Contractor Joint Mortgage
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Contractor Joint Mortgage (Part 1)
James Best explains how a joint mortgage works if you are a contractor. Episode one of two, recorded in July 2025.
How does being a contractor affect your eligibility for a joint mortgage?
Being a contractor can change how a lender will interpret your income and what evidence is required. The reason is that there are so many different types of contractors, and they are paid in a variety of different ways. Finding the most suitable solution can be a bit tricky – even for us brokers.
I would always recommend speaking to a mortgage expert so we can gain an understanding of your situation. Then we’ll know exactly how to help you and what evidence is required.
I’m afraid it isn’t a one-size-fits-all for contractors, because what’s required and what you’re eligible for will vary. But the good news is you can access the same deals as a non-contractor. You’re not excluded from anything.
What documentation is typically required for contractors applying for a joint mortgage?
We would need copies of your current contracts. We need to know how long that contract has been in effect for, how long is left and if it will be renewed. If you’ve got the renewal terms through, we would need those too.
We also need to know the nature of your work and your experience within that field. It’s just about understanding your track history within your line of work. Are you an experienced contractor or is this your first contract?
Are there any specific requirements or restrictions for contractors considering a joint mortgage?
We would need the same information for both contractors. Everything is double-counted. Two contractors on a joint application will be viewed differently from two permanent employees, or if just one person is employed.
It may mean we need double the income evidence to get your mortgage through. For a contractor that may not be as straightforward as for someone that’s employed – as they can just show their latest payslip.
But once we understand your circumstances, that information should be readily available.
To a mortgage lender, your contract is the same as them looking at a payslip. I do lots of mortgages for clients that are contractors, and by understanding your circumstances I can place your mortgage with the most suitable provider.
We generally don’t run into too many problems. The good news is that certain lenders are receptive and well set up to deal with contractors. They just need to know all the details, which we go through with you.
How can I improve my chances of being approved for a joint mortgage as a contractor?
Speak to a mortgage expert with experience in these types of cases. A knowledgeable broker is worth their weight in gold – there are many lenders and many different rules that change often. But we won’t have much difficulty in navigating that complex landscape for you.
Preparation is key. Aim to have all your work history up to date, with your current contract plus previous and future ones. Basically, we need to look at your contractor work over the last couple of years or so. It will help us quickly understand your circumstances so we can go to the right lender for your mortgage application.
Can contractors include their spouse or partner in a joint mortgage application?
Absolutely. It’s treated the same way as for a couple who are both employed. Getting a mortgage as a couple can be beneficial because your household expenditure is shared between the both of you.
If two contractors from separate households apply for a mortgage, the expenditure of each household is included with that. It could be an advantage doing it jointly because of how that’s taken into consideration when looking at affordability.
Are there any additional considerations for contractors for a joint mortgage compared to employed individuals?
We would need sight of the current contract you’re on, any future contracts and any historic ones, depending on how long you’ve been contracting. With the employed, typically we don’t go that far back because they’re on permanent contracts.
Also, how you’re paid is important. There is a marked difference between a day rate contractor versus a contractor within the Construction Industry Scheme or a contractor working on a self-employed basis.
Knowing which of those scenarios is applicable to you will certainly help us to arrange your mortgage.
What are the advantages and disadvantages of applying for a joint mortgage as a contractor?
It’s not much of a disadvantage, really, but we will need more information and paperwork from you. It may take more effort for you to get that information together compared to an employee that could just provide one payslip.
Lenders do go into more depth checking things out. But once they have a good level of understanding, they will deal with you very much the same as someone who is permanently employed.
A big advantage is flexibility. I’ve had numerous cases where I’ve been able to obtain a higher mortgage for certain contractors. A typical example is someone on a day rate, as some lenders interpret that differently – they won’t just look at your self-employed year-end figures.
CIS contractors are a huge one, too. Anyone that subcontracts within the Construction Industry Scheme essentially enjoys two different options. Lenders can look at your payslips from the subcontractor, taking the gross figures on those. That’s likely to be much higher than your self-employed figures at the end of the year.
I’ve done lots of CIS clients’ mortgages and they’ve been able to achieve much higher mortgages than with just that self-employed information. Those little niches are useful to know, and can be advantageous in getting a higher mortgage and potentially buying a more expensive home.
How can contractors navigate potential challenges or obstacles when applying for a joint mortgage?
Just get in touch with a knowledgeable professional, and be ready to discuss your current and historic work circumstances. That helps us gain a complete understanding of your situation and be best informed about your options.
A good, experienced broker will help you explore your options and explain everything. I’m sure it will be easier than you might expect.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
Speak To an Expert
Come on in and be quite forward with what you’re after – just be very honest with your mortgage broker. It’s good to make sure that we know absolutely everything about you. That way we can’t be blindsided by a lender. An open book policy is very good when coming to see your mortgage broker.
