If you're a contractor with an existing mortgage, remortgaging can be a smart way to save money or unlock equity in your home. Whether your current deal is ending or you’re looking for better rates, understanding how to remortgage as a contractor can help you make the most of your situation.
Here’s what you need to know about remortgaging as a contractor.
1. Why Contractors Choose to Remortgage
There are several reasons why contractors might consider remortgaging:
Secure a better interest rate and reduce monthly payments
Switch from a variable to a fixed rate for stability
Release equity to fund home improvements or investments
Consolidate debts into a more manageable single payment
Whatever your reason, a tailored contractor remortgage can make a big difference financially.
2. How Lenders Assess Contractors When Remortgaging
When you apply to remortgage, lenders will reassess your financial situation just like they did during your initial mortgage. As a contractor, lenders may:
Base your income on your current contract rate
Ask for recent bank statements, contracts, and possibly tax returns
Review your credit history and property value
Many lenders will use your daily rate × 5 days × 48 weeks to estimate your annual income, which can work in your favour—especially if your earnings have increased.
3. Timing Your Remortgage
The best time to start looking for a remortgage deal is usually 3–6 months before your current rate ends. This gives you time to:
Compare the market
Avoid falling onto your lender’s standard variable rate (SVR), which is usually higher
Prepare the necessary documentation
4. Use a Specialist Contractor Mortgage Broker
Remortgaging as a contractor can be more complex than for salaried employees. That’s why it’s best to work with a broker who specialises in contractor mortgages. They can:
Recommend lenders who understand your income structure
Find better rates than those available on the high street
Handle the paperwork and speed up the process
Final Thoughts
Remortgaging gives contractors the opportunity to save money, access equity, and find better deals. With the help of a specialist broker and the right preparation, the process can be smooth and rewarding.
At Contractor Mortgage Solutions, we’re here to help you remortgage with confidence.