As a contractor, you might earn significantly more than permanent colleagues in similar roles. Yet when it comes to getting a mortgage, you face completely different rules. Understanding these differences could save you thousands.
How Lenders View Your Income Differently
Income Verification
Permanent employees: Show 3-6 months of payslips
Contractors: Need 12-24 months of accounts, SA302s, or contract copies
Affordability Calculations
Permanent staff: Typically get 4-4.5x salary
Contractors: Can access 4.5-5.5x annualized day rate (£500/day = £110k = up to £605k mortgage)
Contract Length Matters
While permies just need a probation period passed, contractors often need:
✓ Minimum 12 weeks remaining on current contract
✓ 2+ years in same industry preferred
✓ Future contract potential considered by specialist lenders
The Hidden Advantages for Contractors
Surprisingly, contracting can actually help your mortgage application:
• Higher earning potential means you may qualify for larger loans
• Specialist lenders offer more flexible criteria
• Limited company structure allows for tax-efficient income presentation
3 Actionable Tips for Contractors
Get your paperwork in order early (contracts, accounts, SA302s)
Work with a broker who understands contractor finance
Don't accept the first offer - specialist lenders often have better deals
Did You Know?
Many contractors secure mortgages at the same interest rates as permanent staff, just by using the right lender.
Struggling to Get Fair Treatment?
We've helped hundreds of contractors get mortgages that reflect their true earning power. Get your free, no-obligation assessment today.
Why This Works For Your Business:
• Highlights key pain points contractors face
• Positions you as the expert solution
• Includes clear CTAs to drive conversions
• Uses simple comparisons to educate readers
Would you like me to focus on any specific aspect of contractor mortgages for the next article? Perhaps diving deeper into IR35 implications or first-time buyer strategies?
New chat