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Secret tips to sell and move in before Christmas
16 November / 2018

How to avoid buyer’s remorse
15 November / 2018

Government sets eyes on AML violations in the property industry
1 November / 2018

The Guild comments on the Autumn Budget
30 October / 2018

What are the 10 biggest turn-offs for home buyers?
25 October / 2018

Should you buy, sell or trade up before Brexit?
19 October / 2018

Splashing Out: Bathroom Bliss
18 October / 2018

For sale: Five of the best gorgeous gardens
18 October / 2018

What to avoid when buying a property for the first time
28 September / 2018

The Guild launch event in Northern Ireland a huge success
27 September / 2018

An interview with Wilsons Auctions
20 September / 2018

Northern Ireland - The happiest place to live in the UK
11 September / 2018

Competition: Win a luxury hamper from Regency Hampers
7 September / 2018

The Guild expands to Northern Ireland
4 September / 2018

VIDEO: How to get more property viewings
24 July / 2018

Which room convinces you to buy?
23 July / 2018

VIDEO: How to take the stress out of moving
11 July / 2018

VIDEO: Top tips to renovate a property
4 July / 2018

The Guild launches in Northern Ireland
28 June / 2018

Win a birthday cake to celebrate The Guild’s 25th anniversary
22 June / 2018

Video: How to upgrade your home for less
14 June / 2018

Video: How to turn your homes weaknesses into strengths
7 June / 2018

Video: Can your garden add value to your property?
31 May / 2018

Video: How to know when it's time to sell your home
24 May / 2018

Video: How can you become an estate agent?
18 May / 2018

Video: How to buy land and build your dream home
11 May / 2018

How to take the stress out of moving house
27 April / 2018

How to upgrade your home for less
24 April / 2018

Video: How to spot an overpriced home
10 April / 2018

Video: Upsizing in 2018
6 April / 2018

The Best British Villages You've Never Heard Of
4 April / 2018

Video: How to homestage your property to sell
4 April / 2018

Renovating a derelict home
28 March / 2018

How to know when it's time to put your home on the market
16 March / 2018

The Guild's reaction to the Spring Statement 2018
14 March / 2018

What are the Benefits of Downsizing in 2018?
13 March / 2018

Spring Statement wish list
9 March / 2018

Video: Sell Your Home Through the Modern Method of Auction
9 March / 2018

Property Predictions for the Housing Market in 2018
7 March / 2018

Top 10 ways to add value to your garden
6 March / 2018

Secret tips to sell and move in before Christmas
19 November / 2018

VIDEO: How to get more property viewings
24 July / 2018

VIDEO: How to take the stress out of moving
26 October / 2018

How to take the stress out of moving house
20 June / 2018

Video: How to homestage your property to sell
4 April / 2018

How to know when it's time to put your home on the market
22 May / 2018

Property Predictions for the Housing Market in 2018
21 June / 2018

Top 10 ways to add value to your garden
21 June / 2018

How to avoid buyer’s remorse
19 November / 2018

What are the 10 biggest turn-offs for home buyers?
25 October / 2018

Splashing Out: Bathroom Bliss
18 October / 2018

For sale: Five of the best gorgeous gardens
18 October / 2018

What to avoid when buying a property for the first time
26 October / 2018

Which room convinces you to buy?
9 August / 2018

VIDEO: Top tips to renovate a property
4 July / 2018

Video: How to turn your homes weaknesses into strengths
21 June / 2018

Video: How to know when it's time to sell your home
24 May / 2018

How to upgrade your home for less
24 April / 2018

Video: How to spot an overpriced home
22 May / 2018

Video: Upsizing in 2018
6 April / 2018

Renovating a derelict home
28 March / 2018

Video: Sell Your Home Through the Modern Method of Auction
21 June / 2018

Government sets eyes on AML violations in the property industry
1 November / 2018

The Guild comments on the Autumn Budget
30 October / 2018

The Guild launch event in Northern Ireland a huge success
27 September / 2018

An interview with Wilsons Auctions
21 September / 2018

Competition: Win a luxury hamper from Regency Hampers
15 September / 2018

The Guild expands to Northern Ireland
4 September / 2018

The Guild launches in Northern Ireland
29 June / 2018

Win a birthday cake to celebrate The Guild’s 25th anniversary
22 June / 2018

The Guild's reaction to the Spring Statement 2018
14 March / 2018

Spring Statement wish list
9 March / 2018

Should you buy, sell or trade up before Brexit?
19 October / 2018

Northern Ireland - The happiest place to live in the UK
11 September / 2018

The Best British Villages You've Never Heard Of
4 May / 2018

Video: How to upgrade your home for less
14 June / 2018

Video: Can your garden add value to your property?
31 May / 2018

Video: How can you become an estate agent?
18 May / 2018

Video: How to buy land and build your dream home
11 May / 2018

What are the Benefits of Downsizing in 2018?
16 March / 2018

Mortgages for the self-employed and contractors

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Mortgages for the self-employed and contractors

Buying The Guild 12th January 2017

Contractors and people who are self-employed can face additional challenges when securing a mortgage, which may sometimes cause delays during the property buying process.

Around 22% of the UK workforce are now self-employed or contractors, according to the Department for Business, Innovation and Skill (BIS), but many of them worry that this will work against them when they apply for a mortgage.



Recent research revealed that just over one in five contractors and self-employed believe that the fact they aren’t in full-time employment has made it harder for them to get a mortgage, with almost a third claiming that lenders see them as a bigger risk.

More than one in ten (16%) claim that they found the process of applying for a mortgage difficult, with over half of those who have been self-employed between one and ten years preferring to get their mortgage via a broker who can help steer them through the process.

The main obstacles the self-employed and contractors often face when applying for a mortgage are:

- No more self-certification mortgages. The self-employed and contractors used to be able to tell lenders how much they earned without having to provide any proof, but following the Mortgage Market Review in April 2014, lenders now require evidence of income for all applications. 

- An irregular income. Often the self-employed and contractors earn a different amount each month, but lenders usually want to see a steady income that doesn’t fluctuate over time.

- Some work contracts might only last for a few weeks or a month, which makes lenders nervous that this could result in missed mortgage payments in future when contracts finish.

Despite these challenges, most lenders are willing to provide mortgages to the self-employed and contractors, and some have adapted their lending criteria so that they can better cater for this group.

That said, the more years of accounts they have showing a consistent or rising income, the better their chances of being accepted for a mortgage. Typically lenders will want to see at least 2 years’ worth of accounts.

It will also help if they can prove that they have plenty of work going forwards, or if they will be working as a contractor in an industry that they previously worked full-time in.

Having a substantial deposit in place can also be a real advantage for self-employed or contractor homebuyers, because it reduces the risk for lenders.

Often an intermediary who has experience finding mortgages for the self-employed can advise which lenders tend to look more favourably on applications for contractors or people who work for themselves, which can help speed things along. 


If you are considering an offset mortgage or simply need mortgage advice, then please speak to the Guild Mortgage Service provided by fee free L&C Mortgages.

You can contact L&C mortgages on: 0800 073 1945