If you are a contractor or are self-employed, securing a mortgage can be a challenge. Before the credit crunch things were more straightforward with self-certifying mortgages allowing those with a fairly new self-employed status to get on the property ladder. As the recession took over, the market changed dramatically and the self-certified era came to an end.

Contractor Friendly Mortgage Lenders


Interest-only mortgages also swiftly came to an end which meant contractors or the self-employed had no choice but to submit evidence of historical income. As the numbers of self-employed and contractor workers has increased the banks have had to think again. Now thankfully things have improved and the number of affordable contractor mortgages has increased. There are a number of contractor friendly lenders on the market where affordability is based on your contract rate alone, not on your accounts. As a result of basing your suitability for a mortgage on your annual contractor income, you will find there is a higher opportunity of securing the loan you need, as either a first-time buyer or as a seasoned home owner who wants to move up the property ladder.

It can be difficult shopping for a contractor mortgage on the high street as advisors may not fully understand the complexities of self-employment or contractor status. That’s why you need to come to the experts to ensure all options are made available to you. The Cambridge based team from Limetree have over 75 years’ industry experience and are specialists in contractor mortgages. We are here to ensure you get the best deals that are open to you and that you secure the mortgage perfect for your needs.

Our experienced advisors have access to a variety of lenders that are considered to be contractor friendly. The advantage of being an independent financial services company with no ties to specific lenders results in a market of possibilities being open to our clients.

We are also happy to work out of normal office hours which can be extremely helpful to contractors and the self-employed, there is no need for you to lose income as a result of a meeting with your mortgage advisor. Our bespoke service ensures that what we offer you is unique to your own requirements and our open and honest service guarantees you understand everything we do from beginning to end. Being regulated by the Financial Conduct Authority is another indicator that you are dealing with an organisation that has your best interests at heart.

So if you would like to discuss how we can secure you a contractor mortgage, give our friendly Cambridge team a ring today on 01223 266140.

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Five tips to help secure the best mortgage for you.

As experienced mortgage brokers we’ve spoken with many people with very different financial situations. There are five things that everyone should do, regardless of how deep your pockets are, to maximise your chances at getting the best mortgage.

  1. Save the biggest deposit you can: Mortgage lenders reserve the best rates for people who can deposit the largest amount.  The loan-to-value is the proportion of the property’s value that you are borrowing. Mortgages are priced by the loan-to-value – the higher this figure is, the more expensive the mortgage will be. E.g. If you can put down a 15% deposit, instead of a 10% deposit you may be rewarded with a lower mortgage interest rate. To get the most competitive mortgage deals on the market, you will usually need a deposit of 25% upwards.
  2. Know your credit score: When you make an application for a mortgage, lenders will refer to your credit score. This is to help them decide if they think you’re a risk worth taking – as a borrower, they need to assess as a borrower you will be a responsible and reliable and likely to repay the debt. Usually, a higher score means you’re seen as lower risk – the more points you score, the more chance you have of being accepted for a mortgage, and at better rates. If you have a low credit score there are things you can do to improve it, we can advise and guide you to get your score back up to where it needs to be.
  3. Pay off unsecured debt and closed unused accounts: If you’re not using an account or credit card it is worth closing it. Lenders will look at the total amount of current and available debt and deduct any credit you have open – even if you aren’t using it.  Because you have the potential to use the credit or an overdraft facility they have to take this into account and this could reduce the amount they will lend you for your property purchase. Additionally leaving open old accounts that you aren’t monitoring could mean that you be a fraud risk, and could also mean some of your details may be out of date which can affect your credit score.
  4. Get on the electoral roll: Lenders need to identify you.  The easiest and more reliable way they can do that is by checking the electoral roll. Your mortgage application may well be refused if you are not registered on the electoral roll at your current address. This is easily remedied. Contact your Local Authority and ask for a registration form or sign up online.
  5. Be prepared with all your documents: A mortgage lender will also require further identification to prove who you are, so make sure you have a current passport and that the address on your driving licence is correct. Other documents you will need to provide include payslips and bank statements for the last three months. You will also need P60s for the last two years, and for employees who receive a bonus must provide evidence of this too. If you receive any other income, such as benefits or maintenance payments, you’ll also need documents to prove this.  If you bring these documents (or send secure copies) to your meeting it means we are armed with all the information we will need to move forward quickly with finding you the best mortgage.

We hope you found those tips useful, if you have any questions or want more information contact us directly or visit the website.

James Hammond

Managing Director

Limetree Financial Services

01223 266140

jhammond@limetreefs.co.uk