How to find the best contractor mortgage deals?
In short
The best contractor mortgage deal is the lender whose criteria fit you, not the lowest headline rate. A whole-of-market broker checks which lenders will assess your day rate, accept your contract type and history, and still price competitively, then applies to the strongest fit first time.
It is tempting to sort by rate and apply to the cheapest lender, but contractors who do that often get declined or offered far less, because the lender averaged their accounts. The headline rate is only a good deal if the lender lends you what you need on terms that fit.
A broker who works across the whole market lines up the lenders that assess day rate, checks their current contractor criteria, and weighs rate against how much each will lend. That usually produces both a competitive rate and the borrowing you expected.
Key points
- The cheapest rate is not the best deal if borrowing is capped
- Match to lenders that assess day rate, not averaged accounts
- Live criteria change often, so check before applying
- A whole-of-market broker compares rate and loan size together
In practice
Two lenders offered a contractor near-identical rates, but one annualised his day rate and the other averaged two lean years of accounts. The first offered 90,000 pounds more for the same monthly cost.
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Ajay Nayyar
Founder and Managing Director
Ajay founded Hearthstone Mortgages in 2019 and advises on mortgages, bridging loans and protection. He has built his own property portfolio across the UK and is a spokesperson for one of the most active property networks.
Away from property, Ajay is an actor and multiple award-winning film producer with over 20 projects to his name.