Mortgage for Subcontractors

How much can subcontractors typically borrow based on their income?

This depends on which lender you’re looking at. They would look at your income in line with how your contract works.

Let’s say, for example, that they calculate your income at £50,000 and you have a partner who also earns £50,000. They’d put your incomes together to make £100,000 and generally then lend you between 4.5 and six times that annual household income. If you’ve got children or regular financial commitments, they may reduce that total accordingly.

Can subcontractors use their self-employed status to get a mortgage?

Yes, they can. If you’re self-employed, there are different ways we can assess it.

We can look at your last two years’ tax calculations and tax year overviews – and some lenders will just look at the most recent year’s figures. If you’re a limited company, they’ll look at your company accounts.

This is where it can be flexible, depending on the lender. Some lenders will want to see your contracts themselves, while others will want to see what you’ve put through the tax calculations and tax year overviews. It massively depends on which lender you speak to.

Do subcontractor mortgages usually come with higher interest rates?

No. As an example, if you’re approved for a mortgage with Nationwide, the interest rate you’ll be charged will be the same whether you’re employed, self-employed or a subcontractor. That’s the case across the vast majority of lenders.

Can subcontractors with a bad credit history still get a mortgage?

Yes. There’s a massive misconception that if you’ve missed a couple of payments or had bad credit in the past, you can’t get a mortgage. That’s just not the case.

It can be a little harder, depending on how recent the bad credit is. If you missed a payment or received a default yesterday, the impact on your mortgage options will be much more severe than on a default from five years ago.

The more recent the bad credit is, the more issues it will create when applying for a mortgage. If you can get to a 15% deposit, it opens up more lenders for bad credit mortgages. It’s not impossible. You may just be charged a little bit more on interest rates.

Do you need to have been a subcontractor for a certain time to qualify for a mortgage?

Yes. It depends which kind of contractor you are and which lender you’re looking at. The longer you’ve been contracting, the more mortgage options you’ll have.

You don’t necessarily need two years’ or 12 months’ proof. You may have a zero-hours contract and certain lenders will be happy with just three months’ proof of that. It depends on the lender and how your contract is structured.

What can subcontractors do to boost their chances of mortgage approval?

When you’re applying for a mortgage, it’s all about preparation. There’s nothing more heartbreaking than when people come to us having had an offer accepted on a house, but they haven’t had conversations about their credit, deposit or income – and they discover that their dream home is out of reach.

We always advise people to start having these conversations at least six months before they even think about finding a property. Then, we can put an action plan in place to address any issues and get you ready to apply.

You’ve demonstrated how a mortgage advisor can help. Any final thoughts on this?

We’ve covered the vast majority of it. Again, preparation is key. Subcontractor or contractor mortgages aren’t every lender’s forte, so avoid wasting time speaking directly to your personal bank. Just because you have that relationship, it doesn’t necessarily mean they will be favourable on your contractor income. A broker will know which lenders to approach based on your specific circumstances.

Key Takeaways:

• Lenders vary significantly in assessing subcontractor income; for example, some will accept the last three months of Construction Industry Scheme (CIS) payslips, while others require two years of tax calculations and tax year overviews.
• Qualifying for a mortgage depends on a sufficient deposit, good credit, and verifiable proof of income. Proof of income requirements vary widely based on the contract type. A zero-hours contractor may need up to 12 months’ payslips, whereas a CIS worker may only need three months’ payslips.
• Subcontractor mortgages typically do not come with higher interest rates than those for employed or self-employed individuals. While bad credit can make securing a mortgage more difficult, it is not impossible, and reaching a 15% deposit can open up more lender options.
• Plenty of lenders will accept a 5% deposit for a mortgage, provided the income matches their criteria. Lenders generally lend between 4.5 and six times the annual household income, which is subject to reduction based on regular financial commitments.
• Preparation is key to approval; start discussions about your credit, deposit, and income at least six months before looking for a property. Subcontractors are advised to use a broker who knows which lenders are favourable to contractor income, rather than contacting a personal bank directly.
  
  

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 17/02/2026.