If you’re a contractor looking to move to a new home, you’ll need a home mover mortgage designed specifically for your unique financial situation. Unlike permanent employees, contractors are often considered higher risk by mortgage lenders, which can affect the home mover mortgage UK options available to you.
In this guide, we’ll break down everything you need to know about home mover mortgages for contractors, helping you secure the best deal for your next property.
How much I can borrow calculator
Mortgage Calculator
What is a Home Mover Mortgage?
A home mover mortgage allows you to move from one property to another while either keeping your existing mortgage or arranging a new one. This type of mortgage is ideal if you’re upsizing or downsizing and already have an existing mortgage. Contractors can face challenges in securing a home mover mortgage due to their fluctuating income, but with the right advice and guidance, this doesn’t have to be an obstacle.
If your current deal is portable, you might be able to transfer it to your new property. Contractor mortgage brokers can help assess if porting is a viable option for you, allowing you to keep your existing rates and terms.
How Much Could You Borrow as a Contractor?
When applying for a home mover mortgage as a contractor, the amount you can borrow depends on several factors, such as your income and financial stability. Contractor mortgage lenders often take a conservative approach when assessing contractors due to the nature of self-employment.
Historically, lenders multiplied your income by a fixed number to determine your loan size. Now, they may look at your rental income, credit score, and financial profile to make a more informed decision. This is why getting contractor mortgage advice from an expert is crucial.
Many contractor mortgage brokers provide online mortgage calculators, which can help you estimate how much you could borrow based on your income and credit history. Knowing this information early can simplify your planning process and give you a clearer understanding of your budget.
Best Practice for Your Home Mover Mortgage
Contractors often find it challenging to secure home mover mortgages because lenders may not consider all income sources, particularly if you operate under an umbrella company or have retained profits in your limited company. These income structures can result in a shortfall in borrowing compared to permanent employees with similar salaries.
To improve your chances, follow these best practices when applying for a home mover mortgage:
- Provide full documentation of your income, including contracts, payslips, and bank statements.
- Be ready to explain your self-employment status clearly.
- Work with a mortgage broker for contractors who understands your financial situation and can find the best deal for you.
By doing so, you will increase your likelihood of securing a mortgage that suits your needs.
Contact Us for Expert Mortgage Advice
At Contractor Mortgage Solutions, we specialize in helping contractors secure the best home mover mortgage deals. Our experienced team understands the unique challenges faced by contractors and can help you navigate the mortgage process with ease.