Mortgages for IT Contractors
Speak to an Expert Advisor
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
21.08.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
21.08.2024
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 |
Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Get expert advice immediately if…
- You need to borrow more than 4.5 times your annual income
- You are only using one income on your application
- You earn income through sources such as Benefits, Commission or Rental income
- You consider yourself to be on ‘low’ income
If one or more of the above apply to you, it’s important to get expert advice before making an application. The right broker can help maximise your chances of approval based on your circumstance.
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
- Maintain Your Financial Records: Keep your accounts up to date and ensure your paperwork reflects your income accurately.
- Build a Healthy Deposit: The more you can put down initially, the better your mortgage rate options.
- Understand Your Borrowing Capacity: Know how lenders will view your contract income and how it affects how much you can borrow.
- Work With a Specialist Broker: Leverage their expertise to find a lender that understands the contracting world.
- Prepare for Scrutiny: Be ready for a thorough check of your financial stability and history of contracting.
Today’s best buy mortgages
Latest mortgage best buys
Based on a mortgage of £300,000 at 75% LTV and 25 years
| Speak with Us | Interest Rate | Mortgage Type | Monthly Repayment Amount | Total Fees | Max LTV |
|---|---|---|---|---|---|
 | 3.79% | Fixed | £1,174 | £30 | 75% |
| 4.09% | Fixed | £1,198 | £0 | 75% |
| 4.12% | Fixed | £1,210 | £1,499 | 75% |
| 4.24% | Fixed | £1,224 | £1,025 | 75% |
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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Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
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