Contractor Mortgage Options
The Contractor Mortgage options for UK Contractors are twofold.
1. You can step in to a high street bank and ask for a contractor mortgage or
2. You can contact a specialist contractor mortgages broker
The first of the contractor mortgage options is what most contractors take – but it is madness.
The second of the two contractor mortgage options is the clever one – but only the contractors in-the-know are able to benefit from it.
High Street Bank mortgages for contractors
If you step into the high street bank, or building society, they will:-
a) Ask to see three years worth of accounts, meaning you will have to have been a contractor for at least 3.5 years
b) Give you a quote based on your director’s salary. We all know that contractor prefer to keep that as low as possible. They want to take their money out in dividends and so maximise their returns.
You would have got a bigger offer if you had stayed in a permanent role.
Specialist Contractor Mortgage Brokers
So, what about the second of the contractor mortgage options?
That’s the sensible one.
A specialist contractor mortgages broker will:-
a) Get you a quote on production of your contract without having to show three worth of accounts to get a contractor mortgage
b) Get you a quote based on your day rate annualised.
Your Contractor Mortgage Quote
So, if you got £500 a day, that would be £2,500 a week.
They would multiply that by 48 to get your annual ‘salary’. That would make your annual salary £120,000 a year.
They would then multiply that by 4 to get your specialist contractor mortgage offer.
So they would offer you a contractor mortgage of £480,000.
As you would have to put down a deposit of a minimum of 5% you are talking about being able to buy a property worth more than half a million pounds.
This is the best of the contractor mortgage options.
Specialist Contractor Mortgage Broker
Tony Harris has been getting contractors specialist contractor mortgages for years now.
Because his client contractor have been paying up and not defaulting, he can often get contractors mortgage rates at better than current market rates.
He can even get contractors mortgage offers on the very first day of their first ever contract.
To find out more, or to apply, you should click on Specialist Contractor Mortgages