Who are the Best Lenders for Contractor Mortgages?

IT Contractor

 

Maximise your mortgage borrowing based on a contracted daily rate

 

Mortgage lenders are increasingly coming to terms with the fact that work roles are changing and more experienced individuals are choosing dynamic work arrangements. We are seeing an increasing number of UK banks and building societies who are becoming more contractor friendly.

Traditionally, mortgage lenders work out your maximum mortgage borrowing based on gross annual income from employment, your net profit or an average of your self-assessment tax returns (SA302’s).

However, Contractor Friendly mortgage lenders are different. They will calculate how much you can borrow based on your contracted daily rate. There has to be evidence of regularity and continuous contractual work in order to do this.

 

How much can I borrow?

 

Use our brand new contractor mortgage calculator to work out how much you could borrow:

Affordability Calculator

➡ Contractor Mortgage Calculator

 

Example borrowing:

£340 daily rate = a potential mortgage loan of £397,800

Please note: Lenders will vary with regards to the number of weeks in the year in which they will multiply the final calculation. This is down to individual lender risk assessment.

 

Can I get a contractor mortgage with a limited company?

Yes, there are lenders who will consider a mortgage based on a daily rate even if you facilitate your contract via a Ltd Company.

 

What is the maximum I can borrow?

We have lenders that can go to 95% loan to value for contractor mortgages.

 

What are the lender requirements?

Mortgage lenders like to see a history of previous contractor experience and continuous work or regularity of income. Some lenders will ask for your previous 12 months contracts and they generally don’t like to see more than a 6-week gap between each contract start and end date. Holidays are permitted.

 

Basic mortgage lender requirements:

  • A copy of your CV
  • 3 months business bank statements (if Ltd Company)
  • 3 months personal bank statements
  • A copy of your current contract and previous contracts over the last 12 months

 

Which Lenders offer Contractor Mortgages?

The best contractor mortgage lenders are:

  • Accord (but not for daily rate contractors)
  • Buckinghamshire
  • Clydesdale
  • Coventry
  • Halifax
  • Metro Bank
  • Natwest (minimum £75,000 income per annum)
  • The Mortgage Lender

 

Before you approach these lenders, please consider our award winning mortgage brokers who won’t charge you any fees to process your mortgage for you.

We will save you time and money and we can take away all of the application hassle and put you with the right lender and manage your application all the way through to completion.

➡ Get Started on your Mortgage

Highly recommended Glow mortgages. Our advisor, Ben, was so responsive. He was available at all times of the day and even answered back quickly at the weekends. The whole process from start to finish was so stress free I can't believe how easy it has been. I couldn't recommend people to use this company enough. I would definitely use the service again when it comes to remortgaging.
Rachael Mccrae
Rachael M.
19:19 06 Sep 19
Ben at Glow has been the most crucial and reliable point of contact throughout the entire first time buyer experience. He replies swiftly, he replies out of hours, and he goes above and beyond to help arrange everything from the best mortgage to various insurances and provides a very high standard of accurate general information. Not only that, but the whole thing is digital, from the communication to the document verification - a time-saving and absolutely imperative aspect of the process. Hopefully conveyancers and such will follow suit here, because the rest of the process outside of Glow's involvement is archaic and is in desperate need of modernisation. Ben is doing all he can to make this happen and Glow will go far as the average buyer starts creeping towards the new generations. I would invest in this company if I could. Absolutely 10/10 without question.
Clive Ardern
Clive A.
21:05 31 Jul 19
Absolutely first class! Ben and Glow are fantastic.. Moving with the times with their instant messaging service. This is the way business is going and its great to see a service such as this be done this way. After struggling to obtain a mortgage with various lenders Ben had me an offer in less than a week. Incredible!Can't wait to move into my first place and its all thanks to Glow.. My thanks go out to you all!
Toby Poirier
Toby P.
15:11 10 Jun 19

★ ★ ★ ★ ★
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Elsewhere
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  • Appointments Required
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Ben - Author

 

Author: Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)

Date Published: 27th March 2018

Last Updated: 1st May 2019

Regularly monitored and updated.