to recognise your actual day rate and contract value. This means your true earning potential isn’t properly considered, and you could be told you qualify for far less than you actually can. With the wrong advice, even financially strong contractors are often unfairly blocked from the property market entirely.
Eligibility Criteria for Contractor Mortgages
While requirements can vary depending on the lender, here are the most common eligibility criteria for contractor mortgages:
Contract History:
Lenders consider your contracting history. At least 12 months — ideally two years — of consistent work can improve your approval chances.
Income:
Your income will typically be assessed based on your day rate or annual contract value, and lenders may consider multiple years of contract income.
Credit Score:
A good credit score (above 600) can help improve your chances of securing a contractor mortgage with a favorable interest rate.
Deposit:
Like any mortgage, you will need a deposit, which can range from 5% to 20% of the property value, depending on the lender and the type of mortgage.
Contract Length:
Lenders may consider your contract length. Longer contracts offer more security, but even short-term or rolling ones can still qualify for a mortgage.
Industry Stability:
Lenders consider your industry’s stability and demand for your skills. Working in a stable or high-demand sector can improve eligibility.
How to Get a Contractor Mortgage
Getting a contractor mortgage is slightly different from a traditional mortgage.
Here’s a step-by-step guide to help you navigate the process:
Prepare Your Documents
Before you apply for a contractor mortgage, make sure you have all the necessary paperwork:
- Proof of income (contract details, pay slips, tax returns, bank statements)
- Evidence of your contracting history
- Your credit report
- Deposit details
Find a Specialist Lender or Broker
While many mainstream lenders offer contractor mortgages, it’s often better to use a mortgage broker who specialises in contractor mortgages.
A broker will help you compare deals across multiple lenders, potentially saving you time and money.
Submit Your Application
Once you’ve chosen a lender or broker, submit your application along with the required documents.
The lender will assess your financial situation and approve or deny your application based on your contract work, income, and credit score.
Get Mortgage Offer
If your application is successful, the lender will provide a mortgage offer that includes the loan amount, interest rate, and repayment terms.
It’s important to review the offer carefully before accepting.
Complete the Process
Once the mortgage offer is accepted, you will go through the legal and administrative process, including property valuation and signing the final contract.
Once completed, you’ll have access to your mortgage.
The Mortgage-Tek Advantage for Contractors
There are several advantages to getting a contractor mortgage:
Your contracting career is about control, and your mortgage process should be too. At Mortgage-Tek, we don’t just find you a mortgage; we empower you to get the best deal, with a process designed for your unique financial situation.
Here’s how we specifically benefit you as a contractor:
Maximise Your Borrowing Power:
We connect you with lenders who use your gross day rate, not just your taxed income, to significantly increase your borrowing potential.
Overcome the 'Years of Accounts' Barrier:
Secure a mortgage with as little as 3-6 months of contracting history, bypassing the rigid criteria of high-street banks.
Access Exclusive, Better Deals:
Gain access to competitive interest rates and exclusive products from specialist lenders not available on the high street.
Get a Decision Faster:
Our expert knowledge and direct lender relationships streamline the underwriting process, getting you a swift and positive outcome.
Your Contract Is Your Strength:
We transform your contract from a perceived risk into a strength, highlighting its stability and value to lenders.
With Mortgage-Tek, your flexible career doesn’t hold you back — it works in your favour.
Types of Contractor Mortgages
There are different types of contractor mortgages, each catering to different financial situations:
Fixed-Rate Mortgages:
These mortgages keep the same interest rate for a set term, offering stability and predictable monthly payments for contractors.
Variable-Rate Mortgages:
These mortgages change with market rates, providing flexibility but the risk of higher payments if rates rise.
Tracker Rate Mortgages:
These mortgages move with the Bank of England’s base rate, so payments may rise or fall, offering flexibility.
Why Choose Mortgage-Tek Mortgage Services
Get your right and on-point advice by our OMA-approved brokers. Working with Mortgage-Tek is simple and straightforward, here are the benefits we offer to our worthy clients.Â
Specialist Expertise
Years of experience helping IT contractors navigate complex mortgage applications.
Direct Lender Access
Partnerships with lenders who understand contract-based IT income.
Tailored Solutions
Applications structured around your full earnings, including contracts and bonuses.
Transparent Process
Honest, jargon-free advice at every stage, ensuring clarity and confidence throughout your journey.
Ongoing Support
Continuous assistance to manage your mortgage, remortgage smoothly, and grow your property
Competitive Rates
Exclusive mortgage deals designed to maximise your borrowing power and save you money.
Your Estimated Borrowing Amount
Frequently Asked Question
Do I need years of accounts to get a contractor mortgage?
No. Many lenders will use your current contract or day rate to calculate your income, meaning years of accounts are not necessary.
How do lenders calculate my income?
Most contractor-friendly lenders use your day rate, multiplied by a typical work year of 46–48 weeks. This gives them a clear and fair assessment of your annual earnings.
Can I get a mortgage if I’ve just started contracting?
Yes. Some lenders will accept applications from contractors with as little as 3-6 months of experience, particularly if you have a strong track record in your field.
Are rates higher for contractor mortgages?
Not necessarily. We work with lenders who offer competitive rates that are often similar to those on standard mortgage products.
Can I remortgage as a contractor?
Absolutely. Many of our clients remortgage to secure better rates, release equity, or finance a new property while working on contracts.
TESTIMONIALS
What people say
Mo is extremely professional and has helped me on multiple occasions with new mortgage and remortgage transactions for the past 3 years. I found MortgageTek and the team to be efficient, have constant communication with me every step of the way, and be outstanding plus helpful in resolving any issues that may arise along the way. I highly recommend MortgageTek for any future transaction as Mo always gets good rates
GORETTY DIAS
Customer
Would thoroughly recommend using Mortgagetek if you are a contractor. Mortgage applications are confusing enough as it is, so it’s great you can depend on the application being made smoothly by the team at Mortgagetek. Kate was excellent in keeping me updated and dealing with any questions I had. Will use them again.
JAMES MORTON
Customer
Mo has helped me with multiple mortgage brokering both for new, remortgage and BTL transactions for about 4 years. I’ve found Mo and his team to be efficient, have clear and constant communication with me every step of the way, and very helpful to resolve any issues that may arise along the way. I unreservedly recommend MortgageTek.
SEUN OLOWOJEBUTU
Customer