First-time buyer contractor mortgages

Are you a contractor looking to buy your first home? Cleerly is here to help.

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First-time buyers

Purchasing your first house is one of life’s biggest milestones – it’s an exciting and memorable occasion. But it is stressful. There’s a lot to be done before you’re handed the keys; arranging a mortgage in principle, negotiating the right price, making an offer, appointing a solicitor – buying a house is almost akin to a full-time project.  

Thankfully, we’re here to help. For over 15 years, we’ve been assisting first-time buyer contractors with their mortgage applications. It means we have the expertise and the experience to help contractors from all manner of backgrounds. You could be a contractor trading via a Ltd company, contracting through an umbrella company or you could have just won your first contract! 

Get moving with Cleerly

Starting your mortgage journey with us is easy.

We just require a little bit of information about your contracting background and then you can receive mortgage quotes straight to your inbox.  

Or why not take a look at our mortgage calculator? It’s an easy-to-use tool that shows you mortgages you may be approved for based on a successful application. Just enter your property value, how much you wish to borrow, and how much you wish to pay back each month. Once you’ve found a mortgage you’d like to apply for, get in touch to kickstart your application process.  

Our consultants can talk you through your options and help you to create a comprehensive, self-explanatory mortgage application that puts you in the best position to be accepted by a lender.

Can a first-time buyer contractor get a mortgage? 

Yes, first-time buyer contractors can qualify for a mortgage. The process is a little more complicated than applying for a mortgage with a permanent contract, but it is certainly possible.  

We can help first time buyers who are:

  • Contractors trading via a Ltd company (even in your first year)
  • Day one contractors
  • Contractors using an umbrella company

If you’re struggling to navigate the complex field of first-time buyer contractor mortgages or you’ve been told by a bank or a broker that you don’t qualify for a mortgage, our team of specialist mortgage consultants are here to help.

We strive to make the process of applying for a mortgage as clear as possible – it’s our job to take the stress and the unknown out of buying your first home.

How do First-time buyer contractor mortgages work?

When dealing with contractors, high street lenders tend to look at Ltd company contractors as self-employed workers.

This means they look at accounts, including the salary you pay yourself and any dividends. For those contracting through an umbrella company, the lender may view you as employed, however the multiple ways in which the incomes are listed and deductions recorded cause confusion, resulting in only part of the income being taken into consideration.

Thankfully, going to a contract mortgage specialist means contractors have access to special terms through contract-based underwriting. Approval for a mortgage is decided based on gross contract value. That means if you have a day rate of £500, you could potentially borrow £600,000.

£500 x 5 days/week = £2,500

£2,500 x 48 weeks/year = £120,000

£120,000 x 5 (multiple to calculate affordability) = £600,000

Things you'll need to apply

What documents are required to secure a contractor mortgage?

There’s no need for accounts and no need for payslips. We simply work out how much, in theory, you would earn in a year according to your day rate and use that to negotiate rates and terms different to those offered by high street lenders. That said, we will need some proof of earnings, including:

  • Your CV
  • Your contract
  • Bank statements
  • ID and proof of right to live and work in the UK 


Help to Buy schemes

Questions answered

While the government’s Help-to-Buy scheme no longer exists, first-time buyer contractors can still put their Lifetime ISA savings towards a deposit on a house up to value of £450,000. 

The Shared Ownership scheme helps first time buyers – including contractors – to get on the property ladder that bit quicker. Instead of purchasing the whole property, a contractor can purchase a percentage share of the property – usually 25%, 50%, or 75%.  

Rather than raising a deposit against the entire value of a property, you only need to raise a deposit and qualify for a mortgage against the percentage of the property that you intend to own. You then pay a low monthly rent on the part of the property you don’t own.  

There are usually flexible staircasing options, which allow you to buy more of your property over time.  

Are you a first-time buyer looking for a contractor mortgage? 

Whether you’re an established contractor or are just starting out on your contracting journey, you’ll still have access to deposits as low as 5%.

You’ll also benefit from mortgage consultants who care. Our glowing 4.9 Trustpilot rating showcases how committed we are to being helpful, proactive, and transparent.

Borrow based on your annualised contract rate

Borrow up to five times your income

Borrow at the same rates as those who are permanently employed

What can you expect from our mortgage consultation service?

At Cleerly, we’re different. Our goal is to help you feel the excitement of buying a house for the very first time.   

We’ll take away as much of the stress as possible, and provide simple, clear advice that will help you to understand the entire home buying process – we believe that complex shouldn’t be complicated. 

Our consultants have scoured the market to find the best first-time buyer contractor mortgages – you can get an idea of the mortgages we’ve secured and discover mortgages that you could be eligible for based on your application by using our mortgage calculator

We partner with reputable lenders, some of whom offer exclusive products. It means that not only do you have the best chance of being accepted by a lender but also access to the best deals. 

To get the ball rolling, please feel free to call us on 02394 212912 or request a call back. Alternatively, take a few minutes tell us a little bit about your contracting background and receive contractor mortgage quotes straight to your inbox.  

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