CONTRACTOR MORTGAGE
EXPERTS

As with self-employed individuals, mortgage lenders will consider applications from contractors. Contractor friendly mortgages processing is not as complex as some might believe. We have lenders we work with who are confident of being able to secure contractor and freelancer mortgages, which saves time and money and ultimately speeds up the process.

Lenders will consider your income, security and monthly expenses. This will be used to calculate how risky an investment you are. Of course, this isn't as simple as other types of mortgage applications, as your monthly income will likely fluctuate. Therefore, we recommend the following to increase your chances of success of receiving an offer for a mortgage as a contractor:

• Saving as large a deposit as you can.
• Strengthening your credit score.
• Organising evidence of ongoing and long-term client agreements.
• Not taking time off in the run-up to the application.
• Submitting in-depth information regarding your operating costs and expenses.

Yes, some lenders are willing to work with an hourly rate; however, the process they go through to calculate your affordability will differ from lender to lender. Therefore, it’s worth enlisting a mortgage broker’s help to assist in finding the best contractor and freelancer mortgages possible for you.

Utilising the payroll company of the umbrella organisation you operate within shouldn’t necessarily cause a problem; however, the criteria for this differs from lender to lender. In general, many lenders are more cautious about lending to contractors. In this situation, choosing the right mortgage company will be critical, and our team can help and will liaise with our portfolio of mortgage companies to find the best deal for you.

Most lenders will prefer a stable job with an end date with consistent income and an amount of time remaining on the contract. High street lenders, tend to view rolling contracts as unstable employment. However, it does depend on your circumstances, what type of contracting work you do and your career to date. The good news is that there may be options available to contractors with rolling contracts.

No, that is not necessarily the case. Although most lenders will require you to provide proof of income since you are technically self-employed, some may use your gross earnings based on their calculation of your current day rate.

A typical method of calculating your current day rate is to obtain annual income and divide by 5 x 48 (i.e., 5 days per week x 48 weeks).

Making sure you have the correct advice is essential, but lenders will likely be more inclined to offer you a mortgage if your income from self-employment is carefully considered in their calculations. However, there may be certain minimum income requirements if you are not an IT contractor.