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Mortgages For IT Contractors 

If you are currently looking to buy a property and you work as an IT Contractor you may be confused as to how you can go about finding the right mortgage for your circumstances. As an IT contractor, you are likely to be in what many lenders regard as unstable employment. 

Contracting often means taking on a variety of contracts that last for weeks or months at a time, rather than working in a permanent position that pays a stable salary. It’s well-known that those who are self-employed or spend their time contracting can have a much harder time getting the mortgage that they want compared to those who are in permanent, full-time work.

Mortgages for IT contractors are assessed differently in comparison to a salaried, PAYE applicant. They often do not have a consistent income from a permanent employer and, even though some lenders will take on those without a permanent income, the application process will still differ for you if your employment involves contracting.

How easy is it to secure a mortgage as an IT contractor?

At the present time, it’s easier to secure a mortgage if you are a self-employed contractor than it used to be. Employment expectations have changed in recent years as more and more people choose to contract their skills and work for themselves. Mortgage lenders are adapting to provide mortgage assessments that are suitable for these individuals. 

How do mortgages for IT contractors work?

If you are an IT contractor without a fixed income but you are looking to apply for a mortgage and buy a home, then speaking with a broker that has experience in securing mortgages for IT contractors is very useful. 

During the application process, a lender will assess your application and decide whether your income can keep up with the payments required on the mortgage. 

This process takes into account your credit history, your finances at the time, and your previous circumstances, too. Applicants who have an excellent credit record, a reasonable deposit, and a stable income won’t find it too hard to get a mortgage. However, contractors do not generally have the benefit of a stable income and even if you have some regular clients, it’s not a guarantee to the lender that you are going to be able to pay back the loan for the full term.

Mortgages for IT contractors are usually provided by lenders who understand the higher risk but whilst there are an increasing number of self-employed mortgage products available, this doesn’t mean you will be guaranteed to get a loan.

How are mortgages for IT contractors assessed?

Mortgages for IT contractors differ from the regular mortgages in their assessment process. Conventional mortgages will look at your earnings and see how much you are spending in some detail, but contractor mortgages will go through your working situation with a fine-toothed comb. 

The eligibility criteria differs in that, the length of your current contracts will be taken into consideration, as will the contract rate or day rate you charge, the hours you work, and what you earn during those hours. When your mortgage is assessed this way, you may find that it works in your favour compared to a mortgage that is assessed on a PAYE income.

What if I have a limited company?

The mortgage application process may differ for those who work through their own limited company rather than as a sole trader. You could find that your lender may only take your current personal earnings into account, not the profitability of the company as detailed in your company accounts. 

Specialist banks and building societies will be able to advise you on the best course of action and the right mortgage broker will be able to recommend those lenders for you and help find the most suitable mortgage loan.

Should I consider using a Mortgage Broker?

IT contractors looking for a mortgage would be well advised speaking to an expert mortgage broker who is authorised and regulated by the Financial Conduct Authority FCA who will help find a lender who is most suitable for your own circumstances. Some brokers will have exclusive offers available and discounted interest rates that could be suitable for IT contractors, from high street banks and other lenders.

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What Are IT Contractor Mortgages? How Do They Work?

If you are an IT contractor without a fixed income but you are looking to apply for a mortgage and buy a home, then specifically designed IT Contractor Mortgages are the best option for you. 

They have been put together specifically for those working in the IT industry, which, as we all know, is ever-changing. During the application process, a lender will assess your application and decide whether your income can keep up with the payments required on the mortgage. 

This process takes into account your credit history, your finances at the time, and your previous circumstances, too. 

IT Contractor Mortgages are usually provided by lenders who understand the higher risk but whilst there are an increasing number of self-employed mortgages available, this doesn’t mean you will be guaranteed to get a loan.

Should I Consider Using A Mortgage Broker?

IT contractors looking for a mortgage would be well advised speaking to an expert mortgage broker who is authorised and regulated by the Financial Conduct Authority FCA who will help find a lender who is most suitable for your own circumstances. Some brokers will have exclusive offers available and discounted interest rates for IT Contractors from high street banks and other lenders.

Contact us today so we can guide you through the process

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