Can a Contractor Get a Remortgage?

Applying for a remortgage should not be any more difficult for a freelancer or contractor than it is for anyone else that would be applying for a remortgage. It is true that some will complain that they have failed or they have had difficulty but it is usually because they failed to seek assistance that could have helped. When it comes to a contractor remortgage it can be a more simplistic and successful experience to first seek a broker. A broker that has knowledge of how to package an application to a lender that will give them exactly the information they are interested in and one that knows which lenders are more favorable to a contractor remortgage application.

Most contractors pay themselves through their company a minimum salary and restrict their dividend payments to avoid putting themselves into a higher tax rate. This of course means that their income would be viewed by most mortgage lenders as lower than their actual earnings potential. That is why it is important to have the assistance of a broker that has expertise with contractor remortgages. The expert contractor remortgage broker would know to approach a senior underwriter that is used to working with contractor mortgages and present not only personal earnings but also retained earnings held within the company due to tax planning practices.

When working with a broker that has expertise in the contractor remortgage area of lending, they will have the knowledge on how to correctly package your application, which lenders to search through for the best deal and how to help secure you a remortgage with a good rate. Your broker will seek a lender that will give you a mortgage offer that is a multiple of your contractor rate, usually 4 to 5 times the rate.

This is a key aspect, for it gives a true reflection of the income situation of the borrower.

It should also be noted that a new contractor should not be concerned with providing 2-3 years of account records. That is a myth that often keeps many that could apply for a contractor remortgage away from lenders. If you are a new contractor then it will benefit to have the expertise of a contractor remortgage broker. The experience of knowing which lenders will be more favorable to a new contractor would help in this instance. You may only make one application in many years and yet that broker will do many a day. The experience in this situation is invaluable.

Because a good broker will be essential when working toward a contractor remortgage you should take great care in choosing one. Here at we have a successful track record in assisting contractors with their mortgage needs. It is a specialized area of the remortgage market and we have grown to be highly considered when it comes to helping contractors due to our high success. We are approved by the Financial Services Authority as having the ability to professionally assist you when it comes to contractor remortgages and you can be assured that means from advice to securing the remortgage and everything in between.

Another benefit of working with a contractor remortgage broker is that they will save you from the negative aspect of working with the wrong lender. It can be discouraging for a contractor to work with a high street lender who is unfamiliar with the unique aspects of a contractor remortgage. A contractor could miss out if they work for weeks with the wrong lender for their specialized needs only to be denied.

Working with the right broker will alleviate the stress that could occur otherwise. The contractor remortgage broker will be an essential part of your team in obtaining a remortgage now that lending is constricted in today’s market.

Contractors should not be discouraged in applying for a remortgage, nor should they settle for a self-certification remortgage with higher rates. Getting a contractor remortgage is possible and the way to be successful is to have the right broker working with you that understands contractor remortgages. Your credit rating should not be bogged down by denial after denial as you attempt to find the right lender. Instead, working with a contractor remortgage broker can get the job done right the first time and assist you in getting what you really want and that is a remortgage at a good rate.