A Guide to getting a Contractor Mortgage

Finding the right mortgage can be challenging enough when you’re in a traditional employment arrangement. As a contractor or freelancer, you’re likely to face even greater difficulties. Fortunately enough, CMME are able to provide a high-end service dedicated to securing independent professionals the property they desire. With over thirteen years of experience, CMME are perfectly positioned to help you find the contractor mortgage you deserve.

For many years, lenders have been working under the misapprehension that all independent professionals are high risk borrowers and, as a consequence, finding finance for a home or buy to let property has been made incredibly difficult. CMME understand that in today’s marketplace this stereotype of the unstable and precarious contractor no longer bears any relevance to the truth. That’s why they’ve dedicated themselves to becoming the principal mortgage broker for contractors, freelancers and the self-employed in the UK.

To help you through the process of getting a contractor mortgage, CMME have created this handy, five step guide.

1. Understand the problems you face

As an independent professional, you face two major issues when it comes to applying for a mortgage. First, you need to be able to provide proof of your full income in a way that gives you the best possible chance of receiving the full funding you require. Secondly, you need to be able to demonstrate that you will be able to continue making your mortgage payments when your current contract expires. It’s important to remember that a mortgage application is all about presenting yourself as a low risk investment.

2. Know what kind of client you are

How a lender responds to your application will vary depending on whether you’re a first time buyer, next time buyer or thinking of remortgaging. Each type of applicant has different needs, demands, sources of income and expenditures and, consequently, will need to provide different information and evidence throughout the application process. Knowing what type of client you are and what information you need to provide in each context is an essential to a successful application.

3. Know what type of mortgage you want

There are a number of different types of mortgage, including fixed rate, capped rate, and variable rate mortgages. It’s vital that you understand the pros and cons of each and know which best suits your personal circumstances and ambitions. Not doing the proper research could mean you end up paying more for a longer period of time, so speak to a specialist adviser if you’re unsure.

4. Think about additional fees

There are always other costs involved in buying a house and you need to take them into account if you’re to comprehend the full cost of buying a property. These can include;

  • Arrangement fees – fee the lender charges for setting up your mortgage.
  • Valuation fees – fee the lender charges for carrying out a valuation of the property.
  • Legal fees – fee the solicitor or conveyancer will charge for the legal work they carry out.
  • Stamp duty – fee paid to the government on all residential properties over £125,000.
  • Broker fees – fee charged by the mortgage broker for arranging your mortgage.

5. Understand there’s a reason why specialist brokers get the best deal

Specialist mortgage brokers like CMME are able to get the best deal for independent professionals for a number of reasons; firstly, they know each individual mortgage product inside out and understand exactly how they work and who they benefit. This knowledge is the product of years of experience working in the mortgage sector.

Secondly, CMME have spent more than a decade working closely with a wide variety of lenders, most of whom they’ve developed close working relationships with. Rather than dealing with front of house staff who may not fully understand the specific needs of contractors, freelancers and the self-employed, CMME go directly to the individuals and departments that will work with independent professionals. This kind of experience is invaluable when it comes to securing the best deal possible.

ContractorUK are not authorised to offer regulated mortgage advice. ContractorUK are introducers to CMME.

Your home may be repossessed if you do not keep up repayments on your mortgage.

CMME is a trading name of CMME Mortgages and Protection Limited. Authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 04886692. Registered Office: Albany House, 5 Omega Park, Alton, Hampshire, GU34 2QE. Please be aware that Commercial Mortgages, Overseas Mortgages and some Buy To Let Mortgages are not regulated by the Financial Conduct Authority. Calls may be recorded for training and security purposes and to improve the quality of our services.