Tax legislation, known as IR35, has been introduced to ensure that contractors pay the right amount of tax.
It was designed to deter people from claiming to be contractors when they're essentially working full time at one company, which can mean they end up paying less tax than an official employee would.
If you're a contractor who's been impacted by IR35, meaning your tax liability is higher than it might otherwise have been, this could affect your mortgage application, as lenders might view you as having less income (after tax) at your disposal.
You might also find that mortgage lenders look more closely at your application if you've recently changed the way your business is set up for tax purposes. Where you think that IR35 tax change implications might affect the amount you're able to borrow, it's best to speak to a mortgage broker who can advise you.
If you are employed by an umbrella company, IR35 tax rules will not apply to you.