Contractor Mortgages vs Self-Employed Mortgages: What’s the Difference?

Contractor Mortgages vs Self-Employed Mortgages: What’s the Difference?

Blog Article

If you're a contractor, you might wonder whether you fall under the self-employed mortgage category. While there are similarities, contractor mortgages are assessed differently — and knowing the distinction can help you access better deals.

Are Contractors Considered Self-Employed?
Technically, yes — contractors are usually classed as self-employed, especially if they operate through a limited company or as a sole trader. However, the way lenders assess contractors can differ from how they assess traditional self-employed applicants.

How Self-Employed Mortgages Work
For self-employed borrowers (like business owners or freelancers), most lenders will look at:

2–3 years of tax returns or SA302s

Annual accounts prepared by an accountant

Average profits over a few years

This can make it harder for newer contractors or those with fluctuating income.

How Contractor Mortgages Are Different
With contractor mortgages, certain lenders use your current contract, day rate, and industry experience to assess affordability. This allows contractors to:

Apply with just 6–12 months of experience

Avoid being penalised for short trading history

Often borrow more than under a traditional self-employed model

Why Work with a Specialist Broker?
At Contractor Mortgage Solutions, we know which lenders take a flexible approach with contractors. Whether you’re IT-based, in construction, or working in healthcare, we’ll help present your income clearly and match you with the right deal.

Get Mortgage Advice Tailored to Contractors
Understanding the difference between contractor and self-employed mortgages is key to finding the right solution. Don’t settle for a generic mortgage route — let us tailor it to your situation.

Speak to Contractor Mortgage Solutions today and secure a mortgage that recognises your true income and career path.