First Time Buyer Contractor Mortgages
First time buyer looking for mortgage?
A contractor mortgage for first-time buyers is designed to meet the unique financial circumstances of contractors entering the housing market.
Unlike traditional mortgages that rely heavily on regular PAYE income, contractor mortgages consider the contractor’s contract earnings (day or hourly rate) to assess affordability. This approach allows contractors, who may have irregular income patterns, to secure a mortgage based on their gross contract rate.
These specialised mortgage products offer flexible terms and competitive rates, making it easier for first-time contractor buyers to purchase their dream home.
Tailored Mortgage Solutions for First-Time Contractor Buyers
At Contractor Mortgage Solutions, our deep experience with contractors across all industries allows us to understand your unique working arrangements, whether you operate as a Limited Company, PAYE Contractor, or through an Umbrella.
This insight enables us to secure competitive first-time buyer mortgages tailored to your true affordability, often with exclusive terms from our close relationships with underwriters. No matter who you are or what you do, we offer financing options based on your day/hourly rate, ensuring you can qualify for your first mortgage.
Limited Company
Is a business structure where contractors manage their income separately from personal finances, impacting their mortgage application.
Paye Contractors
Works on a contract basis, employed through an umbrella company or agency, with mortgage applications based on their day or hourly rate.
Umbrella Companies
Is a third-party firm that employs contractors and manages their income, affecting mortgage evaluations.
We Operate Based on Your Day Rate
We specialize in securing mortgages for contractors based on their contract earnings alone.
No tax returns, no accounts
We have helped numerous contractors over the last decade to purchase their first homes and investment properties. We work daily with lenders to offer tailored contractor mortgages rarely found on the High street or Online.
We Operate Based on Your Day Rate
We specialize in securing mortgages for contractors based on their contract earnings alone.
No tax returns, no accounts
We have helped numerous contractors over the last decade to purchase their first homes and investment properties. We work daily with lenders to offer tailored contractor mortgages rarely found on the High street or Online.
Use our calculator to estimate your borrowing power based on your day rate
Please note, that this calculator only provides indications of possible borrowings. Contact us for a free bespoke contractor mortgage recommendation.
Ready to discuss your options?
Don’t let traditional mortgage requirements hold you back. Secure your first-time buyer mortgage based on your day rate and achieve your homeownership goals today with us!
How much deposit do first-time
buyers need?
The current market, shaped by global events, has made lenders more cautious about the amounts they lend. As a result, they often require higher loan-to-value (LTV) ratios, usually 15% or more. Therefore, contractors need the expertise of a seasoned broker now more than ever to secure the best deal with lower LTVs (10% or less).
At Contractor Mortgage Solutions, based in North London, we specialise in helping contractors buy their first home. Whether you operate through a limited company, an umbrella company, or are on the CIS scheme, we can guide you onto the property ladder.
Simple contractor mortgage
process: Less Paperwork,
Maximum Results
To secure a first-time buyer mortgage as a contractor, you will typically need to provide a significant amount of documentation. Thanks to our extensive experience, we’ve streamlined this process to minimise paperwork. Send us:
- A signed copy of your contract confirming your day or hourly rate.
- 3 months of bank statements showing your earnings.
- An updated CV with your employment history.
- Proof of ID (usually a passport, driving licence, or utility bill.
This efficient approach helps us secure your mortgage with less paperwork than you’d encounter with High Street advisors. We ensure that, based on your rate, we find the best mortgage product to maximise your borrowing power and reduce your repayments.
Simple contractor mortgage
process: Less Paperwork,
Maximum Results
To secure a first-time buyer mortgage as a contractor, you will typically need to provide a significant amount of documentation. Thanks to our extensive experience, we’ve streamlined this process to minimise paperwork. Send us:
- A signed copy of your contract confirming your day or hourly rate.
- 3 months of bank statements showing your earnings.
- An updated CV with your employment history.
- Proof of ID (usually a passport, driving licence, or utility bill.
This efficient approach helps us secure your mortgage with less paperwork than you’d encounter with High Street advisors. We ensure that, based on your rate, we find the best mortgage product to maximise your borrowing power and reduce your repayments.
Why do first-time buyers choose us?
Client testimonials
Fee Jav
Client
Fantastic service from Mo and his team at Contract Mortgage Solutions. They made my remortgage process easy and efficient. A real pleasure to deal with, and I highly recommend them as great mortgage brokers.
