In this article
If you’re working on short-term contracts, zero-hours agreements or freelance projects, you might be wondering whether getting a mortgage is realistic.
The answer is yes, contractor mortgages are possible, though lenders will look at your income a little differently depending on how you earn it.
Contractor Mortgages
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Who Counts as a Contractor or Gig Worker?
You may fall into this category if you’re:
- On fixed-term or rolling contracts
- Self employed or working through an umbrella company
- Taking work through an agency or app
- Working zero-hours shifts for one or more employers
Lenders don’t treat all of these in the same way, so it’s important to know how they’ll assess your income based on your role.
Contractor Mortgages and Day Rate Assessments
If you’re on a professional contract with a defined day rate, such as in IT or engineering, some lenders will calculate your annual income by multiplying your rate by five days a week and assuming 46 working weeks in a year.
This approach works well if you’ve been in similar roles for at least a year, even if your current contract is relatively new. The lender may also want to see that your work is likely to continue.
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Mortgages for Freelancers and Sole Traders
If you’re self employed, most lenders will look at your earnings from the last one to two years. For sole traders, this usually means your net profit.
If you run a limited company, it’s typically your salary plus dividends, though some lenders will consider retained profits too.
This is where having your finances structured correctly matters. If you’ve kept your declared income low to reduce your tax bill, that may limit how much you can borrow.
What If You’re on a Zero-Hours Contract?
It’s still possible to get a mortgage, though lenders will want to see that your income is consistent. In most cases, you’ll need 12 months of payslips or bank statements showing your earnings across that time.
Lenders will look at your average income and assess whether it’s stable and likely to continue. They may also ask about the nature of your work and whether you have any other income streams.
What Documents Will You Need?
The paperwork depends on how you’re employed, but you may be asked for:
- A current contract or confirmation of upcoming work
- Tax returns or company accounts if self employed
- Bank statements and proof of income
- Photo ID and proof of address
You might also need a larger deposit than someone on a permanent contract, though this varies between lenders. Some are happy with 5%, others may ask for 10% or more.
How UK Moneyman Can Help
We support contractors and gig economy workers every day, helping them understand what they can borrow and how to present their income to a lender.
If you’ve been told no elsewhere, or you’re unsure where to begin, we’ll guide you through the entire process.
From checking your eligibility to preparing your documents and recommending a suitable mortgage deal, we’ll make sure your application is as strong as it can be.
Whether you’re a first time buyer or looking to remortgage, we’re here to help make things more straightforward.
