Can I Get a Contractor Mortgage with Bad Credit?
Can I Get a Contractor Mortgage with Bad Credit?
Blog Article
Having a less-than-perfect credit score can make the mortgage process feel daunting—especially if you're a contractor. But the reality is that many lenders now offer mortgages specifically tailored for contractors with bad credit.
Whether you've had missed payments, defaults, or even CCJs in the past, there are still routes to homeownership.
How Bad Credit Affects Your Mortgage Application
Lenders use your credit report to assess how you manage debt. Common credit issues that can raise concerns include:
Missed credit card or loan payments
Defaults or County Court Judgements (CCJs)
Individual Voluntary Arrangements (IVAs)
High credit usage or a lack of credit history
These issues may limit your lender choices, but don’t automatically disqualify you from getting a mortgage.
Contractor-Specific Challenges
For contractors, the added complexity of non-traditional income can make things trickier. Lenders unfamiliar with contracting may be reluctant to approve applications with any credit issues.
That’s why it’s essential to work with a specialist mortgage broker who understands both:
How to present contractor income clearly
Which lenders are open to applicants with bad credit
Tips for Getting Approved with Bad Credit
Check your credit report – Review it for errors and understand what lenders will see.
Improve your score where possible – Pay down debts and avoid new credit applications before applying.
Gather proof of income – Contracts, bank statements, and recent accounts will strengthen your case.
Consider a larger deposit – Even 10–15% instead of 5% can increase your options.
Use a contractor mortgage specialist – They can match you with flexible lenders and negotiate better terms.
Final Thoughts
Bad credit doesn't mean the end of your mortgage journey. Many contractors with imperfect credit have successfully secured home loans with the right support.
At Contractor Mortgage Solutions, we work with lenders who specialise in helping contractors—even those with credit issues—get the mortgage they need.