We’re not going to lie, being treated as a contractor in the eyes of a lender is ideal. Even if you’re on a fixed-term contract or a day rate, you may still be eligible.
A small number of mortgage lenders treat contractors as employees rather than as self-employed, and are willing to lend according to your day rate, rather then requiring two years’ worth of SA302s (the forms you get from HMRC to show your annual self-employed earnings). They’ll generally want to know some background information on how long you’ve been contracting and whether you’re in regular work. Being a contractor can make securing your mortgage simpler – and ensure you get a home you perhaps otherwise wouldn’t.. Your mortgage broker will be able to focus on what’s best for you.
Since the 2008 financial crisis, more and more people have found themselves working as contractors for varying terms of up to two years. (After two years you gain more rights as an employee.) In some fields, such as IT, being a contractor can be lucrative, with hefty day rates. But even if you’re not lucky enough to be earning big bucks, your mortgage broker can still help you use your contractor status to your advantage.