Contractor Buy to Let Mortgages

Podcast approved by The Openwork Partnership on 30/09/2025.

Can I get a Buy to Let mortgage as a contractor?

Yes. There are lots of different qualifying criteria, and it can be a minefield if you attempt this yourself.

Ultimately, contractors might be seen as slightly higher risk, as they’re not permanently employed. But we can get you a Buy to Let mortgage if you’re a contractor.

Some banks set a minimum income, but it works differently from buying your own home. The rules with Buy to Let can be a little more flexible.

How does a Buy to Let mortgage for contractors work? Are there any differences in the process?

For a Buy to Let mortgage, unlike with residential property, the mortgage size is not a multiple of your income. With investment property lenders have a minimum income requirement, but how much you can actually borrow is dictated by the rent that will be achieved on the property.

For a contractor, we usually need proof of your income or your contract, but it’s not heavily leaned on. As long as you’re working and have an income, most banks allow you to get a Buy to Let. Even if you’ve just started your role, it’s not necessarily an issue.

Why should contractors invest in Buy to Let properties? What are the pros and cons?

We’re recording this in September 2025, and the main pro is that in the long-term, this is proven to be a great investment.

You’re receiving a rental income that could potentially pay back the mortgage on the property. Also, over time, property values tend to go up, so you get growth there as well. There can be great benefits and profit from property investment.

I will caveat that, though, as there is a risk element. You’re borrowing money for a property which could go down in value. You might not find a tenant straight away – there are pros and cons.

We deal with many portfolio landlords and investors with one or two properties, and over time it’s definitely proven to be a great investment. We will help you understand the figures, particularly around the borrowing, and help you make sure it’s the right decision for you.

Ultimately, we can’t suggest you buy a certain property or tell you the right thing to do – that’s not our job. But we give you some options so you can make an informed decision about the right long-term investment for you.

How will lenders assess my income for a Buy to Let mortgage as a contractor? What documents do I need to provide or prepare in advance?

Many Buy to Let mortgages don’t have an income requirement as such, but they often need you to be a homeowner. If you don’t own your home, it can be a little bit more difficult.

Rather than income-led, the mortgage is heavily reliant on the rent on the property. However, banks will look at your income to make sure you earn some money and can pay your own bills. They’re not going to give you money if you don’t have an income.

The typical document required for a contractor is a copy of your latest contract. You may get payslips, depending on your contract, which are also useful, or you may submit a tax return or self-assessment at the end of every year.

If you’re thinking of buying an investment property, we can look at your contract and role and let you know what banks will ask for. There isn’t a single document that fits all contractors – it will depend on what type of contractor you are and how you’re paid.

Should I Buy to Let as an individual or through a limited company?

When you purchase a Buy to Let through a limited company, it can be more tax-efficient in some situations and you can offset more costs. You might pay less tax potentially if you do it through a limited company rather than as an individual.

I would always urge you to speak to an accountant if you’re considering the options. From a mortgage perspective, the qualifying criteria is similar across both – but of course you may need to set up a limited company for the purchase.

An accountant will help you with all of this – setting up a company and looking at whether this is the right route for you. These are key conversations to have if you are thinking of investing in a property, because ultimately you’ll be receiving an income and you’ll have to declare and pay tax on that.

How does tax work with a Buy to Let property as a contractor?

As you can appreciate, there are added complications with tax because you’re receiving an income from your tenant. Also, if you sell the property in the long-term, there could be tax payable at that point as well.

You need to get that advice from an accountant. We’ll explain what you qualify for on a mortgage, but alongside that you need a conversation with an accountant about the structure and tax.

How does remortgaging a Buy to Let property as a contractor work?

There’s not a huge difference in the process. You might be remortgaging to get a new rate or to borrow some more money. But generally the same rules apply. We’re heavily focusing on the rent the property receives, not so much your income.

The same documents apply – a copy of your contract, payslips or tax returns. Again, it depends on the type of contractor.

Can I get a Buy to Let mortgage as a contractor if I have bad credit?

The short answer is yes, it’s a possibility. It does depend on the type of bad credit. As you can imagine, we’ve got Buy to Let, then we’re adding contracting in, and then bad credit.
Adding all these things to the mix does add more complications.

It does make it more difficult, but it’s not impossible. If you’ve got the odd missed payment on a phone contract, that might actually be fine with some high street banks. A low score might also be OK with most high street lenders.

If it’s more serious than that, with defaults, CCJs or even bankruptcies, certain specialist lenders may accept those. It depends how recent the issue was, the severity and the size.

How do I apply for a Buy to Let mortgage as a contractor?

The same process applies for contractors and non-contractors. It’s just that different documents are required. To apply, we recommend speaking to an advisor.

This is completely different to a residential mortgage. As you can appreciate, there are tax implications, whether you’re buying as an individual or through a limited company, and then as a contractor, more factors come into play. Having those conversations early on will better prepare you for success moving forward.

Talk to an accountant as well, just to double-check we’re not missing anything.

How long is the process?

Being a contractor won’t lengthen the process. It just means we have to do things slightly differently in terms of documents and which bank to approach.

On average, it can take two to four weeks to get your mortgage fully approved. The timing to buy an investment property can really vary. It depends on the location and the seller, but it tends to take at least a few months to purchase a Buy to Let.

Again, there’s no added length because you’re a contractor. We might just need to take a different route to get there.

What else do we need to know about Buy to Let mortgages for contractors?

We often see contractors who have approached their own bank, or one on the high street and not been given the answer they were looking for. Don’t be disheartened.

There’s a real variety of lenders – some accept things that others won’t. Just because one or two banks have said no, that’s not a reflection of the whole market. A mortgage broker who helps a lot of contractors can help you understand which banks are right for you.

We can’t 100% guarantee you a mortgage – that’s never the case. But banks take such different views on things, so one rejection doesn’t stop you getting a mortgage.

The other part is getting prepared. Speaking to a broker as early as possible will help you prepare for what’s ahead – and should ensure you’re approved first time.

MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

For specialist tax advice, please refer to an accountant or tax specialist.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Approved by The Openwork Partnership on 30/09/2025.