Tag Archives: Contractor Mortgage Options

Contractor Mortgage Options
There is a much wider variety of contractor mortgage options nowadays than there has ever been.

Indeed the mortgage options seem to increase for contractors on a weekly basis.

More and more banks and building societies want to get into this lucrative market.

[caption id="attachment_625" align="alignnone" width="259"] Contractor Mortgage Options to get the best offers and best interest rates[/caption]
Contractors Keep up Monthly Payments
The reason that they want to get into the contractor maortgages market is that, in general, contractors keep up their monthly payments even when they are out of work.

They don’t default on their mortgages either.

Indeed their rate of default is lower than in the general marketplace.

That is why the specialist contractor mortgage brokers are able to get contractors interst rates lower than in the marketplace in general.
Loaning Contractors Money
Those contractors who went before us, and kept up their payments, have now created an atmosphere conducive to loaning money to contractors.

Not every bank or building society makes contractors good loan offers.

[caption id="attachment_609" align="alignnone" width="205"] Doctors Seeking Contractor Mortgage sat best rates[/caption]

That is why it is imperative that contractors use these specialist brokers to get the best loans and the best deals from lenders.

Contractors, who are looking at their contractor mortgage options, who don’t go this route can miss out very badly.
Contractors Seeking Mortgage Loans
When contractors are seeking a loan they should check if:-

They can use their contract as proof or if they have to provide several years worth of accounts
The mortgage offer is based on their Director’s salary or their daily rate annualised

Those two questions will let contractors know if it is a contractor friendly mortgage lender or if it isn’t.

The answer should be that they can use their contract as proof and that the mortgage offer is based on their daily rate annualised.

They can then proceed.

[caption id="attachment_600" align="alignnone" width="204"] Your contract rate will determine your mortgage offer[/caption]

Contractor Mortgages for Umbrella Company Contractors

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Umbrella Company Contractors getting Mortgages

Umbrella Company Contractors

Can specialist brokers get mortgages for umbrella company contractors?

Specialist contractor mortgages broker Tony Harris has been getting contractors mortgages for years without them having to produce three years worth of accounts as a high street bank would ask for. He can also get the offer based on their daily rate rather than a multiple of their Director’s salary.

He started with getting mortgages for IT Contractor more than ten years ago. Previously contractors found it difficult to get mortgages because they didn’t have regular monthly income like a permanent employee.

Mortgage Lender

However, Tony talked a lender into taking a chance and give contractors mortgages. The contractor paid up their mortgages monthly and didn’t default.

This gave Tony greater credibility with the lenders. So, he was able to get more and more mortgages for contractors. This has benefitted many, many contractors in the last 10 years.

However, can he also get specialist contractor mortgages for Umbrella Company contractors? We put it to him.

We asked “Tony, do you cater for Umbrella Company contractors as well as Limited Company contractors? What info do they have to supply and is easier or harder to get them mortgages?”

Contractors Mortgages

He replied “We use a multiple of contracts irrespective of whether you are a ltd company owner or if you contract through an umbrella company.

“The only difference is that additional evidence is needed to support your application by way of your payslips. It is no harder to secure a mortgage for umbrella company contractors, as long as you have a signed copy of your current contract”.

So it looks as if those specialist contractor mortgages are available to Umbrella Company contractors just as easily as they are to Limited Company contractors.

To get further information or to apply for a mortgage, fill in a form here and Tony will get back to you:- Contractor Mortgages

Contractor Mortgage Options for UK Contractors

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Contractor Mortgage Options now

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