Self-Employed & Contractor Mortgages
Self-employed and contractor mortgages have grown steadily more complex, and in recent years harder to arrange. If you are self-employed, freelance or contracting, your income can vary from year to year in a way a salaried applicant’s does not, and mainstream lenders often treat that variability as risk. The frustration is a familiar one: your earnings comfortably support the borrowing you need, yet a high-street lender still says no.
Part of the reason is history. Self-certification, where borrowers simply stated their income, is no longer available, and the rules that replaced it are far more rigid. Assessed by the wrong lender, a perfectly affordable case can look marginal on paper. We work with lenders who look past the label and assess your real, sustainable income.
How self-employed and contractor mortgages work
Self-employed mortgages aren’t really a separate product. They are standard lending assessed differently, with the focus on evidencing income and affordability rather than a single payslip. Most lenders look for around two years of accounts with a consistent track record, though some will consider just one year, and a growing number take a sensible view of contractors on the strength of the contract itself.
A good accountant matters here. Up-to-date accounts, SA302s or tax-year overviews are what let a lender justify your average earnings. Your structure shapes the case too: sole trader, partnership, or director of a limited company are each assessed differently, and retained profit, dividends, bonuses and commission can all be brought into the calculation by the right lender, even where others ignore them.
Mortgages for contractors
Contractors are assessed differently again, and, done well, often more generously than they expect. Specialist lenders will typically base income on your contract day rate rather than years of accounts, commonly calculating it as day rate × 5 days × 46 to 48 weeks. A strong day rate can therefore support far more borrowing than the two-year-accounts route suggests, and many lenders will consider you with only a few months on your current contract, sometimes from day one of your first.
How you contract matters. Whether you work through your own limited company, an umbrella company, or as a sole trader, we know the lenders who assess each structure fairly, and how your IR35 status (inside or outside) affects the way income is evidenced and which lenders will take a view. For limited-company contractors, some lenders can also consider retained profit alongside salary and dividends where it strengthens the case.
We place contractor cases across the sectors where day-rate working is common, including IT and technology, engineering, financial services, management consultancy, oil and gas, construction (CIS), and medical and healthcare locums. Whatever your field and contract structure, we package the case so the lender sees a straightforward, strong application.
How Soul Mortgages helps
We arrange self-employed and contractor mortgages every week and know which lenders assess income fairly for each situation. We package the case properly, with your accounts, contract, structure and income presented clearly, so the lender sees strength rather than complexity and you borrow in line with what you actually earn.
Talk to a self-employed mortgage specialist →
Your home may be repossessed if you do not keep up repayments on your mortgage.
Accounts, day rates and how lenders assess your income.
How many years’ accounts do I need?
How do lenders assess self-employed income?
Can contractors get a mortgage on a day rate?
What if I’ve recently gone self-employed?
Your home may be repossessed if you do not keep up repayments on your mortgage.