If you’re a contractor who’s been turned down for a mortgage, you’re certainly not alone. Many contractors experience difficulties with mainstream lenders, but this doesn’t reflect the quality of contractors as borrowers.
The reality is that most high street banks and building societies operate on traditional employment models. They’re designed for employees with fixed salaries, not the modern contractor workforce that powers significant parts of the UK economy.
Traditional lenders often request employment documentation that contractors don’t have: three years of accounts, standard payslips, and employment contracts. They’re applying employment-based criteria to contractor situations.
Quod possimus mollit wisi repellat ad dolores itaque occaecati interdum, fusceurna! Quo, condi mentum.
Quod possimus mollit wisi repellat ad dolores itaque occaecati interdum, fusceurna! Quo, condi mentum.
Tailored mortgage solutions crafted exclusively for contractors.
We work with lenders who understand contractor income patterns, considering day rates, contract terms, and professional positioning rather than trying to fit contractors into employment-based models.
We work with lenders who have experience assessing contractor applications. These are mainstream institutions with dedicated contractor underwriting teams.
We help present your contractor income in ways that specialist lenders can assess properly, avoiding the documentation challenges that cause problems with traditional banks.
From application to completion, we provide guidance throughout your mortgage journey with specialists who understand contractor employment.
Since 2019, we've helped over 1,000 contractors secure mortgages by using specialist lenders who understand contractor income. Our clients often achieve better outcomes than their initial bank quotes, and many secure mortgages after being rejected elsewhere.
Sarah, IT Contractor – From Rejection to Approval
Challenge: Sarah, a senior IT contractor earning £650 per day, was rejected by four high street lenders despite having £45,000 deposit and excellent credit.
Our Solution: We identified that lenders were incorrectly calculating her income based on net after-tax figures rather than her gross contract value, significantly underestimating her earning capacity. Using our specialist lender network, we presented her application to a contractor-friendly lender with proper income assessment.
Result: Sarah secured a 90% LTV mortgage at competitive rates. She’s now living in her £485,000 home in Manchester with better terms than originally quoted.
Mark, Construction Project Manager – Overcoming IR35 Complications
Challenge: Mark’s income had shifted due to IR35 changes, making his financial picture complex for traditional lenders. Two brokers had already given up on his case.
Our Solution: We used a specialist contractor underwriting that assesses James based on his current contract values, rather than trying to make traditional lenders understand his complex structure. This contractor-focused approach treats his arrangements as normal business practice.
Result: Mark obtained a mortgage for his family home in Surrey. The specialist lender understood his IR35-compliant arrangements and offered competitive terms.
Emma, Marketing Consultant – New Contractor Success
Challenge: Emma had been contracting for 18 months after leaving permanent employment. Traditional lenders wanted three years of self-employed accounts that she couldn’t provide.
Our Solution: We used specialist lenders who assess current earning capacity rather than historical time periods. Emma’s £450 daily rate and strong contract pipeline were more important than arbitrary time requirements.
Result: Emma secured her first home purchase with a competitive mortgage. Her London flat purchase was completed efficiently through specialist underwriting.
Don’t let mainstream lender rejections discourage you. At Mortgage Knight, we specialise in contractor mortgages and work with lenders who understand contractor income.
Get your free contractor mortgage consultation today. Our specialists will review your situation and provide clear guidance on your options – usually within 24 hours. No obligations, no fees for the initial consultation.
Â
Ans: Contractors working with specialist lenders often receive decisions more quickly than through traditional banks. Our clients typically receive responses within 2-4 weeks of application. The key is having appropriate documentation prepared and applying to lenders who understand contractor income structures.
Ans: Many specialist lenders are more flexible than traditional banks. Some will consider contractors with 12-18 months of contracting history, particularly if you have strong employment background or current contracts. Requirements vary by lender and individual circumstances.
Ans: IR35 status can affect applications, but specialist lenders understand the legislation and how it impacts contractor income. We work with lenders who have experience assessing both inside and outside IR35 contractors, ensuring your situation is assessed appropriately.
Ans: Contractors can often access similar deposit requirements to employed borrowers. Many specialist lenders offer 90% LTV mortgages (10% deposit) for contractors with strong income profiles. Requirements depend on income strength, credit profile, and individual circumstances.
Ans: Not necessarily. Specialist contractor lenders often offer competitive rates because they understand contractor income properly and can assess risk accurately. Many contractors secure rates competitive with standard residential mortgages.
Ans: Yes, contractors have access to government schemes. We’ve helped contractors access various schemes including Help to Buy equity loans and shared ownership. The key is applying through lenders who participate in these schemes and understand contractor income assessment.
