How to Remortgage as a Contractor
How to Remortgage as a Contractor
Blog Article
Remortgaging can be a smart move—whether you're looking to reduce monthly payments, switch to a better rate, or release equity from your home. But if you're a contractor, the process can feel a little more complex.
Here’s how to remortgage successfully as a contractor.
Why Contractors Remortgage
Your fixed-rate deal is ending, and you want to avoid a higher standard variable rate (SVR)
You want to release funds for renovations or investments
You’re looking for a better interest rate due to improved income or market conditions
Whatever your reason, it’s important to start the process a few months before your current deal ends.
What Lenders Will Look At
Even if you already have a mortgage, your contractor status means lenders will re-assess:
Your current contract and income
How long you've been contracting
Credit score and financial history
Business and personal bank statements
Some lenders may calculate your income using your day rate × 5 days × 46–48 weeks formula—especially if you're on a fixed-term contract.
Steps to Remortgage as a Contractor
Check your current deal – Know your end date and any early repayment charges.
Gather your documents – Contracts, bank statements, ID, and possibly SA302s.
Review your credit score – A stronger score can help secure better rates.
Work with a contractor mortgage broker – We help match you with lenders who understand contractor income structures.
Compare deals – Don’t just look at interest rates—consider fees, flexibility, and overpayment options.
Can You Switch Lenders?
Yes. Many contractors remortgage with a new lender to access better terms. Others do a product transfer with their current lender to keep things simple.
Final Thoughts
Remortgaging as a contractor doesn’t have to be complicated. With the right preparation and lender, you can make the switch smoothly—and potentially save thousands.
At Contractor Mortgage Solutions, we specialise in helping contractors remortgage with confidence.