If your fixed rate is ending, your circumstances have changed, or you want to check if a better deal is available, a remortgage review can be highly beneficial. For contractors, it’s also a chance to find lenders that may assess your income more favourably than when your original mortgage was arranged.
The contractor mortgage market has evolved significantly in recent years, with more lenders accepting day rate income and new specialist lenders entering the market. If your mortgage was arranged more than two or three years ago, a better option may now be available.
A product transfer means moving to a new rate with your existing lender without going through a full affordability assessment. This can be quicker and simpler than a full remortgage and avoids the need to resubmit income documentation. For some contractors, particularly those whose income structure has become more complex since the original mortgage, a product transfer removes the risk of the current lender reassessing under tighter criteria.
A full remortgage moving to a new lender typically produces better rates and terms because you are accessing the whole market rather than just your existing lender’s product range. It also allows you to borrow more if your day rate has increased or your equity has grown. We compare both options honestly and recommend the one that produces the best overall outcome.
There are several reasons why contractors choose to review their mortgage arrangements. The most common triggers include
If your day rate has increased since your original mortgage was arranged, a remortgage review is particularly worthwhile. A higher day rate means a higher annualised income, which may allow you to borrow more, access lower LTV bands, or qualify for lenders with better rates that were previously out of reach.
Conversely, if your day rate has decreased or you have had a gap in contracting, a product transfer with your existing lender may be preferable to a full remortgage, avoiding a new affordability assessment against a lower income figure.
The main costs associated with remortgaging are early repayment charges if you are still within your initial period, arrangement fees on the new product, valuation costs, and legal fees. Many lenders offer fee-free remortgage products for straightforward cases, and some offer cashback that covers the cost of switching. We factor all costs into our comparison and present the total cost of each option over your chosen term.
Our broker fee of £495 is payable only on completion of a successful remortgage. We do not charge for an initial review or for providing a recommendation that you choose not to act on.
Yes though the right approach depends on how your income has changed. If your day rate has increased, a full remortgage may unlock better options. If your income has reduced, a product transfer with your existing lender may be preferable. We assess your current position and recommend the approach that gives you the best outcome.
Yes though the right approach depends on how your income has changed. If your day rate has increased, a full remortgage may unlock better options. If your income has reduced, a product transfer with your existing lender may be preferable. We assess your current position and recommend the approach that gives you the best outcome.
Yes a capital release remortgage allows you to borrow against the equity in your property. The maximum you can release depends on the current value, your outstanding balance and the lender's maximum LTV. For contractors, day rate assessment ensures your borrowing capacity reflects your current earnings.
For a full remortgage with a new lender, yes the new lender will need to verify your income. This typically means your current contract, recent bank statements and a brief work history. For a product transfer with your existing lender, income documentation is usually not required.
Your mortgage will revert to the lender's standard variable rate, which is typically higher than the rate you have been paying. You can still remortgage at any point, but starting early avoids this outcome.