Contractor Mortgages

If you’ve been searching for information on contractor mortgages then you have come to the right place. The information elsewhere can be vague, confusing, and even false when it comes to contractor mortgages. For all you need to know about contractor mortgages just read more:

To start let’s discuss what a contractor mortgage is and how it differs from other mortgage products. A contractor mortgage is a mortgage product obtained by a borrower who is in a contractor or freelancer type of employment. The lender of the contractor mortgage will base their decision on a combination of specific factors that are unique to the borrower to make a decision on whether to approve an application.

The factors considered are:

Contract rate of the borrower

Duration of the existing contracts held by the borrower

Retained profits

Length of time the borrower has been a contractor or freelancer

It is important that it is understood that a contractor mortgage is reviewed on a case by case basis by the lender. This is different than a self certification mortgage application which would be judged under a policy ruling that would fit all applicants or a kind of "one size fits all" mortgage review. A contractor mortgage application is unique in that it is individually considered on its own merit.

It is called a contractor mortgage because it is routinely the type of mortgage that best suits a person who makes a living by means of contracted work. Therefore the uniqueness of that type of employment requires a unique review of the income. This mortgage type was designed to better suit these specific types of workers when they sought to borrow for a mortgage.

Anyone can apply for a contractor mortgage. You do not have to be a contracted worker to qualify. There is no criteria as to who can or cannot apply, the distinction comes from how the contractor mortgage is reviewed and processed. It is often a considered mortgage type by first time buyers, those with poor credit ratings, new business owners, and others that do not have a lengthy employment history required by other types of mortgage products. It should be noted that this therefore disputes the notion that a person must have 3 years of business records before applying for a mortgage.

Contractor mortgages should not be any more expensive than mortgages that are obtained by a full time employee. This is where seeking the assistance of a broker that has experience working with contractor mortgages can be beneficial. They will have in depth knowledge as to which lenders have a more favorable view toward contractor mortgage applications. An experienced broker will also be able to make sure the lending rate is fair and usual to your situation when looking for which deal is best.

Since you are interested in a contractor mortgage, it should be comforting to know that we are indeed experienced and knowledgeable about this unique type of mortgage product. We are also approved by the Financial Services Authority to not only give professional advice on contractor mortgages but also assist you in applying for and obtaining one from an appropriate lender. If you would like to apply for a contractor mortgage or have further questions call us and we will be happy to assist you.