What Documents Do Contractors Need for a Mortgage?
What Documents Do Contractors Need for a Mortgage?
Blog Article
If you're a contractor applying for a mortgage, being prepared with the right documents can make or break your application. Unlike permanent employees, contractors must provide more detailed evidence of income and work history to prove affordability.
Here’s a checklist of the key documents lenders typically require from contractors.
1. Your Current Contract
This is the most important document. It should clearly state:
Your daily or hourly rate
Contract length and start/end dates
The name of your client or agency
Whether the contract is renewable or rolling
A strong, ongoing contract shows stability and reassures lenders.
2. Proof of Income
Depending on how you operate, you may need:
Payslips (if working through an umbrella company)
Limited company accounts (usually last 1–2 years)
Dividend vouchers and SA302s (from HMRC)
Bank statements showing regular income
Specialist lenders may use your contract rate to calculate annual income, rather than relying solely on tax returns.
3. Identification & Proof of Address
Standard documents such as:
Valid copyright or driving licence
Recent utility bill or copyright (dated within 3 months)
4. Business and Personal Bank Statements
Usually, you’ll need to supply:
3–6 months of business bank statements
3–6 months of personal bank statements
These help lenders assess how you manage your finances.
5. Tax Documents (if self-employed)
If you’ve been trading for a while, lenders may request:
SA302s
Tax year overviews
Company accounts
These are especially important if you're not being assessed on contract rate alone.
Final Thoughts
Having the right documents in place gives lenders confidence in your financial situation. Preparation is key—gathering these early can speed up the process and improve your chances of approval.
At Contractor Mortgage Solutions, we guide you through every step, ensuring your paperwork meets the expectations of contractor-friendly lenders.