Goretty Dias
Client
Mo is extremely professional and has helped me with new and remortgage transactions over the past 3 years. Contract Mortgage Solutions is efficient, communicative, and resolves issues well. Highly recommend!
Layla De Freitas
Client
Mo and his team have provided our mortgage for 7 years, helping us remortgage 3 times. Mo goes above and beyond with in-depth market knowledge and excellent service, even with our changing plans. Thank you!”
FAQ’S
Can I get a contractor mortgage as first time buyer if I have bad credit?
Yes, securing a contractor mortgage as a first-time buyer is possible even with bad credit. However, a poor credit history may limit your options and lead to higher interest rates or stricter lending criteria. We recommend consulting with one of our specialist advisors, as lenders offer tailored products for different credit profiles. Choosing the right lender is essential for a successful mortgage application.
Will I still be able to secure a mortgage if I've had breaks between contracts?
We recommend that all mortgage applicants (whether first-time buyers or those looking to acquire additional property) minimize long breaks between contracts. While most lenders accept short breaks, larger gaps may raise concerns with underwriters. If you have concerns about your contract history, please reach out to one of our specialists for expert guidance.
Can I get a first time buyer contractor mortgage if I’m self-employed?
Yes, contractor mortgages are available for self-employed individuals. Contractors and freelancers often fall into the self-employed category. However, lenders may require additional documentation to verify your income stability and affordability. As with typical contractor mortgages, it’s best to discuss your options with a specialist.
How can I check my credit score?
To check your credit score, request a copy of your credit report from major bureaus like Experian, Equifax, or TransUnion. Many offer free access to your score and report. You can also use online services for monitoring and alerts. Regularly reviewing your credit report helps you understand your standing, spot inaccuracies, and make improvements before applying for a mortgage.
If you need any assistance in this regard, we would be more than happy to guide you through the process.
What are the other charges you have to pay for buying your first home?
When buying your first home in the UK, there are several additional charges to consider beyond the purchase price:
- Stamp Duty Land Tax (SDLT): This is a tax on property purchases. First-time buyers may be eligible for relief, but rates vary depending on the property’s price.
- Legal Fees: Solicitors or conveyancers handle the legal aspects of the purchase, including searches and contracts. Fees typically range from £500 to £1,500.
- Survey Costs: A survey assesses the property’s condition. Costs vary depending on the survey type, from basic home condition reports to more detailed structural surveys, generally between £300 and £1,000.
- Mortgage Arrangement Fees: Lenders may charge fees for setting up the mortgage, which can range from £0 to £2,000. Some mortgages have no fees or offer to add the cost to the loan.
- Valuation Fees: Lenders usually require a property valuation to approve the mortgage. This fee is often covered by the borrower and can range from £150 to £1,500.
- Removal Costs: The cost of moving your belongings can vary based on distance and volume, typically ranging from £300 to £1,500.
- Insurance: Buildings insurance is mandatory, and contents insurance is recommended. Costs vary based on coverage and property value.
- Land Registry Fees: This fee is for registering the property in your name and varies based on the property’s value, ranging from £40 to £910.
- Ongoing Costs: Don’t forget about ongoing costs like council tax, utilities, and maintenance.
It’s essential to budget for these additional costs to ensure a smooth home-buying process.
Are there other kinds of mortgages for first time home buyers?
Yes, there are several options available for first-time home buyers. Joint mortgages allow you to buy with someone else, potentially achieving a bigger deposit and making a higher mortgage more affordable. Shared ownership grants selected first-time buyers a long-term, low-interest loan to purchase an equity stake in a home. Additionally, some lenders offer special incentives such as cashback or preferential rates. We will include these in our search to ensure we find you the best deal.
How much I can borrow and what will be my monthly payments?
This varies greatly depending on your circumstances—individual lenders use many factors to calculate your borrowing capacity. Use our calculator as a rough guide, but call us for a more accurate figure:
What will be my mortgage interest rate?
The mortgage interest rate depends on multiple factors, including the interest rate set by the Bank of England, your credit score, down payment, loan-to-value (LTV) ratio, and the loan term. Consequently, the interest rate varies for each individual. However, with our experience and strong relationships with contract-friendly lenders, we can find the best deal tailored to your needs.