MORTGAGES
Contractor mortgages
- You'll experience an unrivalled customer service
- cContractor Mortgages, We offer a comprehensive range of products from across the market but not deals that you can only obtain by going direct to a lender.
- You can contact us 24/7, we're always available to help
Your home may be repossessed if you do not keep up repayments on your mortgage.
How to get a Contractor Mortgages?
Although there is no particular mortgage product intended for contractors, many lenders have now adapted to give contractors more access to mortgages, due to a continued rise in contract and freelance work with Contractor Mortgages
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Some specialist lenders offer dedicated mortgage deals to those working as a contractor in professions such as doctors, dentists, and teachers.
How much can a Contractor borrow for a mortgage?
The fact that you are a contractor alone, should not affect the amount of the mortgage loan you’re offered. The main factor in calculating your loan value is affordability. This will be gauged by subtracting your expenditure from your typical annual income.
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As a guide, most lenders are willing to offer a loan of around four and a half times your annual income however this varies greatly from lender to lender and your personal circumstances. We can help you to calculate what lenders will be willing to lend you based on your contractor income arrangements.
How is a Contractor’s income assessed for a mortgage?
As a contractor, the likelihood is that your earning will be sporadic. Lenders need a stable figure to calculate your loan and will therefore usually use an average of your earnings over a few years. Many lenders will also want information on your working history, alongside your SA302 form in order to establish a clearer picture of your long term earning potential. The length of time in your current contract, how often it has been renewed and how long remains on the contract can all be factors that can impact how much a lender would be prepared to lend to you.
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If your income varies dramatically from year to year, lenders will sometimes just use the most recent year’s earnings or the lowest of the two for their calculation. Unfortunately, this means that you might be able to borrow less than someone with a more stable income.
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It’s possible to find competitive mortgage rates for contractors with some lenders. The best rates will be obtained from those lenders who are more sympathetic to the needs of contractors. These are more likely to be independent specialist lenders than those on the high street.
Getting a mortgage when you are paid a day rate?
Contractor friendly lenders are often willing to use your standard day rate, multiplied by your annual working days in order to establish an average annual income. You will ordinarily need to demonstrate that you have at least a twelve-month contract in place, in order to benefit from this method.
Getting a mortgage as a new Contractor
It can be more difficult for those new to contracting to secure a mortgage, as mortgage lenders will struggle to define your long term earning potential. Most contract workers will need at least two years of accounts available before they are considered for a mortgage.
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There are some professions in particular where a lack of accounts is overlooked by lenders. A qualified doctor, for example, can sometimes obtain a mortgage before their first contract has begun.
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Some contractor schemes, such as the CIS (Construction Industry Scheme) may have more standard options as may be treated as employed by some lenders.
How do you strengthen your mortgage application as a Contractor?
Lenders consider contractors to be particularly high risk, therefore anything that you can do to improve the appearance of your finances before you apply for a mortgage, will increase your mortgage options.
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Some things you could do to enrich the trust of a lender are:
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- Offer a larger deposit where possible
- Obtain documented contractual agreements with your clients where possible
- Ensure that you have strong financial management, preparing full income and expenditure records ahead of your application
- Take steps to improve your credit score where necessary
- Ensure there are no significant gaps in employment (including holidays) between contracts, in at least the year prior to your application
- Apply for a joint mortgage with a partner in more traditional employment (PAYE)
- Consider using a guarantor on your mortgage application
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Some Buy-To-Let Mortgages are not regulated by the Financial Conduct Authority.
How mortgage affordability is assessed for a Limited Company?
Those contractors operating as limited companies will experience a slightly different application process. Unlike sole traders, only your salary and dividends will be used to establish your affordability and therefore calculate your loan amount, rather than the total business income. There are certain lenders able to use share of net profit instead of dividend if you have been leaving money within the business as retained profit.
How can Mortgage Matchmakers help if I’m a Contractor?
More traditional high street lenders, such as banks are rarely able to offer the most competitive mortgages to contractors. They also tend to have stricter criteria to satisfy. As Mortgage Brokers we can provide you access to specialist lenders who are better placed to help contactors and offer them competitive interest rates.
We can assess your individual circumstances in order to determine whether your application will be accepted and can advise you on how to improve your chances, if necessary. This can save time, stress, and lasting issues caused by rejected mortgage applications.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
Some Buy-To-Let Mortgages are not regulated by the Financial Conduct Authority.
Happy Clients
Sharmila Rumpa2024-05-28Excellent and professional service, wanted to call out Bhavna Gover especially, she helped me to sort out a Ltd Company buy to let mortgage. She's very thorough in her work. Please ask for Bhavna if you need a mortgage in future, she will be happy to help for sure.
Kash Anis2024-05-23We approached Mortgage matchmakers regarding to get an options as we alreday tried few brokers before.Mohit introduced Bhavna which helped us out through out our journey.We felt it was difficult as our situation was bit tricky, but Bhavna worked out the best resoultion and sort this out. We have no words to say thank you, as it was amazing support from Bhavna and got the mortgage offer. Bhavna was fantastic,friendly and very passionate person, she is very professional Mortgage Advisor. Once again I would like to say Thanks so much for helping through out my journey to get mortgage for my new house.
Larushhh O2024-05-18It was a pleasure working with Paul over the last few months with my remortgage. He took away the stress of remortgaging with his professionalism and patience till the deal was finalised. I highly recommend him as a broker. Thanks for your support and help once again.
Aromes Bienmaison2024-05-15Paul was very helpful and provided a great guidance throughout the whole process
Shalaka2024-05-14We couldn't have asked for a better mortgage advisor! Mohit has been an absolute asset, always there when we had a question, and believe me, we had plenty! Being first-time buyers, his guidance was invaluable. What we appreciated most was his honesty and the fact that he never made us feel rushed into any decision. We're still in the process, but we already feel confident with his support. Totally recommend him to anyone in need of mortgage advice!
Dinesh Johnson2024-05-13Mohit was simply brilliant and helped us to understand all the options available in the market and choosing the best and importantly the right product for our need. Mohit is very efficient, he goes out of his way to help his clients and keep his client’s interest at top of his priorities. He was very professional and knowledgeable, would certainly don’t think twice to get his service in the future. I would highly recommend him to anyone who needs advice and support in sorting their mortgages. Thank you soo much Mohit for your hard work and support in sorting our both residential and BTL mortgages! Tharaka & Dinesh
Bagya P2024-04-30If anyone looking for hassle-free mortgage process, then I would suggest to discuss with Mohit. Mohit explained the process more in detail, assessed the situation very well and gave perfect suggestions to get the process done. Also, he closely connected with Solicitor and made the whole process easy. Additionally, I would like to thank Bhavana for her exceptional work. She tried many options to get the better deal from different Vendors. She explained all my queries on time and appreciate her professionalism. Thanks a lot once again Mohit and Bhavana for all your support.
Oliver Harris2024-04-24Mohit was a great help with finding my first mortgage. He talked through all options clearly and found the best deal to suit my needs. I'd thoroughly recommend using his services.
Veronica Ihonor2024-03-03The team was very professional with spontaneous delivery in line with agreement. Well done guys
Ogechi Eke2024-01-14If you’re looking for a professional mortgage broker who actually goes above and beyond his role then look no further. Ankur Daru is your main man. He is extremely helpful and knowledgeable. Even when the interest rate dropped for my lender, without prompting, he sent me an updated deed. There are so much more I could write but I’ll sum him up in a few words: Professional, knowledgeable and helpful. Thank you for securing the deal for me Ankur! I look forward to the next one! Ogechi