Contractor mortgage declined by high street banks? Our specialist mortgage brokers have 20+ years of experience helping UK contractors who’ve been declined elsewhere. We access specialist contractor mortgage lenders unavailable to the public.
High street banks don’t understand contractor income. They see “self-employed” and apply employed salary criteria, leading to automatic declines.
Many lenders try to assess contractors using accounts, dividends, or umbrella payslips instead of contract-based underwriting, drastically underestimating income.
Non-specialist brokers approach wrong lenders or package applications incorrectly, burning opportunities with lenders who would otherwise approve.
The best contractor lenders only work through specialist brokers. High street applications miss these entirely.
Problem: Lender assessed salary + dividends instead of day rate Example: £15k salary + £25k dividends = £40k assessed vs £500/day = £115k actual Solution: Contract-based underwriting with specialist lender Result: Often 3x+ borrowing capacity increase
Problem: Lender treated contracting as unemployment gaps Example: Contract gaps viewed as "unemployment periods" Solution: Specialist lenders who expect and understand contractor work patterns Result: Same circumstances approved with gap-friendly lenders
Problem: Lender wanted 2-3 years of company accounts Example: New contractor or recently incorporated company Solution: Contract-based underwriting from day one with relevant previous employment Result: Immediate approval based on contract rate and background
Problem: Lender couldn't understand limited company/umbrella arrangements Example: Director loans, dividend planning, IR35 complications Solution: Specialist lenders who ignore structure complexity and focus on day rate Result: Streamlined approval using contract-based assessment
Client: Tom, Java Developer, £750/day
Previous Declines: HSBC, Barclays, Santander (assessed salary + dividends = £35k)
Decline Reason: “Insufficient income for mortgage amount”
Our Solution: Halifax contract-based underwriting
Day Rate Assessment: £750 × 5 × 48 = £180,000 annual income
Result: £675,000 mortgage approved in 1 week
Client: Sarah, Project Manager, £600/day
Previous Decline: Nationwide branch (assessed as “unemployed between contracts”)
Gap History: 6-week gap for holiday, 4-week gap between projects
Our Solution: Nationwide specialist underwriting team
Assessment: Same lender, different team that understood contractor patterns
Result: £540,000 mortgage approved with the same institution that declined the direct application
Client: Mark, DevOps Engineer, £850/day
Previous Decline: Virgin Money (“insufficient trading history”)
Situation: Recently incorporated company, no filed accounts
Our Solution: Leeds Building Society manual underwriting
Assessment: Current contract rate + 4 years of previous IT employment
Result: £765,000 mortgage approved from day one of company’s operation
Client: Lisa, Business Analyst, £550/day
Previous Decline: Halifax branch (“too complex to assess”)
Structure: Limited company, director loans, dividend planning
Our Solution: Halifax specialist team via the broker route
Assessment: Pure day rate calculation, structure complexity ignored
Result: £495,000 mortgage with the same lender that declined the direct application
Specialist lenders use contract-based underwriting, while high street lenders use employed salary criteria - completely different calculations.
Specialist lenders designed their criteria around contractors, while mainstream lenders treat contractors as problematic employed borrowers.
Specialist underwriting teams are only accessible through brokers - direct applications often hit the wrong departments.
Manual underwriting considers your specific contractor circumstances rather than automated systems designed for employed applicants.
Getting the right mortgage in Watford’s competitive property market requires local expertise and whole-market access. Our independent Watford mortgage broker services ensure you secure the best possible mortgage terms for your circumstances.
Ready to start your Watford mortgage journey? Contact our expert mortgage advisors today for a free, no-obligation consultation and discover how much you could borrow for your Watford property purchase.
We review your previous applications to understand exactly why they were declined and identify resolution strategies.
Access specialist lenders who actively want contractor business and understand your specific situation.
Present your case using a contract-based underwriting methodology that specialist lenders expect and prefer.
Bypass high street confusion and access specialist underwriting teams directly through broker channels.
Often achieve approval within 1 week using the correct lender and assessment method.
Ans: Multiple mortgage applications can impact credit scores, but we can often achieve approval without further credit searches using existing information.
Ans: Yes, often the same lender will approve through the specialist broker route using contract-based underwriting teams.
Ans: This usually means the wrong assessment method. Contract-based underwriting often shows 2-3x higher income than traditional assessment.
Ans: No waiting period needed if approaching specialist lenders with the correct contract-based assessment methodology.
Ans: Non-specialist brokers often lack access to contract-based underwriting lenders or use the wrong application methods.
Ans: While we can’t guarantee approval, our specialist access and expertise resolve the majority of contractor decline cases.
