Is it difficult getting a mortgage as a contractor? As a contractor, you can make getting a mortgage as hard or as easy as you like. Using a contractor specialist will help in a number of ways:
- They have detailed knowledge of the contractor market
- They understand your specific needs and your income whether that is via a limited company, umbrella company or sole trader
- They know how to get you the best rate available for your circumstances
Contractors engaging with a specialist advisor for their contractor mortgage will speak to someone who understands contract income, contractor affordability and the contractor lifestyle. More importantly, an advisor with a direct line to underwriters willing to accept a short-term contract as proof of income.
ContractorUK have partnered with Freelancer Financials who have been helping contractors secure mortgages since 2005. Their expertise doesn't stop at knowing which lenders will and won't accept your application. They've been instrumental in helping banks and building societies develop tailored contractor mortgage lending criteria.
Freelancer Financials – the facts:
- Award winning company and trusted by contractors on the ContractorUK forum for years
- Wholly independent, with access to all contractor-friendly mortgage lenders;
- Have helped banks and building societies devise their contractor lending criteria, so know precisely what is best for each contractor
- Have been successfully getting mortgages for contractors since 2005
- They understand contracting, so can interpret contract income to mortgage lenders
- Borrow up to 5 times your annualised contract rate (subject to status)
- They can often use just your current contract, an up to date CV, 3 months' bank statements and proof of ID to secure your contractor mortgage.
The biggest difference is that Freelancer Financials get to know you. Your situation, career status and ambitions - they all should play a part in your mortgage choice. A free, confidential chat with one of our experienced team will point you in the right direction. Start that conversation by filling in this form.
Five Top Mortgage Tips to a successful
contractor mortgage application
1. Ensure your contract is up to date
Make sure you have a copy of your most recent contract to hand when putting together your mortgage application. It’s important to be able to show lenders not only how much income you have, but also how long you have remaining on your contract.
2. Avoid lengthy breaks between contracts
There are many perks to working as a contractor, not least being able to take breaks between contracts should you wish to. This is great for holidays or similar. However, you should try and avoid taking breaks of anything more than 6-8 weeks. This is because lenders ideally want to see consistent income and contracts stretching back 12-24 months prior to your mortgage application.
3. Be realistic about your repayments
A common mistake many professionals make when searching for a contractor mortgage is being unrealistic when it comes to estimating their repayments. It’s really important when putting your mortgage application together that you make sure the repayments you commit to are going to be affordable for you.
4. Have at least a 10% deposit
Most lenders will require you to have a good-sized deposit when you apply for a contractor mortgage. Ideally, you should aim to have at least a 10% deposit ready to pay upfront.
5. If suitable, look for mortgages that allow additional payments
Some contractors may find themselves with more money than they need on a regular basis thanks to high-value or frequent contracts. If this sounds like you, you should try to find a mortgage that allows you to pay chunks off in addition to your regular monthly repayments. This will enable you to take maximum advantage of your position and pay-off more of your mortgage quicker.