Remortgages for contractors

What your current lender will do

As your mortgage deal nears its end date, your current lender will contact you directly. This might be via their banking app, email, or post. They’ll offer you what they consider to be their best current deal. Most of the time, this is based on the details they have on record* for you.

If you accept this offer, you can usually complete the switch in just a few minutes. It feels easy, painless even…

…but that’s exactly the point!

The problem is that your lender can only show you their own products. It may be going a little far to say that they’re playing on your loyalty and the hassle-free nature of the transaction. But, no: they have no reason or duty to tell you about better deals available elsewhere in the market.

Why you should look further

There are hundreds of remortgage products available in the UK at any given time. If you accept your current lender’s offer without shopping around, you could be missing out on a better rate — without even knowing it.

This is especially important for contractors. Not all lenders understand how contractors are paid, and specialist lenders who do often offer more competitive terms. For the full breakdown of why all contractors should use a specialist broker, see our dedicated contractor mortgage page.

*Is your current lender appraising your situation fairly?

There’s also this to consider: you may be in a position to get cheaper rates than when you took out your previous mortgage!

Think about it. If you’ve kept up your mortgage repayments and managed other finances competently, your credit score may well have improved.

And what about the equity in your home? There’s a chance that you’ve moved into a better LTV band. If you’ve moved from, say, 90% LTV to 85% LTV, the deals available to you only get better.

If your current lender has appraised you based on their records, there’s a chance they may miss both your improved credit score and the equity in your home!!

How Freelancer Financials can help

At Freelancer Financials, we search the whole market on your behalf, not just one lender’s product range. We work with an extensive network of contractor-friendly lenders, so we can find the best deal, whether that is with a new lender or with your existing one.

Our Rate Monitoring Service

When you sign up for our Rate Monitoring Remortgage Service, we act on your behalf from the moment we identify a suitable deal and you ‘ringfence’ it.

Here is how it works:

1. We ringfence a deal for you. We secure a competitive remortgage rate for up to six months before your current deal ends. This means you are protected well in advance of your deadline if rates go up.
2. We monitor rates on your behalf. During that six-month window, we are automatically notified any time a lower rate becomes available that applies to your situation.
3. We pass the savings on to you. If a better rate comes in, we will contact you to confirm that you’re happy for us to move you to that lower rate. Or, you can tell us to switch you automatically. You do not need to do anything — we do the work for you.

Your current lender will not do this. Even if their own rates drop during this period, they will not proactively offer you a cheaper deal. That is the difference between working with a broker and going direct.

What does it cost?

In summary

Here’s a visual breakdown of the advantages of using our Rate Monitoring Service:

If your mortgage deal is ending in the next six months, now is the right time to start talking to our experienced brokers. We’ll search the market to find the best contractor remortgage for your situation. Then we’ll monitor rates and make sure you are on the best deal available - all at no extra cost to you.

Alternatively, sign up for our Rate Monitoring Remortgage Service today.