Favourite Contractor Mortgages
My favourite contractor mortgages brokers are those that are specialists in the contractor market.
These guys didn’t exist till ten years ago.
Contractors always found it difficult to get mortgages.
When they went in to see high street banks and building societies, with their new-found wealth, they expected to be welcomed with open arms.
Instead, it was just the opposite.
Contractors Too Risky To Loan Money to
The banks and building society managers saw them as a big risk. They didn’t have steady income like a permanent employee.
They saw them as so risky that they wanted to see a track record.
They wanted to see three years worth of accounts.
That meant that you had to have been a contractor for well over three years to have those.
Contractor Mortgage Offer Blow
Then, if they managed to pass that obstacle, they were hit with a blow to the solar plexus.
The mortgage offer they got was just a multiple of their Director’s salary.
Most personal service company contractors keep that deliberately low. They want to take their income in dividends, which are taxed at a lower level.
This is what happened to me when I first wanted to buy a house. I was sent packing and told to come back in a few years.
Even now, if you walk into a high street bank, or building society, this is the response you will get.
Specialist Contractor Mortgage Brokers
Luckily, with the advent of specialist contractor mortgage brokers, contractors can now get proper mortgage offers.
Contractors can get the best mortgage offers and the best interest rates through them.
There was a huge gap in the market with the growth of the contracting market in the UK.
Contractors were on the outside looking into the deluxe mortgage market.
Those that took on mortgages when they were permanent employees were the lucky ones.
Specialist Mortgages for IT Contractors
However, ten years ago, one mortgage broker convinced one mortgage lender to take a chance and loan money for mortgages to a few IT Contractors.
That worked, so they loaned more IT Contractors money for mortgages.
Instead of being a risk, these IT Contractors paid up their monthly mortgage instalments regularly and had a lower rate of default than on the general market.
As a result, this specialist deluxe contractor mortgage broker got more and more credibility with more and more lenders. They were falling over themselves, then, to loan to contractors.
Mortgages for All Contractors
A couple fo years ago, the mortgage lenders expanded the market to all contractors.
Now, there are more and more great deluxe mortgage offers for contractors from more and more lenders through these specialist contractor mortgage brokers.
As I said, the favourite contractor mortgages are got by those mortgage brokers specialising in getting contractors mortgages.
They can get contractors lower interest rates and higher mortgage offers than contractors could get on the general mortgage market.
The Best Contractor Mortgages
The great news is twofold.
Firstly, contractors can get mortgage offers based on their daily rate annualised rather than using their Director’s salary.
The mortgage lenders take contractors’ weekly rate and multiply that by 48 for a contractor’s annual salary.
They then multiply that by 4 (or even 5 sometimes) to get the mortgage offer they make.
Using Your Contract as Proof of Income
The second great piece of news is that the best mortgage lenders don’t need to see three years worth of accounts before making a mortgage offer to contractors.
They just need to see a contractor’s contract ss proof of income.
Indeed they can get a first time contractor a deluxe mortgage offer on the very first day of his, or her, first ever contract.
The favourite contractor mortgages brokers in the contracting market are those that can get the best offers for contractors.
To find out more, or to apply for one of these top class mortgages from the specialist brokers, just click Favourite Contractor Mortgages Application and fill in the form.