The Contractor Mortgage Checklist
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The Contractor Mortgage Checklist:
7 Documents You Need Before We Apply
When you find the perfect property, the last thing you want is for your mortgage application to be delayed by missing paperwork. For contractors, freelancers, and limited company directors, proving your income to a lender requires specific documentation.
At Broadbench, we specialise in contract-based underwriting, meaning we bypass the high street’s demand for years of audited accounts. However, specialist lenders still require a clean, well-organised paper trail. Use this checklist to gather the 7 essential documents you need before we apply for your contractor mortgage. Being prepared ensures we can secure your Agreement in Principle (AIP) swiftly.
The 7 Essential Documents
This is the most critical document for contract-based underwriting. It must be signed by all parties, clearly state your daily or hourly rate, and show the start and end dates. Ideally, the contract should have at least 4 to 6 weeks remaining, or you should have evidence of an extension or renewal.
Lenders want to see a track record of consistent work. Gather your contracts covering the last 12 to 24 months to demonstrate your experience and employability in your sector. This is especially important if you are a new contractor.
Lenders need to verify your identity, your living expenses, and see your income landing in your account. Statements must be the original PDFs or official paper copies showing your name, address, and account details clearly.
If you operate through a limited company, lenders will want to see the gross contract income entering your business account before you pay yourself a salary or dividend.
You must provide evidence of where your deposit is coming from. If it is in a savings account, provide the statements. If it is a gift from a family member, they will need to sign a “gifted deposit” letter. If you are using retained profits from your limited company, your business bank statements will suffice.
A valid passport or driving licence, plus a recent utility bill or council tax statement (dated within the last three months) matching your current address.
A surprisingly important document for contractors. An up-to-date CV proves to the underwriter that you have a wealth of experience in your field, reinforcing the stability of your future income and your ability to secure further contracts.
Speak to a Broadbench Specialist
Once you have these documents in hand, you are ready to move quickly.
Speak to a Broadbench mortgage expert. We’ll help you secure your Agreement in Principle so you can make an offer with confidence.
FAQs
Can I get a mortgage as a contractor?
Yes. While most high-street lenders struggle to assess contractor income accurately, specialist lenders can assess affordability based on your day rate or contract value. Broadbench works with lenders who understand contractor income structures, helping you borrow in line with your actual earning capacity rather than being limited by payslip-based assessments.
Does IR35 affect my mortgage application?
Yes. Your IR35 status affects how lenders assess your income and which products are available to you. Outside IR35, specialist lenders can use your day rate to calculate affordability. Inside IR35, your gross employment income from your umbrella company or client payroll is used. In both cases, Broadbench will identify the lender and assessment method that gives you the most favourable outcome.
How much can I borrow as a contractor?
This depends on your day rate, contract length, and the lender’s assessment method. Specialist lenders using a day rate assessment will typically multiply your day rate by 5 (days per week) by 46 or 48 (working weeks per year) to produce an annualised income figure, then apply a standard income multiple of 4 to 5 times.
A contractor on a £500 day rate, for example, could have an annualised income assessed at £115,000–£120,000, supporting a mortgage of £460,000–£600,000 depending on the lender and other factors.
I operate through a limited company and take salary and dividends. How will a lender assess my income?
Most high-street lenders will assess only your salary and dividends as drawn, using your SA302 or company accounts. This often understates your income significantly if you retain profits in the company. Specialist lenders using a day rate assessment will bypass this entirely, assessing your income based on your contract rate rather than your drawings. Broadbench will identify the most appropriate assessment method for your specific income structure.
I work through an umbrella company. Can I still get a specialist contractor mortgage?
Yes. Specialist lenders who understand umbrella company income will assess your gross contract value or gross employment income rather than your net take-home pay, giving you access to borrowing that reflects your actual earning capacity. Broadbench works with lenders who take this approach for umbrella company contractors.
My IR35 status recently changed. Does this affect my mortgage options?
It can. A recent change in IR35 status affects how lenders assess your income and may require you to demonstrate a period of trading history under your new status. Broadbench advisers will assess your current position and identify lenders who are comfortable with recent IR35 changes, ensuring you are not penalised for a legitimate change in your working arrangements.
I was turned down by my bank. Can Broadbench still help?
Yes. High-street lenders frequently decline contractor applications because their standard affordability models are not designed for contract income. Specialist lenders assess contractor income differently and are far more likely to approve applications that a high-street bank would decline. Being turned down by your bank does not affect your ability to apply with a specialist lender, and Broadbench will identify the most appropriate lender for your situation.
Do I need a large deposit as a contractor?
Not necessarily. Contractors with a strong contracting history and a current contract in place can access mortgages with deposits as low as 5–10%, subject to lender criteria. A larger deposit will typically unlock better rates and a wider choice of lenders, but it is not a prerequisite.
Ready to get your mortgage application moving?
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