July 1st, 2025
Getting your first mortgage as a contractor? You’ve built your career on flexibility and independence but, when it comes to getting a mortgage, that same entrepreneurial spirit can sometimes work against you.
As a contractor or freelancer, your lending profile isn’t one-size-fits-all.
Let’s break down the specific questions lenders will ask, and how you can answer them with confidence:
How much can I borrow on my income?
Lenders will want to see a reliable income history. But how do you prove it when you invoice rather than clock in?
- Some lenders will average your last two years of accounts or tax returns.
- Others may use your most recent year, especially if you can show a strong pipeline of work.
- Contractors often ask: Can day rates count as income? The answer is yes – some lenders will accept your day rate multiplied over the year, rather than your net profits. It’s a smart workaround that can increase your borrowing potential.
Tip: We can help you present your income in the best possible light.
How much deposit do I need?
Most lenders ask for a minimum 5% deposit, but a larger one (10–15%) usually gives you access to better mortgage rates.
- If you’re using personal savings, the funds need to be traceable.
- If the deposit is gifted (e.g. from family), you’ll need a letter confirming it’s not a loan.
- Some lenders are open to combining savings with gifted deposits, which can give you more flexibility.
What do I need to prove future work?
As a contractor or freelancer, proof of ongoing income is key. You should have in hand:
- Signed contracts, renewal clauses, or letters of intent are all valuable.
- Invoices or retained clients also help paint a picture of stability.
Even if you have gaps between projects, that doesn’t automatically count against you. What matters is being able to show a consistent overall pattern of income. We can help you present those gaps in context, in a way lenders are familiar with and comfortable assessing.
Which lenders are contractor-friendly?
Not all lenders treat self-employed applications the same way. Common concerns we hear include:
- Will my limited company income be accepted in full?
- Can I apply with just one year of trading?
- Will day-rate income be considered over net profit?
Thankfully, we work with lenders who understand how you earn – including Accord Mortgages, Kensington Mortgages, Metro Bank, Nationwide and Skipton. They all offer mortgage products and services suitable for contractors, and will help you avoid wasting time on those who don’t.
Can I get a mortgage with one year of accounts?
Yes, some lenders are happy to accept just one year of trading history – even more so if you’ve recently gone self-employed in the same industry.
- You’ll likely need a strong credit score (read our blog on Credit Score here) and a healthy deposit.
- Future income (such as signed contracts) will also help strengthen your application.
- Having an adviser explain your background to the lender makes a real difference here.
What if my income fluctuates?
It’s completely normal for self-employed income to vary – especially between contracts, seasons, or industries. Lenders understand this more than they used to.
- Some will average your earnings over several years to even things out.
- Others will use your most recent year if it shows a clear upward trend.
- The key is clarity – being able to explain why your income moves and how it’s sustainable.
This is where a specialist broker can really help you present the full story, not just the numbers.
Final thoughts
Getting your first mortgage shouldn’t be complicated, no matter what you do for work. With the right approach, documentation and support, many of the barriers self-employed professionals face are entirely manageable.
At CMME, we help contractors and freelancers get mortgage-ready from day one. We’ll show you what documents to start pulling together, which lenders are most likely to say yes, and how to smooth out bumps before they happen.
Thinking about buying your first home? Reach out for a quick chat with us: