Can Contractors Get a Mortgage with Bad Credit?
Can Contractors Get a Mortgage with Bad Credit?
Blog Article
If you're a contractor with a less-than-perfect credit history, you might be worried that getting a mortgage is out of reach. But here’s the good news—having bad credit doesn’t automatically disqualify you from getting a mortgage, even as a contractor.
Lenders look at the full picture, and with the right guidance, you can still find suitable options.
What Counts as Bad Credit?
“Bad credit” can cover a range of issues, including:
Missed or late payments
Defaults
County Court Judgments (CCJs)
Debt management plans
Bankruptcy or IVA history
Lenders assess how recent and serious the issues are. For example, a small default from two years ago may not matter as much as a recent CCJ.
How Lenders View Contractors with Bad Credit
Contractors already have non-traditional income, so when bad credit is added to the mix, some high street lenders may hesitate. However, there are specialist lenders who are more flexible and used to working with:
Irregular income
Credit blips
Self-employed or contractor status
These lenders focus on your current contract income, overall affordability, and how you’ve managed your finances more recently.
How to Improve Your Chances
Work with a specialist broker who understands both contractor and bad credit mortgages
Check your credit report and fix any errors before applying
Save a larger deposit (15–25%) to reduce risk for the lender
Keep bank statements and contracts organised and up to date
Be prepared to explain the reasons behind any credit issues
Final Thoughts
Yes, contractors can get a mortgage with bad credit—especially with the right preparation and broker support. Every case is different, and many lenders are open to applicants with imperfect histories, as long as they can show current financial stability.
At Contractor Mortgage Solutions, we’ve helped countless contractors secure mortgages despite past credit challenges. Let us help you take the next step toward owning your home.