How to Secure a Mortgage as a First-Time Contractor Buyer
How to Secure a Mortgage as a First-Time Contractor Buyer
Blog Article
Can Contractors Get a Mortgage as First-Time Buyers?
Yes! Being a contractor doesn’t stop you from getting on the property ladder. While the process may be different from traditional employment, with the right support and preparation, first-time contractor buyers can secure great mortgage deals.
1. Prove Your Income Clearly
Lenders want to see that you can afford the repayments. As a contractor, this means showing your current contract, bank statements, and possibly your tax returns or company accounts. If you’re paid a day rate, many lenders will calculate your income using this formula:
Day rate × 5 days × 46–48 weeks
This gives them a reliable estimate of your annual income.
2. Build a Good Credit Profile
Before applying, check your credit score. Pay off debts, avoid missed payments, and don’t apply for new credit cards or loans right before your mortgage application. A clean credit history can boost your chances significantly.
3. Save a Decent Deposit
While 5% deposits are possible, having 10% or more saved will make a big difference. A larger deposit reduces the lender’s risk, improves your loan-to-value (LTV) ratio, and could get you a better interest rate.
4. Minimise Gaps Between Contracts
Lenders like consistency. If you’re new to contracting, try to avoid long gaps between contracts. Even a few months of consistent work can help build trust with the lender.
5. Work with a Specialist Broker
Contractor-friendly brokers understand how to present your income and financial situation to the right lenders. They can guide you through the process and increase your chances of approval on the first try.
Let’s Get You on the Property Ladder
Buying your first home as a contractor may seem complex, but it doesn’t have to be.
Speak to Contractor Mortgage Solutions
We specialise in helping first-time contractor buyers secure their ideal mortgage. Reach out today and take your first step towards homeownership.