What you need to know about contractor mortgages.

There are a lot of misconceptions around contractor mortgage deals, and everyone you speak to will have a different opinion or story. We’ve heard it all from: you need a minimum of 3 years of accounts to not being able to get a deal because of the end of self cert. 

Working out mortgage fact from fiction.

• Are 3 years of accounts necessary?

No this is not the case. Some lenders will now approve a mortgage based on contract rate alone. With these lenders you only need to provide your current contract, your bank statements and your ID.

• Do I really need to have been contracting for a minimum of six months?

Once again not all lenders will have this requirement. Those that underwrite their contractor mortgages on an individual basis, and have an understanding of this sector, will allow you to apply for a mortgage as soon as you start contracting.

• Am I considered high risk and will this affect the amount I can borrow?

Lenders who have knowledge of the contracting world will accept your application on the same footing as an employed borrower. The key is having a good credit rating, a deposit and knowing which specialist lenders to approach.

• Will I need a large deposit?

You may have heard you need a deposit of up to 50% for a deal, this isn’t the case. The requirement is the same for employed borrowers.

• Will my mortgage rate be higher because I’m a contractor?

No, approaching the right lender with experience of contractors means you will be offered rates as competitive as those offered to employed borrowers.

• Is it really complicated to get a deal?

Not, if you apply to a lender using specialist underwriters who understand the market.

These are just some of the questions were often asked at Deal Direct. If you want to know anything else about getting a contractor deal, then contact us on 0800 048 8828 for no-obligation mortgage advice.

We specialise in finding mortgage deals for contractors and can find you a competitive offer if you are buying a first home, moving up the property ladder, remortgaging or investing in a rental property.

Whatever your mortgage requirements call one of our specialist advisers on 0800 048 8828 and find out what is on offer at your deposit level.

Speak to us today to arrange a mortgage.

0800 048 8828