Common Mortgage Myths Contractors Should Ignore

Common Mortgage Myths Contractors Should Ignore

Blog Article

Myth 1: Contractors Can’t Get Mortgages
One of the biggest misconceptions is that contractors can’t get approved for mortgages. This is false. Many lenders offer specialist products for contractors, and with the right guidance, you can secure a mortgage just as easily as someone in permanent employment.

Myth 2: You Need Years of Accounts
While some lenders require 2-3 years of accounts, others are more flexible—especially if you’re working on a day rate contract. In many cases, a current contract and recent bank statements are enough to assess affordability, particularly if you work through an umbrella company or have a solid contract history.

Myth 3: You Can Only Borrow a Small Amount
Contractors are often told they can’t borrow as much as full-time employees. In reality, lenders who understand contractor income will base affordability on your annualised contract rate, which often results in a higher borrowing limit than expected.

Myth 4: You Need a Permanent Job to Get Good Rates
This myth can stop many contractors from applying for a mortgage. Specialist lenders and brokers understand that contractors have reliable income too. If your financials are in order, you can access competitive rates and terms similar to those offered to permanent employees.

Myth 5: All Lenders Treat Contractors the Same
Not all lenders are equal when it comes to contractors. Some are very contractor-friendly, while others may use outdated methods to assess your income. This is why working with a specialist broker is key—they know which lenders will view your application positively.

Let Us Help Bust the Myths
At Contractor Mortgage Solutions, we help debunk these myths daily. Our experts understand contractor finances and work with trusted lenders who do too.

Ready to Apply?
Don’t let misinformation hold you back. Contact Contractor Mortgage Solutions today and let’s get your mortgage journey started—with confidence and clarity.