Yay! I’ve won my first contract. When can I get a mortgage?

The advantage of contract-based underwriting is that you don’t have to rely on accounts. That’s how they differ from most other types of mortgages for self-employed people. Using your annualised contract dispenses with the need for two years’ documented trading history.

So in theory, you could secure a contractor mortgage on the first day of your first contract. But there is a caveat.

Lenders have a duty of care to their shareholders, the FCA and customers alike. That is, all customers must prove that they can afford to repay any loans the lender forwards.

If you are just beginning your contracting career, they’ll want to see at least two years’ experience in the same line of work. That’s because they need to prove that you’re not as wet behind the ears as the ink is on the document.

You’ll need to provide your CV along with your application. It must include your most recent work history. Moreover, that history should reflect the industry in which you intend to work as a contractor.

So, yes. You can get a mortgage as soon as you begin contracting. But please be aware: financiers have an obligation to adhere to responsible lending guidelines.

Author: John Yerou

John Yerou is a pioneer of contractor mortgages and owner and founder of Freelancer Financials, Contractor Mortgages®, C&F Mortgages and Self Employed Mortgages, trading styles and brands of the award-winning Mortgage Quest Ltd.

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