Contractor Mortgages Broker
While there are no such specific mortgages for contractors, certain lenders are highly sympathetic, understand how many contractors are paid, and take a “common-sense” approach to this type of borrower.
Of course, they will undertake due diligence of each borrower as they will be looking for gaps in income and seasonal trends on which to base their lending decision. A lender will build a historical picture of a contractor and review past contracts, whether their industry remains the same, and if they are on a daily rate. Additionally, a contractor could be a professional; we recommend taking a look at our Professional section here if so.
We will work with your qualified accountant to ensure you stand the best chance of securing a mortgage with the most favourable terms. Being self-employed doesn’t have to be negative as a mortgage borrower. Whether you are a first-time buyer or a home mover, we would love to help you move.
Completing the form opposite or calling us is your first step to mortgage success. If you would prefer to furnish more information to us then we would love to offer you a personalised illustration. Click here to go straight to this form.
Contractor
What Makes Us Unique
- We will never charge a broker fee
- Whole of market advice
- Access to exclusive rates often not available on the high street
- Immediate appointments available
- Use us online via Teams or over the phone
- At times which will suit you
- Hassle-free and stress-free
What Is the Difference Between Being Classed as Self-Employed or a Contractor When Securing My Mortgage?
Whilst you can be self-employed simultaneously as a contractor, many lenders will calculate mortgages for a contractor in a different and more efficient manner. As a rule of thumb, if you have one source of income, which could be a daily rate, so long as there is a guaranteed income, then specific lenders will class you as a contractor and use your present contractual income to calculate how much they would lend to you – this can be far better than the calculation for a self-employed mortgage client who needs to rely on historical earnings (see https://conranfinancial.co.uk/self-employed-mortgages/)
I Am a Contractor, but My Limited Company Is Paid for My Time. Can I Still Get a Mortgage?
We suspect you have a limited company for its tax advantages, which makes sense. Many lenders will wish to see company accounts and calculations, but it is workable that specific lenders will take a common-sense approach. If your contract is time specific and guaranteed and you have longevity in the type of work undertaken, then you could have options based on the existing contract. It would help if you spoke to an experienced mortgage broker who understands how a contractor is paid.
I Work on a Daily Rate. How Will a Lender Calculate How Much I Can Borrow?
This is lender specific and dependent on the history of the work you specialise in. We have recently successfully placed a mortgage for a contractor who was only three months into a new contract. We showed they had over a year’s previous experience in the specific work they were contracted to do, which convinced the mortgage underwriter to sign off on the mortgage. The lender based their maximum advance on working 48 weeks at the daily rate, in other words they assumed the contractor would take four weeks off during the term.
What Deposit Do I Need as a Contractor?
There is no difference between traditional lending and lending to a contractor. Realistically, you would need a minimum of a 10% deposit, but a higher deposit could cause higher success in securing a mortgage and cheaper rates.
Do I Need a Specific “Contractor Mortgage”?
No, because there is no such thing as a “contractor mortgage”; instead, some mortgage providers are available to all employment types but sympathetic to those in contractor roles, such as you!
What Is the Minimum Period I Have to Prove I Have Been a Contractor For?
Historically, with experience in the same role, you would have had to serve six months of an existing contract. However, some lenders are sympathetic to the growing trend of contractors and, believe it or not, underwriters can take a common-sense approach, as we identified earlier, by gaining success for a contractor three months into a new contract! Each contractor is different, so consider the experience of an independent mortgage broker to research and execute this mortgage for you
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What Will You Need From Me to Be Considered for a Contractor-Friendly Mortgage?
An expert broker will undertake a comprehensive fact-finding mission. Aside from the standard information on income, expenditure, credit history, and address history, they will want a complete understanding of your historic professional life, previous contractor roles and the current contractor role you fulfil. Detail is crucial as an Independent mortgage broker will wish to present your mortgage case in the most favourable light, as this is the difference between success and failure.
How Can Conran Mortgages Help With My Contractor Mortgage?
As contractors and freelancers grow in popularity, it is essential we Independent mortgage brokers must fully understand your working pattern. We will then build a positive case and present this to the most suitable lenders. This could be high street, but the more complex cases will probably need to be with specialist lenders whose underwriters have more flexibility.
Conran Mortgage has always been a fee-free broker. We know many brokers charge expensive fees, especially for complex cases, but we do not discriminate; whether our client has an easy mortgage to place or a challenging one, we remain committed to our fee-free guarantee. You can complete a form, and we will be in contact – you can do that here