Contractor Mortgages
If you are a Limited Company contractor looking for a mortgage, then you have come to the right place. We will help you secure the best mortgage deal with the help of our specialist contractor mortgage brokers.
Our team of brokers have a wealth of experience when it comes to working with limited company contractors. They understand the unique requirements of the contractors and they can easily help you secure a mortgage based on your contract rate alone. We only work with FCA-accredited and specialist contractor mortgage brokers in the UK.
Limited company contractors can apply for up to a 95% mortgage on any property type. Our team of financial advisors will help you secure the best mortgage deal at competitive rates.
How much you can borrow depends on various factors like your income, mortgage deposit, borrowing period, mortgage type and whether you are a first-time buyer or not.
Regardless of your status, with the help of specialist contractor mortgage brokers and contractor-friendly lenders, we will help you secure the best possible mortgage deal at the best mortgage rates.
It is important that to secure the best mortgage deal, you need 2 things:
- Specialist contractor mortgage broker (FCA Accredited)
- Contractor-Friendly Mortgage Lender
High-street lenders may not necessarily understand the unique professional circumstances of a limited company contractor. Therefore, it is important to apply with a mortgage lender who understands and has experience in dealing with contractor mortgages.
Before we go any further, let us first explain the term ‘Contractor Mortgages‘ to you.
Contractor Mortgages
A contractor mortgage is a type of mortgage tailored specifically for contractors who do not have permanent employment. The amount you can borrow is determined based on your annualised contract rate. This mortgage is designed to accommodate the unique financial circumstances of contractors, freelancers, and self-employed professionals, whose income may fluctuate and be less predictable than that of individuals in regular salaried positions.
Traditional mortgage lenders often depend on consistent, documented income to assess a borrower’s ability to repay the loan. However, a contractor mortgage considers the nature of contract work, enabling lenders to evaluate income based on contract rates, work history, and projected future earnings. This type of mortgage usually requires proof of income through contracts, bank statements, and tax returns, rather than standard payslips and employment verification.
A contractor-friendly mortgage lender can offer flexible terms and competitive rates, making homeownership more accessible to those with non-traditional employment arrangements.
Our Partner Mortgage Broker
| Mortgage Broker | Services | Company Profile |
|---|---|---|
 |
Mortgage Advance Centre Mortgage Advance Centre are experienced Mortgage Advisers who specialise in helping contractors all over the UK secure mortgages. They have 15 years of experience working with Contractors |
View Profile |
Legal Disclaimer: LimitedCompanyUK.com cannot be held liable due to non-performance or for any issues arising from the mortgage brokers on our list. You need to do the complete due diligence before hiring/appointing any of them.
Documents needed to apply for the mortgage
The following documents are required to secure a contractor mortgage:
- Your contract confirming the contract rate (a signed copy is required)
- 3 months’ bank statements to confirm your contract earnings
- An up-to-date CV confirming your employment history
- ID proof
Different Mortgage Types
- First-Time Buyer
- Moving Home
- Help to Buy
- Buy-to-Let
- Remortgage
- Interest only mortgages
- Repayment: Interest and Capital
- Low deposit mortgages with high loan-to-value (LTV)
- Offset mortgages
- Affordable Housing Scheme
How much can you borrow as a Limited Company Contractor?
Each contractor and lender has unique criteria for contractor mortgages. Consequently, the amount you can borrow will depend on several factors, including:
- Your credit history
- The size of the mortgage
- The deposit amount you are willing to pay
- Your existing financial commitments
- The mortgage term
- How long you’ve been contracting
- Your contract rate and the duration of the contract
Mortgage lenders may offer loans of up to 4 to 5 times your annual income.
A straightforward way to estimate how much you can borrow is to:
Multiply your current daily rate by the number of working days. Then, multiply the result by 48 weeks, and finally multiply the total by 5.
This calculation will give you an idea of the amount you may be able to borrow.
Top 10 Mortgage Lenders
- Halifax
- Barclays
- Clydesdale
- Nationwide Building Society
- Furness Building Society
- Accord Mortgages
- HSBC
- Kensington
- Virgin Money
- Scottish Widows
Contractor Friendly Mortgage Mortgage Lenders
- Skipton Building Society
- Natwest
- Leeds Building Society
- Metro Bank
- Saffron Building Society
- The Furness and Newbury Building Societies
- Abbey
- Santander
- The Mortgage Works (TMW)
- Kent Reliance
- Godiva Mortgages
- Coventry Building Society
- TSB
Top 10 Contractor Mortgage Brokers
- Mortgage Advance Centre
- Freelancer Financials
- CMME
- Cleerly
- CLS Money
- John Charcol
- Mortgage Knight
- Professional Contractor Mortgages (PCM)
- Super Contractors
- L&M Mortgages
Contractor Mortgage FAQs
Will lenders put me on a higher rate because I am a contractor?
While it is true that not all lenders can lend to contractors, the lenders who do lend will never penalise you on rates due to your employment status.
Do I require a larger deposit as a contractor?
Not necessarily. As long as you meet lenders’ credit score requirements for higher loan-to-value products, there is no reason why being a contractor would impact the level of deposit required.
How long do I need to have been contracting to apply for a mortgage?
This varies by lender. Some need you to have been contracting for a minimum of 12 months but there are others who will consider “day one” contractors, particularly if they have a strong employment track record.
Do I need 2 years’ accounts to get a mortgage as a contractor?
Absolutely Not. This is a common misconception, but a good contract is enough to demonstrate your earning potential.
As a contractor, am I labelled high risk by mortgage lenders?
Maybe 10 years ago but these days, lenders understand that more and more people do not have a linear employment structure.
Does it matter if I am inside or outside IR35?
Not really. There are a few subtle differences in how your income is calculated but regardless of your IR35 status, your contract is the main vehicle to obtaining a mortgage.
How many payslips do I need to show if I work through an umbrella company?
Again, this differs by lender. We ask for 3 months’ payslips as a rule but this is not set in stone. Some lenders do not even need to see payslips as part of the application process and will only ask for your contract and bank statements.
Can I still obtain a mortgage if I have only recently gone inside/outside IR35?
Absolutely. This may look like a mess in terms of trying to prove your income but just speak to Mortgage Advance Centre and let us do the work.
If you have any questions of your own, please do not hesitate to contact us.
Your home may be repossessed if you do not keep up repayments on your mortgage.