Your eligibility to secure a mortgage as a contractor will depend on a number of variables which are specific to the lender and product. Your options for obtaining a contractor mortgage will usually depend on factors such as your individual situation, your credit rating, your daily rate and your reasons for taking out the mortgage.
Although each application is assessed individually according to your specific circumstances, there are some broad criteria which most lenders require. To be eligible for a contractor mortgage, you usually;
Must have a current contract in place;
Must be able to evidence continuity in the work that you do (usually by showing a copy of your current CV where evidences your skills and experience);
Must have a satisfactory credit rating (Although in some cases exceptions can be arranged)
Does my profession hinder my chances of getting a contractor mortgage?
Traditionally, most lenders restricted their contractor policy to specific professions, with many only lending to those working within the IT sector.
However, as the banks are beginning to recognise contractors as reliable and low-risk borrowers, a recent development in contractor mortgage market means that we are now in a position to help contractors within ALL industries with their mortgage requirements.
I have only just started contracting; can I still qualify for a mortgage?
Traditionally, contractors had to demonstrate a substantial amount of contracting experience before they could access contractor friendly underwriting terms. However, thanks to our experience and strong relationships with key contacts within the marketplace, we have been able to successfully negotiate an agreement with a major high street lender which caters for brand new contractors.
Through this agreement, the same flexible options previously only afforded to experienced contractors are now available to contractors working their first contract. The new criteria mean that contractors can now obtain a mortgage from the outset of contracting, subject to their status and credit rating.
What Mortgages can contractors get?
We have several years’ worth of experience in assisting contractors and professionals across a wide variety of circumstances with their mortgage, including: