Finding a Contractor mortgage can be difficult and has to be approached carefully. Due to the shortage of lenders available in this market, getting the application right the first time is very important. Having the experience of a specialist credit mortgage broker will greatly enhance your chances of success.

I’ve helped many people – with both good and bad credit – to buy their first property with a contractor mortgage. For a free no obligation chat, get in touch today.

Steven Neale – Specialist Bad Credit Mortgage Broker

Our experience as first time buyers was simply exceptional! We have been guided through the mortgage process and buying our first home has been an easy journey thanks to your professionalism and efficiency.

Esrskine&Machaj
13th Jan 2022

After thinking I was going to lose the new home I had fallen in love with, Steven worked hard with me and understood my circumstances. I was at the point of nearly giving up and within 4 weeks I had a full mortgage offer. Thank you for making my dreams come true. I would highly recommend your services. Absolutely no bull or jargon.

T Jones
10th Jan 2022

The service we have received has been amazing. We were kept up to date every step of the way. Honestly, the relief on my face when I received your email with the mortgage offer was priceless. I can not thank you both enough you are both amazing at what you do. We can not thank you enough for everything, Thank you so much, you have made our dreams a reality.

Foster
4th Nov 2021

Thank you foremost for choosing to specialise in adverse credit services for people. All we read online is that it is not possible or easy to get any form of credit when you have or settle an IVA and I’m so glad I kept looking and found you. You have helped us more than you’ll ever realise. We are so happy to have a chance to start again and be able to remain on the property ladder, all thanks to you.

Daw
1st Nov 2021

I would highly recommend Steve and Sue. Getting a mortgage seemed to be difficult for me at first when speaking to another advisor, I very nearly gave up due to the lack of effort and communication. Once we got in touch with Steve everything fell into place. Both Steve and Sue were very professional and informative throughout the process.

Thomas
27th Jan 2022

Steven & Sue have been absolutely amazing through the whole process – extremely calm, organised and helpful. We will definitely be using them in the future and would highly recommend them to family & friends.

Harden
20th Sept 2021

Steve and Sue have been absolutely amazing. I was really worried about my financial history meaning I wouldn’t be able to get a mortgage but they were nothing but supportive and non-judgemental, always available to explain things and answer questions as well as extremely efficient.

Mulready
18th Jan 2022

The professionalism of Steve and Sue is second to none. We were advised of our options and guided through the application process every step of the way. The big thing for us was the personal touch and relationship we built. My wife and I both agreed it felt like Steve and Sue are so motivated because they actually want to help. Probably the best professional service I have ever used so if you find yourself in need of a specialist mortgage broker look no further. Great service great people.

Hayward
28th March 2022

Struggling to ‘get back’ on the housing ladder after 15 years and being ‘self-employed’ was proving near enough impossible, until we found Steve & Sue. They found us a lender that would use my ‘day-rate’ rather than the usual ‘self-assessment’ and even though there was stumbling blocks along the way, they get us over the line with a ‘mortgage offer’! We can’t thank them enough and would definitely have no hesitation in using them again!

Day
28th July 2021

A fantastic service provided by SN Mortgages once again. Highly recommend SN Mortgages, they have been brilliant at finding the best rates for us, keeping in regular communication and quite frankly achieving the impossible! Where other brokers fail to come back to us or could not find a deal, SN would always go the extra mile and revert back. Thank you so much!

Patel
22nd July 2021

We are so grateful to Sue and Steve for all their effort in helping us get our mortgage. Their knowledge and clear love of their job shines through and they have been on hand to answer all our questions no matter how silly or small. They have clearly explained everything from start to finish which has made us feel so much more at ease throughout the whole process. We can’t recommend them enough!

Young
1st July 2021

Contractor mortgages

Can you get a Contractor Mortgage with Bad Credit?

Getting a mortgage as a contractor, even if you have a good credit rating, can sometimes be a tricky task. Add on top a history of credit issues, whether big or small, and things can become much more difficult. Fortunately, I work with a range of lenders who can help contractors to get a mortgage with bad credit, and I can help you find the best deal available.

Contractor mortgages based on day rate earnings

I know what you are looking for in a Contractor mortgage, and that is a lender that will lend to you based on your day rate – not Accounts, SA302’s, Tax Overviews or Tax Computations – just your day rate. For example;

  • £500 per day x 5 days of the week x 46 weeks in a year = £115,000 pa.

That is the figure a lender would assess you on for a mortgage not your Net Profit if you were Self Employed or Drawings & Dividends if you were a Limited Company.

Lending criteria for contractors with bad credit

Listed below are criteria that some lenders will use when assessing you for a mortgage.

  • Income calculated on current weekly contract – typically this would be 46 weeks but some will lend based on 48 weeks income.
  • Only 12 months contracting history is required but this could be less if you are starting out as a Contractor but have been in the same line of work for a few years. For example, if you were employed as a Programme Manager for a few years but now started out on your own contracting as a Programme Manager, lenders take comfort that you are working in the same line of work. If you were on your second 6 month contract and had a reasonable deposit, you would stand a much better chance of getting a mortgage than someone who had only just started Programming having come from a background of Car Sales for example.
  • Any profession
  • No minimum income

Can you get a Contractor mortgage with a default?

Yes, I can match you with lenders who will accept applications from contractors with defaults. I will need to understand the details of the defaults, such as when they were registered, the reasons and amounts for them, and their current status. I work with several lenders who will provide a contractor mortgage to people with defaults.

Can you get a Contractor mortgage with a CCJ?

A CCJ is a more serious credit issue, however there are lenders who will consider applications from contractors with several CCJs registered, providing they can prove their income as a contractor. 

Can I get a Contractor Mortgage with an IVA?

Yes, it’s possible to get a contractor mortgage having had an IVA, whether it is cleared or not. I work with a few lenders who are able to offer contractor mortgages to those who have had an IVA, who will consider when the IVA was registered and what the circumstances were around it. 

Refused a mortgage as a contractor?

I can help you because I am a contractor mortgage broker, helping clients who have CCJs or Defaults or any manner of adverse history on their credit file. I specialise in helping those who’ve had an application declined.

If your Contractor Mortgage was refused, that doesn’t mean you won’t be successful next time

Many lenders want to see a regular pay slip before they sign off on a mortgage. Contractors can fall through the gaps, because even though you’re invoicing more than enough to pay your mortgage and meet their requirements, your fluctuating income is seen as a risk.

The standard criteria lenders apply just doesn’t work for contractors, and that means you can find your applications refused regardless of the amount of money in your bank account. This way of thinking is becoming outdated with a workforce that’s becoming more and more reliant on the hard work of contractors – and it’s a way of thinking that I’ll challenge by securing your Contractor Mortgage.

Mortgage lenders for contractors

I know which lenders accept Contractor Mortgage applications having built up a list of lenders and I’ll make sure your application isn’t rejected because they are looking for accounts or SA302’s. The lenders I talk to will lend based on your weekly contract amount times the number of weeks you work in a year. Provided you have had a contract or two under your belt, I have lenders who will lend to you and if you have a poor credit history.

In my nearly three decades as a Mortgage Broker, I’ve learned the root cause for mortgages being rejected. And it’s very simple.

Lenders don’t like to take risks.

As a contractor, you represent an increased risk to lenders because once a contract comes to an end, you may not get a new one. As a contractor mortgage broker, I’ll do everything I can to minimise the risk you pose to lenders and negotiate a successful mortgage application on your behalf.

But there are steps you can take to ensure you’re successful when you apply.

Contractor mortgages – how to improve your chance of success

Approach a Specialist Broker like me!

If you’re reading my website, you’re a phone call away from increasing your chances of success. I understand the way contractors are paid and what paperwork lenders are looking for when applying for a mortgage. I can help you to secure a mortgage based on your contract rate even if you’ve been declined in the past.

Manage Your Finances

This almost goes without saying, but your finances need to be in order. Contracting can be lucrative, but your financial records need to demonstrate this. By this I mean your business bank statements cross reference with weekly contract invoices, your personal bank statements do not show bounced DDM’s or returned cheques. If you have a positive credit rating and your finances are in order, you will be in a stronger position when it comes to finding you a mortgage.

Have a deposit

Unsurprisingly, large deposits help a successful application. The higher your deposit, the lower the loan to value ratio will be and the fewer hoops you’ll be forced to jump through. If you’re managing your finances well, you should be able to put money aside to increase your chances of a successful application

Check My File – free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three credit reference agencies that lenders use – Equifax, Experian & TransUnion – so it is a good place to start to get an overview of your credit history. It may be that once I have identified a lender, we get copies of your credit file directly from the agency the lender uses to make absolutely sure your credit history is OK for that particular lender.

How a specialist broker can help with your Contractor Mortgage

Even if your application has been declined or refused in the past, give me a call as I know this market and may have lenders you may not have approached for a mortgage.

Owning your own home doesn’t mean finding a different career path to follow. Call me, Steven Neale, now on 01494 526 400 to discuss your contractor mortgage.

3 REASONS TO ASK ME TO ARRANGE YOUR MORTGAGE

Years of Experience

I specialise in Bad Credit Mortgages for people who have a poor credit history because of any number of reasons.

Choice of Lenders

I am a Whole of Market, Mortgage Broker meaning I can talk to every lender to see about finding you the right mortgage.

Saving You Money

As a specialist Mortgage Broker for over 30 years I have a great deal of experience that will help save you time & money.