Can First-Time Buyer Contractors Get Mortgages?

Can First-Time Buyer Contractors Get Mortgages?

Blog Article

Yes, first-time buyers who are contractors can absolutely get a mortgage—but the process can be slightly different compared to someone in permanent employment. As a contractor, it’s important to work with a lender who understands your income structure and the unique aspects of contracting.

Here’s what you need to know if you’re a contractor and a first-time buyer.

Key Considerations for Contractors
As a first-time buyer, you’ll likely have some questions about your eligibility and what the mortgage process looks like. For contractors, lenders will typically assess:

Your current contract or daily rate

Length of time you’ve been contracting

Credit score

Deposit size

The more contract history you have, the better. Many lenders prefer to see at least 6 months (but often more) of consistent contracting before they approve you.

Lenders’ Approach to Contractor Income
Instead of focusing on salary slips or self-employed tax returns, contractors often provide:

Current contract details (including length and pay rate)

Company accounts (if you’re operating through a limited company)

Bank statements showing consistent income

Many lenders calculate contractor income based on contract rate × 5 days × 46 weeks, which can result in higher borrowing potential than other self-employed individuals.

Deposit Requirements
As a first-time buyer, you’ll typically need a deposit of 5–10% of the property value. If you’re a contractor with a limited company or strong contract history, you might be able to secure a deal with a lower deposit—but it depends on the lender.

The bigger your deposit, the more options you’ll have, and the better the mortgage terms.

What Can You Do to Improve Your Chances?
Build a strong credit score—this is crucial for any mortgage.

Ensure your contract is in place for at least 6–12 months to prove stability.

Work with a specialist contractor mortgage broker who can help match you with the right lender.

If possible, consider a bigger deposit to improve your borrowing potential.

Final Thoughts
Being a first-time buyer as a contractor may present some challenges, but it’s certainly possible with the right preparation and guidance. Working with a broker who understands your needs can make the process smoother.

At Contractor Mortgage Solutions, we help first-time buyer contractors secure the mortgage they deserve.