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Contractor Mortgage
with Bad Credit

Contractor income plus bad credit is a dual underwriting challenge most brokers won't tackle. Darryl specialises in exactly this combination — day rate income assessment alongside adverse credit.

Why Contractor Bad Credit Cases Are Complex

Mainstream lenders struggle with contractor income — they want P60s, payslips and 2-3 years of tax returns. Specialist contractor lenders use day rate calculations. When you add adverse credit to this, the number of lenders who can consider your application narrows considerably. But Darryl has placed contractors with CCJs, defaults and completed DMPs using day rate income calculations at lenders who understand both elements.

How Day Rate Income Assessment Works

Example: A contractor on £450/day working 220 days per year has an annualised income of £99,000. Some lenders apply a 4-4.5x multiplier to this figure — giving a maximum loan of £396,000-445,000. This compares very favourably to what the same contractor's accounts-based tax return might show, which could be significantly lower due to dividend strategy or recent business investment.

About Darryl Dhoffer

CeMAP and CeRER qualified independent mortgage broker. FCA regulated — No. 301173. Based in Bedford, serving clients across the UK since 2015. Specialises in adverse credit, complex income and specialist mortgage cases. Every client works directly with Darryl — no handoffs, no call centres.

CeMAP Qualified FCA No. 301173 90+ Lenders Bad Credit Specialist
Do I need 2 years of contracting history for a contractor mortgage?

Most specialist contractor lenders require at least 12 months of contracting history, with some requiring 2 years. If you have just transitioned from employment, Darryl assesses the best lender approach given your specific length of contracting history.

Can a CIS worker get a mortgage with bad credit?

Yes. CIS (Construction Industry Scheme) workers have specific income assessment criteria with certain specialist lenders. CIS combined with adverse credit narrows options but Darryl has specific lender relationships for CIS bad credit cases.

My day rate has increased significantly in the last 6 months. Can lenders use the new rate?

Some specialist lenders will use your current day rate contract rather than an average of the last 12-24 months if the contract is current and verifiable. This can significantly increase the mortgage available. Darryl identifies which lenders allow current rate assessment.

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Your home may be repossessed if you do not keep up repayments on your mortgage. Darryl Dhoffer is an appointed representative of Access Financial Services Ltd, authorised and regulated by the Financial Conduct Authority — FCA No. 301173. Registered England No. 04427489. General information only — not regulated financial advice.

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Free, no-obligation call. No credit check. Darryl responds personally within 2 hours Mon–Fri 9am–6pm.

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