Frequently Asked Question

 

What is a Contractor Mortgage?

A Contractor Mortgage is a home loan designed specifically for contractors and freelancers who may not have traditional payslips or a regular income. It takes into account various income structures, including day rate and hourly rate contracts, to help contractors secure a mortgage for their dream home.

Who Qualifies for a Contractor Mortgage?

Contractor Mortgages are available to a wide range of contractors, including those working through limited companies, umbrella companies, or as sole traders. Qualification criteria may vary among lenders, but many consider applicants with a minimum of 12 to 24 months of contracting history.

What Are the Benefits of a Contractor Mortgage?

Contractor Mortgages offer several advantages, including:

  • Flexibility in income assessment.
  • Competitive interest rates.
  • Access to a range of mortgage products.
  • Opportunity for self-employed individuals to own a home.
How is Income Assessed for Contractor Mortgages?

Income assessment for Contractor Mortgages varies by lender. Some consider gross contract value, while others evaluate the average of the previous year’s earnings. It’s essential to work with an experienced mortgage advisor to find the right lender for your income structure.

Can First-Time Buyers Get Contractor Mortgages?

Yes, first-time buyers who are contractors can apply for Contractor Mortgages. Lenders typically require a minimum contracting history of 12 to 24 months and may have specific criteria for first-time buyers.

What Documents Are Required for a Contractor Mortgage Application?

Commonly required documents include proof of identity, proof of address, contract documentation, evidence of work history, financial documentation (bank statements), and property purchase documentation (if applicable). Your mortgage advisor can provide a detailed list.

Are Contractor Mortgages Available for Self-Employed Individuals?

Yes, Contractor Mortgages are an excellent option for self-employed individuals, including sole traders and freelancers. Lenders assess your income based on your contracting history and financial stability.

How Can I Improve My Chances of Approval?

To increase your chances of approval, consider the following:

  • Maintain a stable contracting history.
  • Manage your finances responsibly.
  • Work with an experienced mortgage advisor.
  • Ensure all required documents are accurate and up-to-date.
Can I Re-mortgage with a Contractor Mortgage?

Yes, many contractors choose to re-mortgage their homes to access better interest rates or release equity. The process is similar to obtaining a new mortgage, and it allows you to better manage your finances.

How Do I Begin the Contractor Mortgage Application Process?

You can start the application process by contacting Contractor Mortgage Solutions. Our team of experts will guide you through the entire process, from assessing your eligibility to finding the right lender and helping you secure your contractor mortgage.

Contact Information:

Phone: 020 3827 8558

Address: 31, Metro Centre, Dwight Rd, Northwood, Watford WD18 9SB