How do contractor mortgage rates compare to the record low 2 year fixes?
There has been much focus recently in the media relating to the record low rates being introduced for residential mortgages, but how do contractor mortgage rates compare?
If you are employed and have at least three months’ payslips and a good credit score, you can apply through Deal Direct for a 2 year fixed rate from Clydesdale that is being offered at a rate of 1.24% for 60% LTV.
A 5 year fixed rate from the same lender is available at 1.89% for the same LTV.
This may represent a good mortgage solution for you – if you are employed, but what if you work for yourself? Does applying for a contractor mortgage automatically mean you are doomed to pay a higher rate because the lender thinks you represent a higher risk?
It may surprise you to know that this view, although widely held in the market not so long ago, is now out-dated.
A great number of lenders, both niche and mainstream, recognise the growing number of people choosing to work for themselves in the UK. Consequently, they have responded and created a range of mortgages especially designed to cater for the needs of contractors.
To be certain you are applying for the best possible mortgage option taking into account the detail of your financial circumstances, seek the help of one of our knowledgeable Deal Direct experts.
Call 0800 048 8828 for a low-rate contractor mortgage.
