Contractor mortgage Advice
Getting a mortgage as a contractor can feel unnecessarily complicated. Many lenders treat contractors as if they are unemployed between contracts, assess only part of their income, or simply decline applications that don't fit a standard employed template. The reality is that contractors are often high earners with stable, in-demand skills and the right lender will recognise that.
At Aspect Mortgages, we work with contractors every day. Whether you work on a day rate, under a fixed-term contract, through an umbrella company, or in the construction industry under CIS, we know which lenders assess contractor income properly and how to present your application to get the best possible outcome. Working as a contractor and not sure where to start with a mortgage? Call us on 01257 812345 or enquire below. We'll give you a straight answer about what's available for your situation.
We do this every day - We work with day rate contractors, CIS workers and fixed-term workers.
Over 20 years of experience presenting complex incomes to lenders.
One adviser, start to finish You'll deal with the same adviser throughout your entire journey. They'll know your case inside out and be on hand whenever you need them.
Everything in one place, securely Our secure client portal lets you share documents, view your credit file, and follow your case progress at any time - from any device. It's a simpler, faster way to keep things moving.
Independent advice - we're not tied to any lender or panel.
No increased fees - we won't punish you with a higher fee for being a contractor, our standard £495 fee still applies.
How lenders assess income - day rate contractors
The most favourable approach for day rate contractors is annualisation, where the lender takes your daily rate, multiplies it by the number of days you work per year (typically 48 weeks x 5 days = 240 days), and uses the resulting figure as your income. This often produces a much higher income figure than tax returns or accounts would show, and can significantly increase what you are able to borrow. Not all lenders use this method, but the ones that do are often the most competitive for contractor applicants.
Most lenders prefer to see at least 12 months of contracting history, though some will consider less where the overall picture is strong.
If you are newly contracting, options are more limited but they do exist - particularly if you have a strong employment background in the same industry. We will tell you honestly what is realistic at your stage and what you can do to strengthen your position if needed.
What Documents Will You Need?
For day rate contracts, you'll typically need:
A current contract with a reasonable amount of time remaining
A CV or work history showing contracting background
3 months of business (if applicable) and personal bank statements
Proof of ID and address
We'll go through exactly what's needed for your specific application before you start, so there are no surprises and you can gather everything in one go.
How lenders assess income - fixed-term contract workers
Lenders vary on how they treat fixed-term contracts. Some require a history of renewals to demonstrate continuity; others will accept a current contract with time remaining. We will identify which lenders are most flexible for your contract type.
What Documents Will You Need?
For day rate contracts, you'll typically need:
A current contract with a reasonable amount of time remaining
Recent payslips (typically the last 3 months)
3 months of personal bank statements
Proof of ID and address
We'll go through exactly what's needed for your specific application before you start, so there are no surprises and you can gather everything in one go.
How lenders assess income - CIS workers
Construction Industry Scheme workers are assessed differently again. Some lenders will look at your gross CIS income from your tax returns or payment statements. Others will treat you as self-employed and require accounts. We know which lenders are most CIS-friendly and will identify the most suitable approach for your circumstances.
What Documents Will You Need?
For CIS workers, you'll typically need:
CIS payment statements
3 to 6 months of personal bank statements
Proof of ID and address
We'll go through exactly what's needed for your specific application before you start, so there are no surprises and you can gather everything in one go.
Contracting history
How Long Do You Need to Have Been Contracting?
Most lenders prefer to see at least 12 months of contracting history, though some will consider less where the overall picture is strong.
Key factors that help include:
• A current contract with a reasonable amount of time remaining
• A history of contract renewals with the same or similar clients
• A consistent day rate over time, or a rate that has increased
• Previous employment in the same field before moving into contracting If you are newly contracting, options are more limited but they do exist — particularly if you have a strong employment background in the same industry.
We will tell you honestly what is realistic at your stage and what you can do to strengthen your position if needed.
Common concerns
1. "My day rate is good but my tax returns show a low income - will that be a problem?"
With the right lender, no. Many specialist lenders will annualise your day rate rather than relying on your tax return, which often produces a much higher income figure. The key is knowing which lenders take this approach.
2. "I'm between contracts at the moment - can I still apply?"
