Common Contractor Mortgage Myths Debunked

Common Contractor Mortgage Myths Debunked

Blog Article

This is one of the biggest misconceptions. Contractors can get mortgages — even with a short trading history. Many specialist lenders now offer mortgage products designed specifically for contractors based on their day rate or contract terms, not just annual accounts.

Myth 2: You Need 3 Years of Accounts
Not always! While traditional lenders may ask for 2–3 years of accounts, contractor-friendly lenders often accept just 6 to 12 months of contracting history — especially if you have previous experience in the same industry.

Myth 3: Only High-Earning Contractors Are Eligible
You don’t need a six-figure income to qualify. Lenders assess affordability based on your contract rate, expenses, and outgoings. As long as you earn enough to cover the loan repayments, you can still get approved.

Myth 4: Changing Contracts Affects Your Chances
Frequent contract changes aren’t always a red flag — especially if you have minimal gaps between them. A stable history of work in the same field is often more important than staying with one client long-term.

Myth 5: You’ll Pay Higher Interest Rates
Contractors don’t automatically pay higher interest rates. With the right broker and lender, you can access competitive deals — sometimes the same rates offered to permanent employees.

Conclusion
Don’t let myths stop you from pursuing your dream home. With the right advice and the right lender, getting a mortgage as a contractor is not only possible — it can be straightforward.

Need expert advice? At Contractor Mortgage Solutions, we help you navigate the process, bust the myths, and secure the right mortgage for your needs.