Top Mistakes Contractors Make When Applying for a Mortgage
Top Mistakes Contractors Make When Applying for a Mortgage
Blog Article
Applying for a mortgage as a contractor comes with unique challenges — but many of the hurdles are avoidable with the right knowledge and support. Here are some of the most common mistakes contractors make during the mortgage process and how to avoid them.
1. Applying Through the Wrong Lender
Not all lenders understand how contractors get paid. Applying through a high street bank that doesn’t specialise in contractor mortgages can lead to rejection, even if you earn a strong income. Always choose a broker with access to contractor-friendly lenders who consider your day rate and contract terms.
2. Poor Record-Keeping
Inconsistent paperwork, missing contracts, or unclear income records can delay or derail your application. Make sure your contracts, payslips, invoices, and bank statements are up to date and well-organised. This helps lenders assess your income quickly and confidently.
3. Not Checking Credit Reports
Even a small issue on your credit report can affect your mortgage offer. Before applying, check your credit file for any mistakes or missed payments. Clear any debts you can and avoid taking on new credit during the application process.
4. Switching Contracts Too Often
Frequent changes in contracts or gaps in work history can make you look like a risky borrower. Try to maintain continuity in your contracting history, especially in the months leading up to your application.
5. Going It Alone
Many contractors assume they can apply for a mortgage the same way a full-time employee does — but the process is different. Working with a specialist mortgage broker is key to navigating the process successfully.
Get Expert Help Today
At Contractor Mortgage Solutions, we help you avoid these common pitfalls. Our team knows how to present your income effectively and match you with lenders who understand your work style.
Contact us today and take the stress out of getting your contractor mortgage approved.