Possibly. Some lenders will proceed if you have a signed new contract, even before it starts. Others will want you to be actively working. We will advise on the realistic options for your timing.
3. "My contract is fixed-term and has less than six months left - is that a problem?"
It can be with some lenders, but not all. Some lenders are comfortable with shorter remaining contract terms if you have a strong track record of renewals. We will find the lenders most flexible on this.
4. "I work through an umbrella company - will lenders treat me the same as employed?"
Some will, some won't. Umbrella PAYE income is accepted by many lenders but a few require longer track records. We will match you to the right lender for your arrangement.
5. "I'm a CIS worker, does that make things harder?"
It can if you go to the wrong lender. Some high street lenders struggle with CIS income structures. Specialist lenders who understand CIS will assess your gross income properly, which can make a significant difference to what you can borrow.
Why Choose Aspect Mortgages?
Independent and FCA-regulated - we work for you, not for the lender
Whole of market - access to thousands of remortgage products from across the market
Based in Chorley, serving clients nationwide - we advise clients across the UK from our Chorley base — by phone, video call, or in person
The best of technology and people - cutting-edge mortgage technology, but you'll always deal with a real person who knows your situation
No jargon - everything explained clearly, at your pace
Fixed, transparent fee - A fixed £495 fee, only payable when your mortgage offer is issued. No percentage-based charges, no surprises.
What Clients Say About Aspect Mortgages
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Frequently Asked Questions
Can I get a mortgage as a contractor?
Yes. Contractors can access the same mortgage products and rates as employed applicants. The difference is in how income is assessed and which lenders are approached. With the right broker and the right lender, being a contractor is not a barrier to getting a competitive mortgage.
How do lenders calculate income for a day rate contractor?
The most favourable method is annualisation — multiplying your daily rate by the number of working days in a year (typically 240). Some lenders use this approach and it can significantly increase your borrowing capacity compared to lenders who rely on tax returns alone.
Do I need to have been contracting for a specific length of time?
Most lenders prefer 12 months of contracting history, though some will consider less where a strong track record exists in the same industry. We will advise on what is realistic based on your situation.
Can I get a mortgage if I am between contracts?
Possibly, depending on your circumstances. Some lenders will accept a signed future contract as evidence of income. We will tell you honestly what options exist for your timing.
I work under CIS - can I get a mortgage?
Yes. CIS workers can get mortgages, though the right lender matters. Some lenders assess CIS income on gross payment statements, which is often more favourable than going through lenders who treat CIS workers as standard self-employed. We know which lenders to approach.
Will my day rate mortgage be assessed on my tax return?
Not necessarily. Specialist lenders will often annualise your day rate instead of using your tax return, which is usually the more favourable approach for higher earners. We will identify the lender whose assessment method works best for your figures.
Ready to find out what you can borrow?
Whether you are in a contract now, between contracts, or just planning ahead, we are happy to have a no-obligation conversation about your situation. We will look at your income structure and tell you honestly what is available and what we would recommend.
Simply enquire below and we'll be in touch or call us directly on 01257 812345.
Aspect Mortgages is based in Chorley, Lancashire, but we work with clients nationwide. Whether you prefer to meet us in person at our offices or speak with one of our advisers by phone or video call, we can help you wherever you are in the UK.
We have particular experience serving homeowners and buyers across Lancashire and Greater Manchester, including Preston, Chorley, Leyland, Bamber Bridge, Southport, Skelmersdale, Ormskirk, Wigan and Bolton.
We offer specialist mortgage and financial advice across a wide range of needs, including first-time buyers, home movers, remortgages, buy-to-let, product transfers, self-employed applicants, contractors, professionals, NHS workers, large loans, adverse credit and equity release.
Fees
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £495 for a residential/buy to let mortgage or £1495 for an equity release/retirement mortgage.
Important Information
Aspect Mortgages Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/s/) under FCA reference 305352. The FCA do not regulate Business Buy to Let Mortgages or Estate Planning.
As independent advisers we have access to the whole market, except for deals that you can only obtain by going direct to a lender. Registered in England and Wales No: 051013801. 16 St Thomas' Road, Chorley, PR7 1HR.
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