Contractor Joint Mortgage (Part 2)
James Best returns to continue the conversation on joint mortgages for contractors. Episode two of two, recorded in July 2025.
What factors do lenders take into account when assessing the affordability of a joint mortgage for a contractor?
Typically the income is taken from the current contract, plus an assessment of your commitments. Lenders exclude certain things when working out the maximum loan, such as loans and credit cards.
That’s the same across the board – there’s no difference if you’re a contractor. They would want to look at your current contract and any future contracts if they are being renewed.
They’ll ask about when your current contract started and if it has been renewed since. Lenders also want to know how long you’ve worked in the same line of work, to get an idea of your experience within the industry.
That’s also taken into consideration alongside the income and commitments as part of the affordability calculations.
Are there specific types of joint mortgage products for contractors?
Not really. Some lenders may have slightly different products for the self-employed, but these vary and are very ad hoc.
The good news is that the majority of mortgage deals are available to contractors, the same as for everybody else. You’re not excluded from mortgage deals as a contractor.
Can contractors benefit from any government schemes or initiatives when applying for a joint mortgage?
Absolutely. The answer is pretty much the same. Most current government schemes include contractors just like everybody else. You’re not excluded from any schemes that are present at the moment.
What should contractors know about the income assessment process for a joint mortgage application?
They’ll look at the income received on the current contract. One difference compared with someone employed on a permanent contract is that their holiday pay is included within their basic salary. If you’re self-employed as a contractor, you don’t typically get holiday pay.
As such, some lenders would pro rata your annual salary and typically take sort of 46 to 48 weeks’ worth of income. That allows time for a holiday. They feel it’s a bit more of an accurate representation of what your income is based on the figure from your contract.
How does employment history for contractors impact the likelihood of being approved for a joint mortgage?
It is a bit more complex than for someone that’s employed permanently. You often need more of a track history of either contracting or experience within your industry.
It’s not unusual, for example, for an employed IT expert to move onto their first fixed rate contract, and that should be acceptable to a mortgage lender, subject to their usual T&Cs. They just look in more detail at the work that you have done historically.
The longer you’ve worked within an industry, whether employed, fixed rate contracting or self-employed, the greater the chance we have of finding suitable terms for you from a mortgage lender.
Can contractors include income from multiple sources in a joint mortgage application?
Yes, you can. If there are multiple sources of income, the lender will sense check how long these multiple sources of income have been in place. Perhaps you do different roles for different companies – the lender would check they are sustainable for the term of the mortgage.
If you worked for one company for three days a week and the other for two, that’s likely to be accepted. The longer you’ve done both those roles simultaneously, the better.
If you’ve just started a new role in addition to the other roles, that can cause complications. The lender doesn’t have much history of you doing those multiple roles simultaneously.
They would check whether all of those hours added up to something crazy like 60 or 70 hours a week. They need to be responsible in making sure that this level of work and income will be sustainable over the whole term of the mortgage.
But multiple sources of income can be considered, providing they are sustainable and you’ve done them for at least six to 12 months. With a track record, the lender will be comfortable that the mortgage is affordable.
I’m a contractor with a bad credit history. How will that affect a joint mortgage application?
Obviously bad credit is not ideal, but it doesn’t necessarily mean all the lenders’ doors will be closed to you. The important thing is to get a copy of your full credit report and see exactly what information is held about you from the different credit reference agencies.
First of all, make sure that the details are correct. Secondly, speak to a knowledgeable mortgage professional to make them aware of what’s happened. Explain any difficulties you’ve had, and we will advise you on the next steps.
The good news is that lots of lenders will consider applications from clients with historically bad credit. We do lots of mortgages for clients who have had these hiccups in the past. It just takes a little bit more work.
Just be amenable to talking about those circumstances, because we need to understand what caused them and what’s happened since. If there was a hiccup on the credit file three years ago but your credit has been brilliant since, that will certainly work in your favour.
The worst case scenario with bad credit is that we can’t help you at this stage. Even then, we’ll give you very specific guidance as to what you need to do next. Then, in three, six or 12 months, you will be in a position where we can consider you. That applies to everybody, not just contractors.
How else can a mortgage broker help here?
Just get in touch with us or another experienced broker. We’ve dealt with many clients in a similar situation to you, and once we understand your specific circumstances, we’ll be able to help you.
We’ll give you that peace of mind and assurance that we will find you a suitable mortgage deal. With a mortgage being the largest financial commitment you’re likely to have in your lifetime, it’s so important to get the right advice.
Hopefully I’ve done enough to encourage you to speak to us, so we can help you through your mortgage journey.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.