Remortgaging as a Contractor: What You Should Know
Remortgaging as a Contractor: What You Should Know
Blog Article
If you're a contractor with an existing mortgage, you might be wondering if remortgaging is straightforward. The answer is: yes, it can be—especially with the right advice. Whether you're looking to save money, raise capital, or switch to a better deal, remortgaging as a contractor is very achievable.
Here’s what to consider.
Why Contractors Choose to Remortgage
There are several reasons contractors look to remortgage:
Secure a better interest rate when your fixed term ends
Release equity for home improvements or investment
Switch lenders for more flexible terms
Consolidate debt into one affordable monthly payment
Whatever your goal, the key is to time it right and work with a lender who understands your contractor status.
How Contractor Income Is Assessed
When remortgaging, your new lender will need to verify your income. Many contractor-friendly lenders use a contract-based assessment instead of relying on accounts or payslips.
Typical formula: Daily rate × 5 × 48 = Annual income
Example: £400/day = £96,000/year
You could then borrow up to 4.5 to 5 times that amount, depending on your credit score, deposit, and expenses.
What Documents Will You Need?
To remortgage, lenders usually ask for:
Your current contract
3–6 months of bank statements
Proof of ID and address
A strong credit profile (especially if releasing equity)
If you've changed contracts or taken breaks, be ready to explain any gaps in income.
Why Use a Contractor Mortgage Broker?
A specialist broker can:
Access exclusive remortgage deals
Match you with lenders who are flexible with contractor income
Save you time and hassle by handling the process end-to-end
Final Thoughts
Remortgaging as a contractor doesn’t have to be complicated. With a clear contract and the right lender, you could save thousands or unlock the funds you need—without jumping through unnecessary hoops.
At Contractor Mortgage Solutions, we specialise in contractor remortgages that work for your lifestyle and goals.