A Simple Guide to Getting a Contractor Mortgage

Securing a mortgage is never easy – and even less so if you’ve recently switched from full-time employment to contracting, freelancing or self-employment. So, working with our recommended Mortgage Broker, CMME, we have developed this simple guide which will help to make it as seamless as possible.

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Mortgage guide for the self-employed

We outline some important aspects to remember before applying for a mortgage, as well as what to expect during the process:

Keep a copy of your contract

Make sure you have a copy of your signed contract to hand which is totally up to date.

This needs to clearly state the length of your contract, and your current contract rate.

You’ll also need some ID, such as your passport and your driving licence, plus bank statements – both business and personal - and any other information, like utility bills for example, that could be relevant to your mortgage application.

Contractor mortgages made simple: choosing the right contractor mortgage specialist

Assuming you choose CMME, they will help you to select a lender suited to your individual circumstances, as they have negotiated specialist mortgage underwriting terms for contractors with a number of large High Street lenders.

This enables them to arrange a mortgage based on the contract you have, rather than on the number of years you have been working as a contractor. This will help to process your application quickly and without hassle.

Get a lender who understands your circumstances

The fact that CMME is managing your application means that the lender will treat you seriously and will understand that independent professionals are not higher risk.

As opposed to trying to convince inexperienced bank employees, who only really understand the world of employment, that your income is valid for mortgage funding.

Agreement in principle

Once you have chosen a lender, CMME will help you to secure an ‘agreement in principle’ from them, which will state exactly how much the lender is happy to lend you.

It’s really useful to know this before you start house hunting so that you know what you can afford to look at, or how much discount you need to negotiate!


Drawing up contracts

As soon as you have found a house, made an offer and it has been accepted, CMME will immediately set everything in action and at that point will also need to instruct a solicitor to act on your behalf.

The solicitor will do all of the necessary ‘chasing’ of the lender and will make sure that the required surveys and searches are carried out on time, and then processed by your mortgage company.

The solicitor will also draw up contracts and then liaise with the seller’s solicitor on your behalf, to agree on dates for exchange of contracts and completion.

Getting your move-in date

Once an exchange date has been agreed, your solicitor will call CMME, who will then chase your lender to ensure that the money is transferred in time for your completion date.

And after completion, all you have to do is move in. Good luck!

Caroola Ltd is an Introducer Appointed Representative of CMME. CMME is a trading name of CMME Mortgages and Protection Limited. Authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 04886692. Registered Office: 2 Glass Wharf, Bristol, Somerset, BS2 0FR. Please be aware that Commercial Mortgages, Overseas Mortgages and some Buy To Let Mortgages are not regulated by the Financial Conduct Authority. Calls may be recorded for training and security purposes and to improve the quality of our services. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Easy mortgage guides

You may find the below guides useful:

Contractor Mortgage Calculator Assessor
Contractor Mortgage FAQs, Myths and Facts
Contractor Mortgages
Contractor Self-Certified Mortgages
Mortgage Tips for Contractors
Contractor Mortgage Calculator – Repayments

Financial Advice Hub

You may also find our other contractor finance guides and calculators helpful:

Visit our Financial Guidance hub

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Interested in finding out more? Speak with our expert Sales Team to see how we can work together.

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