Contractor Mortgage Bad Credit

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Contractor Mortgage Bad Credit – a guide 

Can I Get a Contractor Mortgage With Bad Credit?

Although possible, it can be substantially difficult to secure a mortgage if you are both a Contractor and have a poor credit score. The severity of your credit issue will have a huge impact on this ability, however, as the more distant your credit issues, the better your chance of being able to obtain a mortgage offer.

Similarly Contractors with more stable and established history in their chosen role and industry, will have an improved chance of finding a competitive mortgage, compared to a new Contractor.

For those in these circumstances, a growing number of specialist Mortgage Lenders in the UK are beginning to consider Contract workers with bad credit scores. Mortgage Brokers, like ourselves can be very beneficial to help those with adverse credit and to find a lender with criteria that you are able to meet.

How Can a Mortgage Broker Help?

When you try to get a mortgage with a poor credit history, particularly if you are also a Contractor, it can be hugely beneficial to have the support of a Mortgage Broker who is well accustomed to the wide range of different lender criterias. Given that you could have any number of income types and a broad spectrum of issues on your credit report, finding a suitable lender is certainly possible, but your options will be quite limited.

To prevent you from the frustration of numerous failed applications, a broker like ourselves, here at Total Home Loans, has access to a plethora of lenders, and we will quickly be able to determine the likelihood that each will accept you. So, whether you Contract on a day-rate, are a Limited Company Director, or are trading under an Umbrella Company, we can find a lender who matches your circumstances. We also know which lenders, who specialise in the bad credit niche, are likely to accept Contractors.

Speak To An Expert

Total Home Loans are a national mortgage broker with whole of market access. Their combined experience of over 50 years in the mortgage and financial services industry means they have an enviable reputation and one which makes them well-placed to find the most suitable mortgage solution for you.

Why is the deposit amount critical if I have bad credit?

As Mortgage Lenders will consider you to be a high risk borrower, they will need to feel confident that the level of risk involved with lending to you is acceptable for them to take on. A deposit’s purpose is to mitigate some of the risk involved in lending to you. Therefore the less stable your income and credit file appears to the lender, the larger deposit they will need to mitigate their risk.

The amount of deposit necessary will be closely linked to your specific circumstances. For example, an established Contractor with one default over twelve months old, may achieve a 90% Loan to Value mortgage, therefore needing a 10% deposit. Higher risk borrowers typically have to provide a 15-20% deposit. 

What if I am declined for a Contractor mortgage?

If you’re declined at the current time, your chance of being accepted will generally improve over time. We can help you to decide whether now is a good time to apply, taking into consideration the likelihood of rejection, as multiple mortgage applications can further impact your credit score, making future applications even more difficult

How can I Improve my chances of getting my Contractor mortgage application accepted? 

If your employment or credit score is affecting your ability to get a mortgage, there are things you can do to help improve your chances over time, including only approaching specialist bad lenders for people with bad credit scores. Time itself can help reduce the impact of credit problems and increase the length of your working history. You can also try the following tips to help speed up the process

  • Try to offer a larger deposit to mitigate some of the risk
  • Focus on improving your credit rating by paying bills on time and repaying the debts that caused your credit issue
  • Provide guaranteed future contracts from clients
  • Avoid gaps between contracts – including holidays if possible
  • Applying jointly with someone else can improve your chances
  • A range of guarantor mortgage options may be available to you

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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Kevin Franklin

May 31, 2022


Very professional company. I’m 63 Years old and was having trouble sorting any kind of mortgage but Mark from Total Home Loans saved the day. please do not hesitate to contact them first as I wasted a lot of time hunting around for others.

Well done Mark and the team, the number 1 company.

Lolita Cooksley

May 16, 2022


Very professional fast efficient service and really caring and genuine people to deal with. They have helped us with our mortgage twice and been great both times.

We wouldn’t hesitate to use them again in future.

Karin Salmons

May 16, 2022


Thanks to Total Home Loans and their patience, care and understanding, along with their skill and kindness, my partner and myself are now home owners something I never thought would happen,

Please even if you think it’s not something you can achieve give Total Home Loans a call they will work for you.

Again thank you all at Total Homes Loans.

Arfan Ramzan

May 5, 2022


Great service, I tried so many brokers but no one could help but Total Home Loans were the only ones who found me a lender. It was really hard to find someone, I went to 8 brokers all found online with there so called promising words trying to bring customers in still no good for me but Total Home Loans got the job done, excellent service, will recommend 💯💯💯 and there was no fee till all applications was complete unlike some brokers.

Steve Greenfield

May 4, 2022


Very happy with my experience with Total Home Loans. Very professional company, were always quick to reply and action whatever was needed.

Will definitely be back! I’ve already recommended them to a friend and they had the same positive experience that I had.

Why Total Home Loans?


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