If you’re a contractor thinking about getting a mortgage via Barclays, you’re in luck — Barclays has policies that can work well for contractors when done correctly. That said, success depends on understanding their criteria: how they assess your income, what documentation they need, and how you present your case. Mortgage Knight helps you navigate that so you get approval smoothly and access competitive high-street rates.
come basis & calculation: Barclays may assess your contractor income using your day rate or contract value. They typically annualise it over a working schedule (e.g. × 46 weeks) rather than assuming 52 weeks.
Contract term & remaining duration: They’ll want to see that your current contract has sufficient remaining term — usually at least 6 months — or that it’s likely to renew.
Employment structure: Both limited company and umbrella contractors may be accepted. The way you’re paid, how deductions work, etc., will matter.
Experience & consistency:Â Contractors who can demonstrate steady contracting (renewals or stable work history) tend to have stronger cases. Gaps may be acceptable if explained and supported by prior contracts.
Credit profile:Â Clean credit history helps. Issues like recent defaults or severe adverse credit can complicate things.
Loan-to-value (LTV): The lower your LTV (larger deposit), the better. Barclays’ maximum LTV for contractor applicants depends on profile, income, type of property etc.
To improve your chances with Barclays:
Profile: Limited company contractor, 9 months on current contract, day rate £350/day
Challenge: No 2 years’ accounts; contract renewals not yet proven
Solution: Mortgage Knight aggregated current contract, CV, bank statements, and worked with Barclays to accept 9 months + projected renewal
Outcome:Approved at ~80% LTV, competitive fixed-rate deal
Profile:Umbrella contractor in healthcare, wanting to move from renting to buying with Barclays
Challenge: Umbrella deductions; needed income verification and proof of stability
Solution:We provided last 3 months of payslips, bank statements, plus contract history. Packaged to show consistent income despite umbrella costs.
Outcome: Successful Barclays contractor mortgage, deposit ~20%, fixed product secured
Profile: Contractor with existing buy-to-let property, wants a residential mortgage on new home purchase
Challenge: Previous property rental income vs contractor income; mixed income sources
Solution: We separated rental income, showed contractor income via contracts & bank statements, demonstrated affordability including both incomes under Barclays’ stress testing
Outcome: Approval achieved at Barclays for residential mortgage with strong terms
We know Barclays’ criteria intimately and can package your application correctly
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We help identify most favourable products (fixed, tracker) given your situation
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We aim to get soft AIP where possible to minimise impact on your credit file
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Full support through valuation, legal, completion; clear communication so you avoid delays
Sometimes — if your current contract has strong remaining term (6+ months) and you can demonstrate renewals or previous contracting in the same field, Barclays may accept. But more experience = less risk, so stronger application.
Usually day rate × number of working weeks (often about 46) to annualise, then considering deductions or expenses. If you’re umbrella or limited company contractor, they’ll deduct costs accordingly.
Not always, but having a larger deposit (lowering the LTV) improves your chances, gets you better rates, and may reduce scrutiny of income assumptions.
Gaps don’t automatically disqualify you, especially if you can show stable contracting work before and after. Renewals or evidences that your work is likely to continue help a lot.
Yes — combining incomes (rental, contractor, etc.) can help affordability, but Barclays will stress test your total outgoings, loan payments, and take into account possible voids or downturns in one income stream.
Let Mortgage Knight guide you: we’ll assess your borrower profile, package your documentation, and identify the strongest Barclays product for you.
