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There are many different mortgage types available for anyone looking to buy a home. For contractors some of these types may be more difficult to get, but all are still available whatever your situation. You need to choose the right lender to get the best rates and deals on your mortgage, but before you do this you should know what type of mortgage you are hoping to get.

Buy To Let

This type of mortgage is designed for those who want to buy a home that they are not going to live in. It might not seem to make sense at first, to buy a property which you are not going to stay in, but buying a property to rent it out to tenants can be a great way to enjoy better financial security throughout your mortgage repayment term. Best chosen by those who already own property and want to increase their assets, with a buy to let mortgage the rent you charge your tenants goes into paying off the mortgage each month. Most landlords will charge a little more than their mortgage amount so that they have something in savings for repairs, or in case rent is ever late.


Offset mortgages are ideal for those with a lot of savings, or people with fluctuating incomes, such as contractors and those who receive bonuses. Your savings will be counted into your mortgage and taken off of the interest on your loan. This means that you will pay less in interest and thus will be able to pay off your mortgage faster. Overpayments are possible because you can simply put the money into your savings to bring down the amount you owe, and you can access your savings at any time without penalty.

Fixed Rate

A simple fixed rate mortgage can be ideal for contractors as it allows you to budget for your mortgage repayments each month. When your interest rate changes it will change the amount you need to pay out on your mortgage. This can mean that your monthly repayment rises suddenly and without warning. A fixed rate can often start out a little more expensive than other options on the market, but provides you with security over a certain term (usually between 2-5 years).


Mortgages designed for contractors specifically will often be more flexible to reflect your income. You may be allowed to make over or underpayments without penalties and the interest rate may be more contractor-friendly. The best way to find these types of mortgage is to use a contractor mortgage specialist such as AMS Mortgages, who can find a mortgage which will suit your current situation perfectly, and allow you to choose the repayment terms which will keep you financially stable.