Mortgages for Contract Workers

Posted on 23 January 2011 by Sandra

My husband was made redundant 1 year ago from his full time position in the rail industry. He is a telecoms engineer and has been working as a contractor, still within the rail industry, earning £1000 per week after deductions. He has been employed in the rail industry for 30 years and has never been out of work the company he is contracting with are soon to offer him permanent employment.

We currently have only 10% deposit to put down and are renting at the moment, we sold our house prior to this all happening, are there any mortgage companies out there who would lend to us as we are paying a fortune for rent? I also work part time earning £7000 per annum, we have never had any bad credit and always paid our mortgage bills and are eager to get on the property ladder but unsure if this is going to be possible?


Despite your husband being employed on a contract basis I believe there is every chance of securing a mortgage. There are a limited number of Lenders offering 90% LTV mortgages and amongst these are a couple who will look at your husband's previous employment history as a positive factor.

One of the most important things you need to do now is make sure that you are both showing on the Voters Roll at your current address. This simple matter is one of the main reasons people fail Lender's credit scores, especially when borrowing at high LTVs. You will need to supply a 3 year address history when applying for a mortgage and this will show up your previous well conducted mortgage and credit, helping the Lender reach a decision about your creditworthyness.

I recommend that you speak to an independent mortgage broker about your situation.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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