Mortgages for IT Contractors

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Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:


Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:


Navigating the mortgage market as an IT contractor can be daunting. With fluctuating incomes and less conventional employment contracts, the path to homeownership might seem strewn with hurdles. But worry not—this article, crafted by Alison Gibson, a seasoned UK mortgage expert, is your compass to finding and securing the right contractor mortgage. We’ll explore the avenues for mortgages for IT contractors and debunk the myth that a traditional 9-to-5 job is the only route to getting a mortgage.

Can an IT Contractor Get a Mortgage?

The simple answer is, yes, an IT contractor can get a mortgage. However, the journey to mortgage approval may differ from that of a permanent employee. As a contractor, you’re often perceived as a higher risk by lenders due to the variable nature of your income. But with the right mortgage broker and a clear understanding of what lenders look for, securing a mortgage as a contractor is entirely feasible.

How Much Can You Borrow?

The amount you can borrow will depend on several factors, including your contract rate, the length of your contracting history, and the lender’s criterion. Here is a table outlining approximate figures for how much an IT contractor can borrow, based on different daily rates:
Daily Rate (£) Annualised Income (£) Potential Mortgage Borrowing (£)
350 84,000 378,000
400 96,000 432,000
450 108,000 486,000
500 120,000 540,000
550 132,000 594,000
600 144,000 648,000
The figures in the table are based on a typical lending calculation where the contractor works 48 weeks per year at 5 days per week, and the mortgage provider uses a multiplier of 4.5 times the annualised contract income to estimate the potential mortgage amount available

How a Mortgage Broker Can Help an IT Contractor Get a Mortgage

A specialist mortgage broker can be instrumental in your mortgage quest. With in-depth knowledge of the market and access to contractor-friendly lenders, they can steer you towards the best deals and navigate the complex income assessments that accompany a mortgage for contractors.

What are the Eligibility Criteria?

Eligibility criteria for an IT contractor mortgage can vary between lenders. Generally, you’ll need to provide proof of your contract rate, show consistency in your work, and often have at least a year’s worth of contracts behind you. Some lenders may require a larger deposit or offer less competitive rates, but a specialist broker can help you find a lender whose criteria you meet.

5 Top Mortgage Tips for a Successful IT Contractor Mortgage Application

  1. Maintain Your Financial Records: Keep your accounts up to date and ensure your paperwork reflects your income accurately.
  2. Build a Healthy Deposit: The more you can put down initially, the better your mortgage rate options.
  3. Understand Your Borrowing Capacity: Know how lenders will view your contract income and how it affects how much you can borrow.
  4. Work With a Specialist Broker: Leverage their expertise to find a lender that understands the contracting world.
  5. Prepare for Scrutiny: Be ready for a thorough check of your financial stability and history of contracting.

Conclusion and Reach Out

Securing a mortgage as an IT contractor doesn’t have to be a herculean task. With the right advice, lender, and broker, you can navigate the mortgage maze and find your way to a new home. If you’re ready to take the next step or need tailored advice, contact Ascot Mortgages at 01925 711558 or [email protected]. Your dream home may be closer than you think.

Alison Gibson is a seasoned mortgage expert at Ascot Mortgages, specialising in providing bespoke mortgage advice to professionals across the UK. To find your match and start your journey towards your ideal mortgage, you can reach out to us directly at 01925 711558 or send an inquiry through our online platform.

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