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Contractor Joint Mortgage (Part 1)

Gary Clarke explains how a joint mortgage works if you are a contractor. Episode one of two, recorded in April 2025.

How does being a contractor affect your eligibility for a joint mortgage?

Being a contractor won’t stop you getting a mortgage, per se. You’ll still need to do the basic things like pass a credit score and prove your identity and income. You’ll do that by providing bank statements and proof of deposit.

Whether you’ll be able to get the mortgage that you want will depend partly on the lender, as they all have different policies for contractors. It also depends on the type of contractor you are.

For example, a Construction Industry Scheme (CIS) contractor will be treated one way whereas an IT contractor with a day rate might be viewed slightly differently.

Our job is to find the best lender that fits with your background, can lend the money that you need and offers the best value for money for you.

What documentation is typically required for contractors applying for a joint mortgage?

There are the standard things such as proof of ID – typically your passport – and proof of address via a driving licence or utility bill dated within the last three months. You would also provide three months’ bank statements and proof of deposit – again, usually bank statements for the account where that’s held.

As a contractor, your proof of income will depend on the type of contractor you are. Typically it would be a copy of your contract for up to 12 months or beyond, to show consistency.

You might be required to provide payslips – especially if you’re a CIS contractor – or to prove self-employment, if that’s what the lender requires. The more we know about those circumstances, the better we’ll be able to guide you.

Are there any specific requirements or restrictions for contractors considering a joint mortgage?

Lenders will use different ways to assess you. There are no specific requirements, but the more we know, the better we can help. Even if you think something might not necessarily seem relevant, it’s always worth mentioning it – let us find out whether it makes a difference.

How can I improve my chances of being approved for a joint mortgage as a contractor?

We recommend keeping good records of your contracting history. The more we know about that history, the better we can help. Gaps aren’t necessarily a problem, but they do require explanation, depending on the size. By understanding those circumstances, we’ll be able to guide you.

Can contractors include their spouse or partner in a joint mortgage application?

Absolutely. As with any application, you’ll each still need to pass a credit score. Your incomes get taken into account, and your employment types will determine what paperwork we need to prove that.

We also need to make sure each person is who they say they are, just like any other applicant. And, of course, your joint borrowing power will be assessed in deciding what that maximum loan will be.

Are there any additional considerations for contractors when applying for a joint mortgage compared to employed individuals?

It’s not specific to contractors, but cheapest isn’t always best. Of course, we want to get you the cheapest possible mortgage, with the least amount of stress. When you’re buying a property you want things to move quickly, and we want to get you the right deal.

That deal may not always be the cheapest. If a lender has historically made things tougher for contractors, we may consider another that may cost a little more, but takes the stress out of that application process.

What are the advantages and disadvantages of applying for a joint mortgage as a contractor?

There aren’t any specific advantages or disadvantages as a contractor. But all lenders are different in how they assess things, and it will depend entirely on your circumstances as to how much you can borrow.

It’s not just about your income, but also your outgoings, especially how much you’re spending on credit cards, car finance, personal loans and other contractually obligated payments.

All of that will have an impact depending on the lender. We may go to a certain lender depending on the type of contracting you’re doing, to maximise what you can borrow. Once we’ve narrowed that down, we’ll then find the cheapest lender for you.

How can contractors navigate potential challenges or obstacles when applying for a joint mortgage?

I’d just reiterate the importance of good record keeping. As with all things, the more we know, the better that we can help.

Some things might feel inconsequential to you as a potential purchaser. But for us, it might be what decides us on choosing one lender over another. I wouldn’t want to speculate on what those might be – but if it feels like something that you should mention, then please do. If it turns out to be inconsequential you haven’t lost anything, but if it does have an impact, it ensures you’ll get the best possible advice.

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Contractor Joint Mortgage (Part 2)

Continuing the conversation on joint mortgages for contractors with Gary Clarke. Episode two of two, recorded in April 2025.

What factors do lenders take into account when assessing the affordability of a joint mortgage for a contractor?

There are the normal things that lenders take into account – income and the expenditure. But factors that lenders take into account specifically for contractors include the type of contractor you are.

For example, a day rate IT contractor is treated very differently to a Construction Industry Scheme (CIS) contractor. They might also be treated differently to somebody on a fixed term contract.

The more we know about that contracting situation, the better we can guide you around the maze of mortgages and find the right lender for your circumstances.

Are there any specific types of joint mortgage products designed for contractors?

No. It really does come down to the lender’s criteria. But without doubt, certain lenders are far more contractor friendly than others. Talking to us will guide you to the right one for your circumstances.

Can contractors benefit from any government schemes or initiatives when applying for a joint mortgage?

It’s the same schemes that anyone can apply for – such as the First Home scheme, Deposit Unlock, 5% deposits, etc. There aren’t any special schemes specifically for contractors.

The lenders available for those schemes will determine the borrowing power that an individual has.

What should contractors know about the income assessment process for a joint mortgage application?

Each individual is assessed based on a lender’s contractor criteria. It’s about us working with you to find a lender that will best reflect your financial circumstances, depending on the type of contractor that you are.

In terms of the actual process, we will need your most up-to-date contract, and potentially other contracts covering 12 months – or perhaps longer.

Lenders may use your day rate to assess your income or take an average of your pay slips over three, six or 12 months. The better your record keeping and the more information you can provide us with, the better we’re going to be able to help. We want to find the least stressful, quickest route to get you into your new home.

How does employment history for contractors impact the likelihood of being approved for a joint mortgage?

What’s really important here is to be able to demonstrate consistency. Lenders like to feel that their risks are being reduced. If you’ve got a good track record of contracting over two years or more, ultimately that’s going to stand you in better stead.

To be approved, you need to be credit worthy. We assess your income and outgoings to make sure that the loan is going to be affordable.

We’ll work with you to find the right lender, not just to give you the right amount of money to borrow, but also the best overall value.

Can applicants who are contractors include income from multiple sources in a joint mortgage application?

Absolutely. The more we know the better we can help. If you do have multiple income sources, let us know what they are.

We can’t promise that every lender will take every single income source into account, but if we know what you want to borrow and how your income is made up, we can work out which lender will be best. Then, ultimately, you can buy that house or remortgage an existing property.

I’m a contractor with a bad credit history. How will that affect a joint mortgage application?

This is an adverse credit question rather than a specific contractor question. There are really important things to take into account here – what event has been registered, whether it’s a county court judgment, a default or a late payment, the value of that, how frequently it might have occurred and whether the account has now been brought up to date.

That will all have an impact on the rate you pay, how much deposit you might be required to put in and ultimately what the cost will be. When we combine contractor mortgages with adverse credit, you might find that the options are a little narrower.

As with all things, the more we know, the better we can try and help. Some specialist lenders have some really good contractor criteria. If you tell us as much as you can about, we will find the best lender for your circumstances.

How can a mortgage broker help here? Any final thoughts?

Remember that a mortgage broker is here to be your best friend and to guide you through the maze. We do all the hard yards so you don’t have to.

By going directly to a bank, you have to fit that lender’s criteria. You can’t look at multiple different options by going direct.

Ultimately, we want to get you the best possible deal for your circumstances. Otherwise, you will spend a lot of time on the internet doing research, then checking whether your research is correct. Unfortunately the web is a place full of half-truths and misinformation at times. We’re here to cut through all that for you

We’ll find the lender that will lend you the money at the best possible cost. We make sure that you can move into your house and, with the right level of planning, to give you the best chance of remaining there.