Contractor Mortgages

Contractors can get specialist contractor mortgages in several ways.

1.  They can walk into a high street bank and ask for one.

2.  They can walk into a building society and ask for on.

3.  They can contact a specialist mortgages broker.

If they plumped for numbers 1 and 2 they would be making a huge mistake.

High Street Banks and Building Societies

Lenders would tell them:-

1.  That they would need to produce three years worth of accounts as they don’t have a permanent job. Contractors are seen as a risk by high street banks and building societies. The reason is that they don’t have regular income, to their minds.

2.  They would make any mortgage offer based on the contractor’s Director’s Salary. As with most contractors, that doesn’t amount to much as they like to take more of their income in dividends rather than salary.

Specialist Broker

So, the best way, by far, for contractors to get mortgages is to contact a specialist mortgages broker.

Tony Harris is an example of one of these.

He has been getting IT Contractors mortgages for more than ten years. He can now get any contractor, or freelancer, a mortgage.

So, how does he do this?

Building Credibility

Well, more than ten years ago he managed to talk a lender into giving contractors mortgages. Of course, they were suspicious. However, it was a potentially lucrative market, so they dipped their toes in the water.

The contractors given mortgages made regular repayments and didn’t default. So, this gave Tony tremendous credibility. Therefore, he was able to get more and more lenders to let contractors have specialist contractor mortgages.

So, nowadays, he can often get contractors mortgages at better rates than their employee equivalents would get. That’s down to previous contractors, who were given contractor mortgages, paying up.

Better Mortgage Offers

It’s even better, though.

Tony can get contractors mortgages:-

1.  Just on production of their contracts rather than having to produce three years worth of accounts.

2.  With an offer based on the contractor’s daily rate annualised. So the offer would be based on their Weekly Income x 48 x 4.

With the Government’s new Help to Buy scheme they can get contractors 95% mortgages.

They have even been able to get new contractors mortgage offers on the very first day of their very first contract. It usually takes 4-6 weeks to get the keys to the dream house. However, they managed to get one new contractor into his dream house within 2 weeks of starting his very first contract.

That’s some going.

Applying for Mortgages

So, if you want to find out more see Specialist Contractor Mortgages

To apply for one of those specialist mortgages see Contractor Mortgages Application