Mortgages for Contractors: A Comprehensive Guide

Contractors working as freelancers or self-employed individuals face unique challenges when it comes to securing a mortgage. Traditional lenders often have strict requirements that do not apply to those who work in the gig economy. However, there are options available that cater specifically to contractors. In this article, we will explore the various types of mortgages for contractors and provide tips on how to navigate the process mortgages for contractors .

The Challenges Contractors Face

One of the biggest challenges that contractors face when applying for a mortgage is proving their income. Freelancers and self-employed individuals often have irregular income streams, making it difficult to provide lenders with the standard documentation required. Additionally, contractors may have a shorter employment history than traditional employees, which can be seen as a risk factor by lenders.

Types of Mortgages for Contractors

Fortunately, there are several types of mortgages available for contractors. These include:

Self-Employed Mortgages

Self-employed mortgages are designed for individuals who work for themselves. These mortgages take into account the unique challenges faced by self-employed individuals, such as irregular income streams. Lenders may require additional documentation, such as tax returns or bank statements, to verify income.

Contractor Mortgages

Contractor mortgages are specifically designed for contractors who work on short-term contracts. These mortgages take into account the fact that contractors may have gaps in their employment history and may have irregular income streams. Lenders may require proof of future contracts to ensure a steady income.

Freelancer Mortgages

Freelancer mortgages are similar to self-employed mortgages and are designed for individuals who work as freelancers. These mortgages take into account the irregular income streams that freelancers often have and may require additional documentation to verify income.

Tips for Securing a Mortgage as a Contractor

If you are a contractor looking to secure a mortgage, there are several tips you can follow to make the process smoother:

Keep Accurate Records

It is crucial to keep accurate records of your income and expenses. This will help you when it comes time to provide documentation to lenders. Consider hiring an accountant or using accounting software to track your finances.

Plan Ahead

If you know you will be applying for a mortgage in the future, start planning ahead. Lenders may require several years of tax returns or bank statements, so make sure you have this documentation ready.

Improve Your Credit Score

A good credit score can go a long way in securing a mortgage. Pay your bills on time, keep credit card balances low, and avoid opening new lines of credit before applying for a mortgage.

Consider a Specialist Lender

Specialist lenders cater specifically to contractors and may have more lenient requirements than traditional lenders. Consider working with a specialist lender to increase your chances of securing a mortgage.


Securing a mortgage as a contractor can be challenging, but it is not impossible. By understanding the types of mortgages available and following the tips outlined in this article, you can increase your chances of success. Remember to keep accurate records, plan ahead, and consider working with a specialist lender. With persistence and patience, you can achieve your goal of owning a home.