Contractor Mortgage Bad Credit

Get in touch today to discuss the most suitable mortgage option for you.

Bad credit isn’t necessarily a barrier to finding a good mortgage deal, even for Contractors and the Self-Employed. The key is to identify sympathetic lenders and compare all the options – something we can do on your behalf. 

Can I get a Contractor Mortgage with bad credit?

Getting a mortgage will always depend on the specifics of your situation. The good news is that Contractors can generally consider all kinds of mortgage products, as most lenders welcome the Self-Employed. It helps if you have been in business for at least a year and have a deposit ready. 

When bad credit scores are involved, the severity of your debt problems is important. A missed payment or two or a default on a phone contract isn’t too serious – but bankruptcy, CCJs or IVAs can restrict your options.

How can a Mortgage Broker help?

Our job as Mortgage Advisors is to research the mortgage market on your behalf and give you clear recommendations about how you can achieve your property goals. We’ll explain how a Mortgage Lender might see you and how you can maximise your borrowing potential. 

Every lender has their own criteria and will consider Contractors in different ways. They may view you as Self-Employed, as a Limited Company Director or specifically as a contract worker. We understand which lenders will suit your situation best, and compare their products looking at interest rates, fees and criteria.

By looking at your credit file we will give you clear and honest feedback about whether your credit report will be acceptable to a lender. Occasionally, our clients decide to wait 12 months before applying for a mortgage, and focus on improving their credit situation first.

Speak To An Expert

We’re able to tap into our local knowledge to guide you through your house purchase in your chosen area.

Why is the deposit amount critical if I have bad credit?

Every lender wants reassurance that you will repay the money that you want to borrow. If you can put down a larger deposit, you’re showing your commitment to the house purchase, and you will also reduce the size of the monthly repayments on your mortgage. This is a good sign to a lender and will make them see you as a less risky customer. Smaller repayments are also less likely to lead you into further debt. 

If you can put down 20% of the property price in a deposit – or more – you will vastly improve your chances of finding a mortgage at a competitive rate.

What if my application’s declined for a Contractor Mortgage?

Being declined for a mortgage is nothing personal. It is simply a sign that you don’t fully meet the lender’s criteria. It’s very rare for one of our clients to get rejected, as we will only put you forward for a mortgage that is very likely to accept you.

This is even more important for Contractors, as some mainstream or high street lenders could misunderstand the nature of your work. For example, they might see your income as too variable, or feel you haven’t been in your current post for long enough. Meanwhile, several specialist lenders truly understand Contractor mortgage applicants. 

As someone seeking a mortgage with a poor credit rating, finding the right lenders is crucial. We will know the Mortgage Providers that cater for both Contractors and those with credit problems. We will talk to the lender and check that you meet all their criteria before recommending that you apply.

How can I improve my chances of mortgage acceptance? 

An important first step is to check that your credit record is accurate. An error can be corrected quite easily. Then, focus on improving your credit rating by repaying any debts, paying all bills on time and staying within your credit limits. 

Once you are ready to apply for a mortgage, make sure you have bank statements and business records in order. You may need company accounts, self assessment records and details of past and current contracts. 

Most importantly of all, contact a good Mortgage Broker. We will advise you at every step: setting your property budget, seeking out the lenders offering bad credit mortgages and ensuring that they recognise you as a Contractor. We will also make sure you avoid future debt problems by ensuring that your mortgage is truly affordable. 

We’re registered in England and authorised and regulated by the Financial Conduct Authority, so contact our registered office today for an initial chat about how we can help.

Your property may be repossessed if you fail to keep up the repayments on your mortgage.

Why Choose Us?

Why Choose Us?


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