What are the disadvantages of being a contractor?

From a mortgage point of view, the main disadvantages can include additional paperwork, lender choice being more criteria-led, and greater scrutiny of income continuity. Contract gaps, recent changes in trading structure and inconsistent earnings can sometimes reduce borrowing with certain lenders. That said, specialist underwriting often overcomes much of this. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.