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Mortgages for Contractors

Best Mortgage Rates

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Mortgages for Contractors

    • 3.89% Initial
    • 5 year fixed
    • 5.9% APRC
    • Cashback Max £1,250
      Free Legals
      Free Valuation
    • Get quotes
    • 3.92% Initial
    • 5 year fixed
    • 6.7% APRC
    • Cashback Max £250
      Free Legals
      Free Valuation
    • Get quotes
    • 3.92% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.94% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.97% Initial
    • 5 year fixed
    • 6.5% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.98% Initial
    • 5 year fixed
    • 6% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.99% Initial
    • 5 year fixed
    • 6.5% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.00% Initial
    • 5 year fixed
    • 6.8% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.00% Initial
    • 5 year fixed
    • 5.9% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.00% Initial
    • 2 year fixed
    • 6.7% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes

Representative example based on a fixed rate mortgage

A mortgage of £375,000 payable over 20 years initially on a fixed rate for 5 years at 4.38% and then at the standard variable rate of 7.65% for the remaining 15 years would require 60 monthly payments of £2,351.88 and then 180 monthly payments of £2,899.55.

The total amount payable would be £663,156.80 which includes interest and product fees of £1,124.

The overall cost for comparison is 6.5% APRC representative.

Early repayment charges may apply.

 Mortgages For Contractors

Contractors may worry that big lenders' lending criteria are too rigid to meet their needs. As long as a contractor can demonstrate to the lender that they can keep repayments up, it is not impossible for them to get a high street lender mortgage. Occasionally referred to as ‘contractor mortgages’, specialist lenders offer mortgages for people who work on a contractual basis. 

Lenders have differing views of what the term contractor refers to, some take it to mean an employee employed by an organization but working on a fixed or short-term contract, others take it to mean self-employed individuals who work through a single company, such as tradesmen or lawyers.

There are a variety of mortgage options for both self-employed and short term and fixed term contractors, depending on what type of contractor category you fall into.

 

Self Employed contractors:

They will generally require a history of your work for a period of time with your net profit figures for a self-employed contractor. Lenders may calculate how much you can borrow as a self-employed contractor differently.

If you multiply your contract day rate by how many days a week you work and multiply that by 48, you might be able to get a rough estimate of how much you could borrow if you multiply this sum by 4 or 4.5.

Professional contractors such as barristers, IT contractors, or accountants may find it easier to find a contractor mortgage, based on their contract rates, since they are less likely to face other limitations.

 

Fixed-term or short-term mortgages

Borrowers on fixed-term contracts may be considered by some high street lenders, provided they have a history of contracting and at least 6 months left on their current contract. It may still be possible for you to get a mortgage with less than 6 months left on your current contract, but you will likely be limited to a small number of specialist lenders.

Despite the fact that there are a variety of mortgages for contractors available, you may find it helpful to speak with an independent mortgage advisor before applying. Besides having professional knowledge of the market, an intermediary can access specialist lenders off the high street which are unavailable to direct applicants.

 

To investigate your contractor mortgage finance options call our broker team or fill in our call back form -  speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464

Mortgages for Contractors Specialist Mortgage Advice
Mortgages for Contractors Specialist Mortgage Advice