Numerous high-street banks, building societies, and other financial institutions claim to cater to contractors seeking mortgages. However, the actual scenario is often more nuanced. Let’s delve into:

Understanding the Lender Search for Contractor Mortgages When hunting for a contractor mortgage broker, it’s crucial to scrutinise the details. Rates displayed on comparison websites, for instance, may not specifically cater to contractors. These listings might include mortgages accessible to contractors, but this doesn’t guarantee competitive rates or advantageous deals. Some listed options might not even be available to contractors.

Identifying Genuine Contractor Mortgage Providers Fortunately, there are ample choices for contractors, including those with poor credit, in need of a mortgage. The key is to engage a reputable mortgage broker familiar with the contractor market, who can adeptly tailor your application for optimal acceptance chances.

It’s vital to know which lenders truly offer contractor mortgages, particularly those who can assess your application based on your unique contract terms. This aspect is critical, as it allows you to secure a competitive mortgage by leveraging your specific circumstances.

Mortgages for Contractors, see who offers them

• Accord: Offers mortgages to contractors with at least 12 months remaining on their current contract. Those with less than this require evidence of two years of contracting income. Day-rate lending is also an option.
• Bank of Ireland: Accepts contractors with a minimum contract value of £50,000 and at least 12 months of contracting experience, with some remaining contract duration.
• Bluestone: Welcomes self-employed individuals with just the previous year’s accounts and no requirement for over a year’s trading history. Contractors can have up to six-month earnings gaps, provided they have at least two years of contracting experience. Adverse credit considered, albeit with higher rates.
• Clydesdale: Accepts applications from day and hourly-rate contractors with a minimum two-year trading history, contracting through their own limited company or a payroll umbrella.
• Halifax: Known for its flexible lending policy, Halifax caters to self-employed, freelancers, and contractors, including day 1 contractors, on a day or hourly rate basis.
• HSBC: Requires at least two years of accounts for applications from limited company operators and self-employed individuals, including contractors.
• Kensington: Considers day-rate contractors, either via a limited company or an umbrella, and is recognised for lending to those with less-than-perfect credit histories, overlooking defaults and CCJs older than 2 years.
• Kent Reliance Building Society: Ideal for day-rate contractors charging a minimum of £275, suitable for limited company or payroll umbrella contractors.
• Leeds Building Society: Grants mortgages up to 85% LTV to both day and hourly-rate contractors.
• Metro Bank: Assesses mortgages based on a day rate over 46 weeks for self-employed or umbrella company contractors, with no minimum day rate and accommodating multiple contracts.
• Nationwide: Lends to contractors based on their day or hourly rates without a minimum income threshold.
• NatWest: Considers hourly and day-rate contractors operating through their own limited company, based on gross contract value.
• Pepper Money: Offers contractor mortgages to various contractor types, calculating terms based on a day rate value with a 12-month average. Adverse credit considered.
• Post Office: Provides up to 90% LTV mortgages to contractors with at least 12 months’ experience and a minimum gross contracting salary of £50,000, assessing current and past year contracts.
• Scottish Widows: Favours day-rate and hourly-rate contractors, with a preference for IT contractors.
• Skipton: Accepts applications from day-rate and hourly-rate contractors with two years in their field and at least 12 months of contract history.
• Virgin Money: Welcomes applications from day or hourly-rate contractors operating through their own limited company, excluding umbrella company contractors.

While some lenders are more contractor-friendly, high-street banks like Barclays and Santander may offer contractor mortgages but are often challenging to secure without specialist broker assistance. For further information on contractor mortgage providers, feel free to contact us – we’re here to assist.