Provided you are presented correctly there are several High Street Lenders who are comfortable working with contractors. Once a Lender has been sourced, the mortgage scheme and rate you would have access to is the same as if you were permanent staff.
Whilst putting down a larger deposit generally gives you access to lower rates, contractors are able to borrow with the same deposit levels as those in permanent employment. Most Lenders will offer options with deposits as low as 5% but a discussion with a Broker is key to decide what is best for you.
There are options available from day one of your contracting career. Quite often sector experience is more important than how long you have been contracting. When it comes to term remaining on a contract, this could be a little as 1 month, but everything is assessed on a bespoke basis. We would always advise you engage with a specialist contractor broker as early in the process as possible to understand how your personal situation will be assessed.
If a lender was assessing you, as self-employed then it would be highly likely that affordability would be assessed on your company accounts. Most Lenders will look for a track record of 2-3 years and look at averages of your taxable income e.g., salary and dividends. A contractor friendly Lender will be willing to look at your ability to service the mortgage debt based on the value of the contract being worked.
The time taken for any mortgage application is based on two factors. How well the application is presented to the Lender and the Lender’s turnaround times. A specialist Broker will ensure all the hard work is done before the application is sent to the Lender. The correct Lender will have been chosen, all the required documents would be gathered and pre-agreement would be gained before the application is submitted. We often find our applications are quicker than those who are permanently employed.
To find out more visit https://www.cleerly.co.uk/ or call the team on 02394 212912.
