Buying your first home as a contractor can feel overwhelming - but it doesn't have to be. With the right approach, you can secure a mortgage that reflects your true earning potential. Here's exactly how to make it happen.
Why Contractor First-Time Buyers Face Extra Hurdles
The "Payslip Problem"
Most high-street lenders want 3+ years of accounts, but what if you're new to contracting?
Deposit Challenges
Without years of PAYE history, saving a 15-20% deposit becomes crucial
Lender Confusion
Many underwriters don't understand contractor income structures
5 Steps to Mortgage Approval
1. Choose the Right Lender
Specialist lenders accept:
✓ 1-year contracting history (sometimes less)
✓ Day rate calculations (not just salary)
✓ Future contract potential
2. Boost Your Deposit
15% minimum recommended (10% possible with certain lenders)
Consider:
• Help to Buy schemes
• Family guarantor options
• LISA bonuses
3. Prepare Your Paperwork
Essential documents:
12+ months of bank statements
Current contract (6+ months remaining ideal)
SA302s if self-employed
Accountant's reference
4. Improve Your Credit Profile
Check your report 6 months before applying
Reduce credit card balances below 30% limit
Avoid new credit applications
5. Work With a Specialist Broker
We know which lenders are contractor-friendly
Can often secure higher loan-to-value ratios
Help structure your application for success
Case Study: How Mark Got Approved
(24-year-old IT contractor, 1-year history, £450/day rate)
High-street bank offer: £210,000
Through specialist lender: £320,000
Key difference: Used day rate calculation instead of salary
Common First-Time Buyer Mistakes to Avoid
❌ Applying to high-street banks first (can damage credit score)
❌ Assuming you need 3+ years of accounts
❌ Not getting an Agreement in Principle before house hunting
Ready to Take the First Step?
Our team specializes in helping contractors buy their first home. We'll match you with the perfect lender and guide you through the entire process.
Get Your Free First-Time Buyer Assessment Today
Why This Works:
Addresses specific pain points for contractor FTBs
Provides clear, actionable steps
Includes real-world example for credibility
Strong CTA to convert readers into leads