Remortgaging Tips for Contractors

Remortgaging Tips for Contractors

Blog Article

As a contractor, remortgaging can be a smart move—whether you’re looking to reduce your monthly payments, release equity, or secure a better rate. But since your income isn’t always straightforward, it’s important to approach remortgaging with the right strategy.

Here are some top tips to make the process smooth and successful.

1. Start Early—3 to 6 Months Before Your Deal Ends
Don’t wait until your current mortgage deal is about to expire. Start exploring your options at least 3–6 months early to avoid rolling onto your lender’s higher standard variable rate (SVR).

This gives you time to:

Review your income documents

Compare deals

Gather necessary paperwork

2. Know How Your Income Will Be Assessed
As a contractor, your lender may assess your income based on:

Your current contract rate

Average earnings over 12–24 months (if you're self-employed)

Or a combination of payslips and umbrella income (if applicable)

Specialist lenders often use your daily or hourly rate to calculate your borrowing potential, which can lead to better offers.

3. Use a Contractor-Friendly Broker
Many mainstream lenders aren’t equipped to properly assess contractor income. A specialist broker knows which lenders:

Accept contract-based income

Offer flexible criteria for limited company or umbrella workers

Are open to self-employed or bad credit applicants

A contractor-focused broker can save you time and get you more competitive rates.

4. Check Your Credit and Documents
Before you apply:

Review your credit score

Gather bank statements, contracts, SA302s, and payslips (if applicable)

Make sure your contract history is consistent

Having everything ready helps you move quickly and shows lenders you're organised and financially stable.

Final Thoughts
Remortgaging doesn’t have to be complicated for contractors. With the right planning, lender choice, and broker, you can lock in a better deal that suits your lifestyle and income structure.

At Contractor Mortgage Solutions, we specialise in helping contractors remortgage with confidence—so you don’t miss out on the best possible terms.