Can First-Time Buyer Contractors Get a Mortgage?

Can First-Time Buyer Contractors Get a Mortgage?

Blog Article

Many contractors who are buying their first home worry that their non-traditional income structure might make mortgage approval difficult. The good news is that contractors can get a mortgage as first-time buyers—it just takes a bit of preparation and the right approach.

1. Lenders Are Becoming More Flexible

In the past, mortgage lenders preferred applicants with permanent, full-time jobs. However, as self-employment and contract work have become more common, many lenders now offer products tailored for contractors, including first-time buyers. These lenders are more willing to consider contract-based income and alternative financial histories.

2. Proving Your Income

The key to getting approved is proving that your income is stable and sustainable. First-time buyer contractors should gather documentation such as:

Recent contracts

Invoices and bank statements

Tax returns (SA302s)

Proof of upcoming work

If you're new to contracting, some lenders may want to see at least 6–12 months of contract history. Others may be more flexible if you’ve recently switched from a permanent role within the same industry.

3. Deposit Requirements

Saving for a deposit is crucial. While some lenders may accept a 5–10% deposit, having a larger one—15% or more—can improve your chances and give access to better mortgage rates. Consider government schemes like Help to Buy or Shared Ownership if you're struggling to raise the full deposit.

4. Credit Score Matters

As with any mortgage application, your credit history will play a big role. Make sure you check your credit score before applying and take steps to improve it if necessary, such as paying off outstanding debts and avoiding new credit.

5. Get Expert Help

A mortgage broker with experience in contractor mortgages can guide you through the process, recommend suitable lenders, and improve your approval odds. This is especially helpful for first-time buyers navigating the mortgage market for the first time.

Conclusion

First-time buyer contractors can absolutely get a mortgage. By preparing your documents, saving for a deposit, and working with a specialist broker, you can take the first step toward homeownership with confidence.