How do lenders assess IT contractors for mortgages?

Lenders typically assess IT contractors based on their contract rate, length of contracting history, and day rate. Many lenders will use your daily rate multiplied by the number of working days (usually 220-230) to calculate annual income.

What documents do IT contractors need for a mortgage?

Required documents typically include current and previous contracts, company accounts (if operating through a limited company), SA302s, tax returns, and bank statements. Some lenders may also require evidence of contract extensions or future work.

Can I get a mortgage as a new IT contractor?

Yes, some specialist lenders offer mortgages to new contractors, though you may need a larger deposit (typically 15-25%) and may be limited to certain lenders. Having a strong employment history in the IT sector can help.

Specialist Mortgage for IT Contractors

Introduction
Eligibility Criteria
Mortgage Products
Application Process
Mortgage Calculator
Why Use Specialist Advice
Frequently Asked Questions
Next Steps

Understanding Contractor Mortgages

Contractor mortgages are specialist financial products tailored for individuals with non-traditional income, such as IT professionals working on a contract basis. Unlike conventional mortgages that focus on salaried employment, these products may consider:

Day rate calculations (typically annualised)
Contract stability (e.g. duration and renewal likelihood)
Sector demand (which can be particularly strong in IT)

Important Notice: Your home may be repossessed if you do not keep up repayments on your mortgage. We are a credit broker, not a lender. We may receive a commission from lenders.

Who Qualifies for a Contractor Mortgage?

Key Eligibility Criteria

Contract History: Minimum 6 months, ideally 12+ months

Day Rate: £300+ (varies by lender), ideally £500+

Visa Status: Valid work visa, ideally Indefinite Leave to Remain

Credit Score: Fair (650+), ideally Good (700+)

Additional Considerations

Contract renewal likelihood

Industry demand and stability

Financial reserves and deposit size

Required Documentation

Copies of the last 2–3 contracts

Business bank statements (6–12 months)

SA302 tax calculations (if self-employed)

Proof of deposit and savings

Types of Contractor Mortgage Products

Fixed-Rate Mortgages

Interest rate remains unchanged for a set term, typically 2–5 years. Suitable for contractors seeking stable monthly repayments.

Predictable monthly payments
Protection against rate rises
Early repayment charges may apply

Interest-Only Mortgages

Monthly payments cover interest only; the original loan amount must be repaid separately. Suitable for experienced contractors with a viable repayment strategy.

Lower monthly payments
Requires repayment strategy
Higher deposit typically needed

Variable-Rate Mortgages

The interest rate can increase or decrease depending on market conditions and lender policies.

Flexibility to switch products
Potential for lower rates
Monthly costs can fluctuate

The Mortgage Process

Documentation

Gather and prepare all required documents, including contracts, bank statements, and proof of income

Affordability Assessment

Lenders assess borrowing power using your day rate and contract stability

Lender Matching

We compare high street banks, specialist lenders, and niche providers

Application & Offer

Submit application and receive mortgage offer upon approval

Instant Mortgage Quoting

Use the quick and simple quotation system to get a mortgage quote in seconds.

Why Use Specialist Advice?

Expert Knowledge

Over 10 years' experience in contractor mortgages with deep understanding of IT sector requirements

Specialist Access

Access to lenders who understand the IT sector and contract-based income structures

Personalized Service

Free initial consultation with no obligation to proceed, tailored to your specific needs

Ongoing Support

Comprehensive guidance throughout the application process and beyond

Frequently Asked Questions About Contractor Mortgages

Some lenders will consider applications after six months of contracting, particularly where there is strong professional experience, high demand in your sector, and evidence of financial stability. Approval is not guaranteed.

Yes. If your contract falls inside IR35, your income may be treated similarly to that of a permanent employee. If outside IR35, lenders often review retained profits and company accounts. Some lenders specialise in assessing these cases.

In some cases, lenders may consider up to 50 percent of retained profits, typically where the business has a trading history of at least two years. Each lender applies its own policy.

Next Steps

Ready to Get Started?

If you're considering a contractor mortgage:

Request a personalised initial quote
Book a consultation with one of our contractor mortgage specialists

Calculate Your Mortgage

Important Information and Regulatory Disclosure

Risk Warning: Your property may be repossessed if you do not keep up repayments on your mortgage.

Adviser Disclosure: This content is for informational purposes and does not constitute personalised financial advice. Mortgage advice will be provided after assessing your individual circumstances.

Fee & Commission Disclosure: We act as a mortgage intermediary and may receive commission from lenders. A fee may be payable for mortgage advice, which will be disclosed clearly in advance.

FCA Authorisation: This service is provided by WIS Mortgages, which is authorised and regulated by the Financial Conduct Authority.

Specialist Mortgage for IT Contractors

Contents

Understanding Contractor Mortgages