Contractor mortgage difficulty.
According to Government figures more people than ever are becoming self-employed or are turning to contract work. So significant is this change to the UK workforce, that David Cameron has said that self-employed small business owners are national heroes, who have played a major role in the UK’s financial recovery.
So why is this sector, which accounts for around 4.5 million workers, being frozen out of the mortgage market? Why as a contractor do you face difficulty getting yourself accepted for a deal?
With the introduction of the Mortgage Market Review which was designed to protect consumers, contractors began to find it a challenge to get a mortgage as they were considered higher risk.
Many lenders began to ask for three years’ of accounts and proof of a contract with 6 months left to go. In addition some even started to ask for proof of a 2 year track record of contracting.
With many major high street lenders self-employed / contractor mortgage remains tight, however a few more individual lenders have started to ask for just one year’s worth of accounts.
If you would like to find out which lenders would consider your application in a favourable light, call us at Deal Direct.
We have vast experience helping contractors to purchase their first home, move up the property ladder or remortgage.
If you would like mortgage advice and a competitive quote,
call us today on 0800 048 8828.
