As a contractor there are various arguments for both owning and renting, and it is really down to you whether you decide that the time is right to look into a mortgage or want to keep renting for the foreseeable future. The basic fact is that if you are renting a property you may pay off thousands and thousands of pounds on a mortgage, but the house will never be yours. All you are doing is paying someone else’s mortgage and will have nothing to show for it at the end. However, renting does give you the flexibility to move whenever you want, and as a contractor this can be a helpful way of living, especially if you don’t know where your next contract will take you. In many cases, renting is best for contractors who are just starting out and may still move around until they settle in a longer term contract, or at least choose a permanent town or city. Once you are settled, though, it may be time to start looking into mortgages.
If you have a mortgage then you are building towards more financial stability. Although mortgages are a significant financial commitment and may actually cost you more to begin with, once you get into the habit of paying off a mortgage you should soon find that your monthly payments become manageable. On top of this, every penny you put into your mortgage goes back into your pocket in the form of paying off your house which will eventually be your biggest financial asset.
The major sticking point for many contractors is finding a mortgage that they can afford and which offers them the flexibility to pay it off on their own terms. Contractors tend to have more flexible work and pay schedules and may receive bonuses or large sums of money in at random times. Having a mortgage that accommodates this and allows contractors to over or under pay when necessary can be a boon for any contractor, but high street lenders are still uncomfortable lending this type of mortgage to a contractor.
This is where contractor mortgage specialists like AMS Mortgages come in helpful. AMS Mortgages have searched the market and found the very best in contractor mortgages, in many cases offering rates that match those of high street lenders for traditional mortgages. You can also use the expertise of a contractor mortgage specialist to ensure that the mortgage you are getting into is the right one for you, and one which you will be able to afford in the long run. With a mortgage calculator you will be able to work out exactly how much you can borrow and afford to pay back before you even start looking at mortgages.