Tips for First-Time Buyer Contractors

Tips for First-Time Buyer Contractors

Blog Article

Buying your first home is exciting—but if you’re a contractor, you might be unsure how the mortgage process works compared to traditional employees. The good news is: you can absolutely get on the property ladder, and often with competitive mortgage deals tailored to your situation.

Here are our top tips to help first-time buyer contractors succeed.

1. Get Your Paperwork in Order
As a contractor, proving your income is key. Lenders may ask for:

Your current contract

Previous contracts to show work history

Bank statements (usually 3–6 months)

SA302s and tax overviews (if self-employed)

Organising these in advance can speed up the process and give lenders confidence in your financial stability.

2. Save for a Strong Deposit
Although some lenders offer 5% deposit mortgages, having at least 10–15% saved up will:

Improve your chances of approval

Give access to better interest rates

Reduce your monthly payments

Use a Help to Buy ISA or Lifetime ISA if eligible, as they can boost your savings with a government bonus.

3. Work with a Specialist Broker
Mainstream banks may not fully understand contractor income. A contractor mortgage broker knows exactly which lenders will:

Accept your contract rate instead of salary

Be flexible with self-employed or umbrella company earnings

Offer mortgage options with affordable monthly payments

4. Check and Build Your Credit Score
Before applying, review your credit report and:

Correct any errors

Pay down outstanding debts

Avoid new credit applications

A strong credit profile increases your chances of securing a great mortgage deal.

5. Be Realistic About Affordability
Calculate your budget based on your actual income and consider future expenses (like home maintenance or council tax). Mortgage lenders will also run affordability checks to ensure you can manage repayments.

Final Thoughts
Being a first-time buyer and a contractor doesn’t have to be overwhelming. With the right preparation and guidance, your homeownership journey can be smooth and successful.

At Contractor Mortgage Solutions, we’re here to support first-time contractors every step of the way—from finding the right lender to getting those keys in your hand.