Contractor Mortgages

Contractors appreciate the flexibility and autonomy their work offers, but it also presents unique challenges, particularly when it comes to securing a mortgage or other forms of borrowing. Despite these hurdles, there’s no need to lose hope. Our expertise lies in uncovering tailored mortgage solutions specifically designed for contractors, often at more favorable rates than those offered directly by lenders. Here’s what you need to know to navigate the mortgage landscape as a contractor effectively

Proving your income as a contractor

Contractors seeking a mortgage typically encounter lenders who request evidence of earnings spanning the past 2 years. However, requirements vary among lenders, with some potentially requiring a shorter track record. Generally, lenders calculate an average income over a recent period to gauge future earnings potential. For those with fluctuating earnings, lenders may consider the most recent earnings or even assess based on the lowest point of income. This approach can sometimes result in borrowers being approved for a mortgage amount lower than what they could feasibly afford.

Can I get a mortgage if I’m on a Day Rate Contract

In short yes you can, In certain cases, lenders may determine your borrowing capacity by considering your daily contract rate, potentially resulting in a mortgage offer. However, eligibility for this option varies among lenders, with some requiring evidence of a 12-month contract. It’s important to note that factors such as holidays and periods of unemployment between contracts may also factor into the lender’s assessment.

If I’m a Contractor can I get a mortgage with Another Person?

For numerous contractors, purchasing a home often involves partnering with a significant other, which can enhance their financial standing and streamline the mortgage application process, particularly if their partner is in full-time employment. The presence of a full-time employed partner reduces the perceived risk for lenders, thereby facilitating the mortgage approval process and potentially offering more favorable terms.

If I’m a CIS Contractor can I get a mortgage?

Yes you can, in fact with some lenders it’s easier to get a mortgage if you are part of the Construction Industry Scheme and often requires less documents to be provided.

Ways to Strengthen Your Application

Enhancing the stability of your employment as a contractor can significantly bolster your mortgage application. Securing long-term agreements is key to demonstrating financial reliability. Additionally, taking steps to improve your credit score prior to applying can positively impact your application’s outcome.

If you believe a contractor mortgage aligns with your needs, or if you wish to explore our services further, we encourage you to reach out. Our team is dedicated to providing comprehensive information on available options and guiding you through the intricacies of contractor mortgages, empowering you to make well-informed decisions. Get in touch today to embark on your mortgage journey with confidence.