Recently started your contracting career and need a mortgage? Don’t assume you need to wait. Our specialist lenders offer contract-based underwriting from your very first contract if you have relevant previous employment experience.
Many new contractors believe they must establish a contracting track record before applying for mortgages. This isn’t true with specialist lenders who understand contractor income.
New contractors worry about not having filed company accounts or an extensive contracting history. Contract-based underwriting bypasses this entirely.
Specialist mortgage lenders designed their criteria specifically for contractors, including those who just started contracting.
Some new contractors delay applications, hoping for rate increases. Current contract rates can be assessed immediately by specialist lenders.
Specialist lenders treat relevant previous employment as a continuous career history. Moving from an employed Java developer to a contract Java developer shows career continuity, not employment gap.
Your current day rate demonstrates earning capacity regardless of contracting duration. Week one contractor with £600/day rate has the same assessment as year two contractor with same rate.
New contractors need a current contract plus employment history - no complex account analysis or extensive contracting documentation required.
New contractor applications often process quickly because there's less complex financial history to analyse.
Situation: 2-4 weeks into first contracting role
Background: Several years employed in a similar position
Assessment: Current contract rate plus employment history
Outcome: Immediate mortgage eligibility with specialist lenders
Situation: Just made redundant, started contracting immediately
Background: Long employment history in the same field
Assessment: Career continuity recognised, contract rate assessed
Advantage: Often higher borrowing capacity than previous employment
Situation: Recently incorporated to start contracting
Background: Previous contracting through umbrella or other arrangements
Assessment: Contracting continuity, new structure accommodation
Focus: Contract earning capacity, not company age
Situation: Senior professional moved to contracting
Background: Management or specialist role, now contracting
Assessment: Professional background supports contract rate credibility
Benefit: High day rates are often justified by an extensive background
Client: Mark, Senior Developer
Timeline: Applied 1 week after starting the first contract
Background: 5 years employed at a software company, made redundant
New Contract: £650/day (significant increase from £48,000 salary)
Halifax Result: £585,000 borrowing approved immediately
Previous vs New: £216,000 employment borrowing vs £585,000 contractor
Client: Sarah, Business Analyst
Timeline: 1 month after incorporating a limited company
Background: 4 years employed analyst, moved to contracting for flexibility
Contract Rate: £550/day through the new company
Nationwide Assessment: Career continuity and professional background are recognised
Result: £495,000 borrowing capacity based on contract rate
Client: Tom, Project Manager
Timeline: 6 weeks into contracting
Background: 8 years employed PM, redundancy led to contracting
Day Rate: £600/day (higher than previous £45,000 salary)
Leeds BS Outcome: £540,000 borrowing vs £202,500 as employee
Speed: Mortgage offer within 10 days of application
Criteria: Accept contractors from day one with a relevant background Assessment: Current contract rate with employment history support Advantage: Market-leading new contractor acceptance Process: Streamlined application for employment-to-contracting transitions
Approach: Manual underwriting considers the career transition context Assessment: Individual evaluation of professional background Benefit: Understanding of employment-to-contracting moves Flexibility: Accommodates various career transition scenarios
Method: Manual underwriting for each new contractor case Understanding: Recognises career progression represented by contracting Products: Full mortgage range available immediately Innovation: Flexible approach to new contractor circumstances
Focus: Specific criteria designed for new contractors Requirements: Relevant previous experience in a similar role Assessment: Immediate contract earning capacity evaluation Innovation: Products created specifically for new contractor needs
Being new to contracting doesn’t mean delaying your property plans. Specialist lenders can assess your mortgage application immediately using your current contract rate and employment background.
Many new contractors unnecessarily wait months before applying, missing property opportunities and potentially facing price increases while they delay.
Your contract rate demonstrates your current earning capacity – specialist lenders can recognise this value from day one of your contracting career.
Review your employment-to-contracting transition and gather supporting documentation.
Identify specialist lenders with the best new contractor criteria for your situation.
Compile employment history and contractor evidence for optimal presentation.
Submit to lenders who understand and welcome new contractor applications.
New contractor applications often process faster due to straightforward assessment criteria.
Ans: Immediately, if you have relevant previous employment experience. Many lenders approve from day one.
Ans: No, specialist lenders focus on your contract rate and background, not contracting duration.
Ans: No, new contractors use contract-based underwriting, which doesn’t require historic company accounts.
Ans: Usually significantly more. Contract rates typically provide much higher borrowing capacity than employment salaries.
Ans: Not problematic with relevant background. Specialist lenders understand contracting patterns and short initial contracts.
Ans: No, new contractors access the same competitive rates as established contractors.
