Contractor Mortgages Lender Allows for Breaks Between Contracts

Contractor Mortgages Lender

In a new breakthrough, a brand new lender has turned the contractor mortgages market upside down.

It used to be that it was very difficult to get a mortgage if you were a contractor.

Many contractors, with their new contract rates, double what the earned as permies, expected to be welcomed with open arms by high street banks and building societies.

However, they were seen as risks by them. Contractors had to produced three years of accounts which scuppered new contractors for several years.

Specialist Contractor Mortgages

Specialist Contractor Mortgages brokers

I know. It happened to me when I first started contracting. I was shocked.

Offer based on Director’s Salary

What’s more they only offered you mortgages based on a multiple of contractors’ director’s salary.

As we all know contractors like to keep this as low as possible. They don’t want to hit the upper rate of tax and so take much of their money in dividend payments.

You would have been better off applying for a mortgage as a permie before you went contracting.

Contractor Mortgage Brokers

However, in the past decade specialist contractor mortgage brokers have sprung up.

They have convinced mortgage lenders to loan to contractors.

Contractors could now get mortgage offers based on their daily rates instead of director’s salary

They could also get mortgage approval with just their contract as proof rather than having to produce three years worth of accounts.

Many contractors are taking advantage of these offers obtained through these specialist mortgage brokers.

Contractor Mortgages UK

Contractor Mortgages UK based on daily rate annualised

This was much better for contractors – although the lenders were still a little conservative.

Bluestone Mortgages

Now, a new lender, Bluestone Mortgages, backed by the private equity arm of Lloyd’s Bank, have come up with a mortgage much suited to contractors.

This new flexible contractor mortgage would suit those contractors who like to take time off between contracts.

Even more importantly, it will suit those forced to take time off between contractors.

Many a sleepless night has been spent by contractors who have all their bills to pay whilst not knowing when they will get their next contract.

Breaks in Contract Work

Bluestone Mortgages are showing a great understanding of the contracting profession.

Previously contractors would find it difficult to get a mortgage if they had any break in contract work in the past year.

Now Bluestone Mortgages will allow up to a 6 month break in the past year.

They will also take a flexible view of any missed payments that are on a contractor’s credit file.

Knowing how contracting works they are even accepting the odd serious credit transgression showing on the contractor’s credit file.

Best Mortgage Deals for UK Contractors

Best Mortgage Deals that UK contractors can get

Major Breakthrough

This is great news for contractors and a major breakthrough in the specialist contractor mortgage market.

This new contractor mortgages lender is the perfect fit for contractors of any mortgage lender so far.

To find out more from the specialist contractor mortgages broker who negotiated this deal with Bluestone Mortgages simply fill in the form below and someone will be in touch.

Please click on Contractor Mortgage Application and fill in the form there.