How to calculate your income when applying for a contractor mortgage.

When applying for a contractor mortgage, demonstrating that you earn sufficient to secure mortgage approval, is only the first step.

To establish the size of the loan, an estimate needs to be made of your income. You may be tempted to exploit the figures as much as possible, but it is never advisable to take out a mortgage for more than you can afford.

The challenge when working for yourself is determining your true income as there are distorting factors, such as:

• Commission, bonuses or advances in addition to basic salary.
• The use of legal tax loopholes to reduce visible profits.
• The reinvestment of profits back into the business.
• Fluctuations in demand, provoked by market trends or seasons.

This is where expert mortgage broker, Deal Direct can really help you cause. Because of the relationships we have built with them over our years’ in business, we can help lenders better understand these distortions. This means your loan amount could be based on your actual earnings, rather than your net profits.

As all lenders use affordability calculators aligned to their own lending criteria, this could lead to a situation where what might be accepted by one lender, may be rejected by another. This is why working with Deal Direct is essential. With our expertise, you have access to lenders from across the whole of the market, which means more opportunity to be matched with exactly the right lender for you.

Avoid costly errors and use mortgage broker Deal Direct to search out a contractor mortgage that suits you perfectly.

For help with calculating your income for your mortgage application, call 0800 048 8828 today.