Mortgages for Contract Workers

Written by Melanie Eastwood

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If you are a contract worker you might be feeling uncertain about how banks and building societies will view the temporary nature of your contract when it comes to getting a mortgage. You might have started making enquiries with your own bank and be confused or disappointed with the outcome. You might be at the peak of your earnings potential in a highly rewarding job but feeling out on a limb when it comes to your financial plans and owning a home or moving up the property ladder.

As if getting a mortgage isn’t daunting enough without the added uncertainty about what you tell your bank and how they will assess you for a mortgage. You might be worried that you will be looked upon less favourably than someone in a full time and permanent roll and this can sometimes be disheartening when your colleagues at work are buying property around you with their permanent contracts. Having been a contract worker myself during my financial services career before founding The Money Guardian I understand the wrestle with pursuing your career goals as a contract worker while needing to make firm plans when it comes to buying property. Particularly as being a contract worker with looming end dates of contracts can make it difficult to meet the requirements for signing a new lease if you find yourself needing to move to a new rented house. It can be a constant stress in the back of your mind.

You will be pleased to know that getting a mortgage as a Contract Worker, with the right support and advice from a Mortgage Adviser with experience in mortgages for Contract Workers can be both achievable and stress free.

There are differences between lenders in terms of how they assess your income as a contract worker from zero hours contracts to fixed term contracts, IT contracts, professional contracts, CIS workers, contracts through umbrella companies, rolling contracts and locum professionals. The key to success is usually helped along by experience in contract work and continuous employment in the same line of work as well as the remaining term of the contract. First Time contracts are not ideal from a mortgage lender perspective though a few will consider, particularly where there is a previous continuous history of employment in the same line of work. My motto at The Money Guardian is if anyone can get you the positive outcome, we can, and our kind words from clients prove that.

Trying to navigate the differences between lenders on your own as a Contract Worker can be time consuming and at times disheartening, you might even put off moving altogether. Speaking to a Whole of Market, independent Mortgage Adviser experienced in Contract Worker Mortgages at the start of your journey, can help you to secure the best mortgage for your circumstances quicker. This can make all the difference to securing your dream home as you will be able to access mortgages offering greater levels of borrowing, with lower deposits than you might have thought possible yourself.

The key to having a successful and enjoyable career in contract work and pursuing your aspirations to buy a home, is getting great advice from a Mortgage Adviser experienced in contract work, however early in your journey you are. I find it highly rewarding to work alongside a client for as long as it takes to make their financial goals a reality and get them in the home that their hard work deserves. Contract work doesn’t have to be a barrier to owning a home, whether alone or with a growing family, it’s never too early to start speaking to a Mortgage Adviser.

Your home is at risk of repossession if you do not keep with the repayments on your mortgage.

Melanie Eastwood is Director and Mortgage Adviser at The Money Guardian, founding the company in 2017 after a long and successful career in Financial Services. She is passionate about helping people achieving their goals when it comes to owning property or other financial aspirations. An activist at heart, Melanie tries to make a difference in her community where time allows and, in the past, has served as a local councillor, campaigning against cuts to the NHS and defending local green spaces, she has previously been a foster carer and is also the driving force behind an initiative working with local charities and school children planting trees in their town. The Money Guardian won the NatWest Hero Award in 2021 for its service to customers and the community, and has featured in The Times as Vouched For Top Rated Mortgage Advisers for 3 consecutive years.