Remortgaging for Contractors: What You Need to Know

Remortgaging for Contractors: What You Need to Know

Blog Article

Why Contractors Consider Remortgaging
Remortgaging means switching your current mortgage to a new deal—either with your existing lender or a new one. Contractors often consider remortgaging to secure a better rate, release equity, or adjust their mortgage terms as their financial situation evolves.

1. When to Remortgage
Contractors might benefit from remortgaging if:

Your current fixed deal is ending soon

You’re paying a high interest rate

You want to borrow more for home improvements or other needs

Your income or contract type has changed

By switching to a better deal, you could save hundreds or even thousands over the mortgage term.

2. Remortgage Challenges for Contractors
Contractors may face unique challenges when remortgaging. Traditional lenders might not understand your income structure—especially if you work through a limited company or have variable earnings. However, there are specialist lenders who focus on contractor mortgages and assess income based on your day rate or contract value.

3. What Documents You’ll Need
To remortgage smoothly, prepare key documents such as:

Your current contract or recent renewal

Bank statements (usually 3–6 months)

Tax returns or SA302s (if self-employed)

Company accounts (for limited company contractors)

A mortgage broker can help you gather the right documents and present them clearly to lenders.

4. Should You Use a Broker?
Yes. A broker specialising in contractor mortgages understands how to package your application and can connect you with lenders who offer the best remortgage deals for contractors.

Time to Review Your Mortgage?
If your current mortgage is coming to an end or you want to explore better terms, now is a great time to act.

Contact Contractor Mortgage Solutions
At Contractor Mortgage Solutions, we make remortgaging easy for contractors. Let us help you find a better deal—tailored to your income and future goals.