Contractor Mortgages with Bad Credit: Is It Possible?

Contractor Mortgages with Bad Credit: Is It Possible?

Blog Article

Having bad credit can feel like a major barrier to getting a mortgage—but if you're a contractor, the good news is that you still have options. While it may take a bit more planning, securing a mortgage with a poor credit history is very possible with the right approach.

1. Understanding What "Bad Credit" Means
Bad credit can include:

Missed payments

Defaults

CCJs (County Court Judgements)

Debt management plans

Bankruptcy (in the past)

Lenders will review your credit report to assess the level of risk. But not all bad credit is the same—the type, severity, and how recent the issue is all matter.

2. Can Contractors with Bad Credit Get a Mortgage?
Yes, but it’s important to apply with the right lender. Some specialist lenders are more flexible and will consider:

Your current contract rate

Stable work history

Explanation for past credit issues

Steps you’ve taken to improve your credit

At Contractor Mortgage Solutions, we work closely with these types of lenders and help present your application in the best light.

3. Tips to Improve Your Chances
If you have bad credit, you can still boost your approval odds by:

Registering on the electoral roll

Paying off or reducing existing debt

Keeping your bank statements clean

Avoiding new credit applications before applying for a mortgage

The stronger your current financial position, the more likely lenders are to overlook past issues.

4. Larger Deposit = Better Options
A larger deposit (typically 15–25%) can help mitigate your credit history and give you access to more competitive mortgage rates.