Mortgages for Contractors

Mortgages for Contractors

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Mortgages for Contractors

Mortgage lenders can sometimes be a little more reluctant to offer mortgages to contractors and freelancers, as they don’t have the security of a guaranteed salary provided by an employer. However, there are lenders who will offer mortgages to contractors that have rates similar to those offered to traditional employees.

Mortgage applications for contractors are assessed in differently from traditional mortgage applications. Instead of looking at traditional forms of income assessment, lenders will use underwriting criteria specifically for the contractor and freelancer community. A normal mortgage application will be assessed on the basis of your salary – which meant that, in the past, many contractors faced difficulty securing the mortgage they wanted. A contractor mortgage application however, is examined on the basis of your gross contract rate. A mortgage lender will assess a contractor mortgage application on a case by case basis, using a combination of factors which might include:

  • Your contract rate
  • The duration of your current contract
  • How long you have been working as a contractor

To find the best contractor mortgage deals, click on the FREE mortgage calculator above and compare over 5,000 deals tailored to your personal requirements.

Tips for finding mortgages for contractors

  • Find a specialist contractor mortgage broker  – a mortgage broker that is used to working with contractors could help you to get the best deal available.
  • Aim for a high deposit if possible – the higher the deposit you can put into a property, the less risk the lender is taking on. This can mean lower rates for buyers.
  • Check your credit score  – this is important for all mortgage borrowers, but it’s especially important for people seeking a contractor mortgage as it reassures the lender that you have a good history of making repayments.
  • Gather all your documentation  – most importantly, you will need an up-to-date copy of your contract, indicating your payment rate for the work as well as its duration. This gives lenders a clearer picture of your income. You may also need to show your accounts for the past few years, although this is not always required, so check with your chosen mortgage provider.

Virgin Mortgage – 2 Year 75% LTV

HSBC – 2 Year Fixed Deal

  • Initial Rate – 1.24%
  • 75% Loan To Value (LTV)
  • 2 Year Fixed
Overall cost for comparison 3.30% APRC

Click here for more details

   
Offers

RBS Buy to Let Mortgage – 2 Year 60% LTV

RBS – Buy to Let 2 Year Fixed Deal

  • Initial Rate – 1.39%
  • 60% Loan To Value (LTV)
  • 2 Year Fixed

Overall cost for comparison 4.50% APRC

Call RBS FREE on 0800 096 7962

 

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE