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

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

Estimated Reading Time: Less than a minute

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 the owner and founder of C&F Mortgages; a trading style & trade mark of the award winning Mortgage Quest Ltd. One of the most recognised names in providing mortgages for contractors and freelancers across the UK.

In 2004 John began his career in Financial Services as an independent mortgage adviser and broker. John has been instrumental in negotiating bespoke underwriting for contractors with high street lenders.

His presence in the industry as a go-to expert is growing by the day and he is regularly cited and writes in publications both locally and nationally.

Contractor Mortgages

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Last Updated on September 18th, 2018 02:08am.

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Estimated Reading Time: Less than a minute

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 the owner and founder of C&F Mortgages; a trading style & trade mark of the award winning Mortgage Quest Ltd. One of the most recognised names in providing mortgages for contractors and freelancers across the UK.

In 2004 John began his career in Financial Services as an independent mortgage adviser and broker. John has been instrumental in negotiating bespoke underwriting for contractors with high street lenders.

His presence in the industry as a go-to expert is growing by the day and he is regularly cited and writes in publications both locally and nationally.


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