As a contractor, getting a mortgage can be challenging. Most of these sites are lead generation sites, also known as affiliate sites, pure and simple. They see your take home pay, which should be low for tax planning.
There are three major barriers getting in the way of in-branch staff securing you a mortgage; they: Perhaps of more importance, we’re 100% independent. All independent professionals run their business in a way that’s unique to them. One of the first things contractors look for with their higher earnings is to buy a home.
What’s worse is the impression lenders leave them with. Loan-to-value is a percentage figure that indicates the size of the mortgage compared to the value of the property. Speak to a specialist financial adviser who understands contractors and is used to dealing with underwriters who lend to contractors. The process from first engagement with a financial adviser to having an offer of funding legally confirming that the money is in place can take up to six weeks and lenders with the best rates can take even longer. We understand the way people choose to work has changed. Get specialist, industry specific contracting news direct to your inbox every month. This was especially true when it came to mortgages. Recently, however, as more and more people have started freelancing or contracting, lenders have woken up to the potential of the contracting sector and there are now a growing number of specialist lenders who are offering contractor mortgages. As mentioned above, contractor mortgages came about because banks and building societies were reluctant to lend to contractors because they considered them high risk. How are these any different to normal mortgages? The lenders now know that contractors work across a wide range of industries and work in a wide range of styles, organising their finances in a number of different structures. Despite the changes in the market, your high-street bank or building society is still probably not the best place to start. That’s why the first place you should look is a specialist contractor mortgage broker. Fully qualified and skilled in assessing and understanding your circumstances and presenting it to the underwriter in a manner that is acceptable to them. We know all the lenders and all the niches, making us one of the first stop for contractors who are savvy and want results. Heather had been self-employed contractor for over a year.
Mortgage lenders are increasingly coming to terms with the fact that work roles are changing and more experienced individuals are choosing dynamic work arrangements. Mortgage lenders like to see a history of previous contractor experience and continuous work or regularity of income. We will save you time and money and we can take away all of the application hassle and put you with the right lender and manage your application all the way through to completion. Yes – there are many approaches you can take to secure a mortgage – your own bank, another high street bank, or by using a comparison site. No, contractors are not seen as ‘high risk’ workers – as perhaps they were a decade or so ago.
All lenders will require proof of your name, address and income. Once a lender has completed its full checks, they will offer you with official confirmation that they are willing to lend you an agreed sum. It means that the offer would be even less than they would have got as a permanent worker. Because of the reputation they have built up, they have credibility with mortgage providers. Okay, so you’re self employed and you need a mortgage. In a world of large financial institutions and mortgage brokers we’re a bit different. Most mortgage brokers look and act the same, but we’re happy to be specialists in our field.