Contractors Remortgage
Unlock the Best Remortgage Option for Contractors in the UK
A remortgage for contractors is when you switch your mortgage to a new deal with the same or a different lender. It is for those who work as contractors. This can be done to get a better interest rate, consolidate debt, or release equity. It can also change the mortgage terms.
Contractor mortgages differ from traditional ones. They consider contract earnings, not just PAYE income. They assess affordability using the contractor’s day or hourly rate. This method lets contractors with irregular incomes secure a mortgage. It is based on their gross contract rate.
At Contractor Mortgage Solutions, we help contractors. We find the best remortgage options for their needs.
Remortgaging options for contractors
Many homeowners overpay by sticking with overpriced standard variable rates. This benefits lenders who won’t tell you about cheaper options. Contractors often overlook remortgaging due to their busy schedules and to-do lists. They lack the time or motivation to address high mortgage costs. Banks exploit this. Yet, you don’t have to continue overpaying.
Remortgaging can improve your finances. It can get you better deals. It can reduce monthly payments, consolidate debt, or raise capital for home improvements.
At Contractor Mortgage Solutions, we have vast experience with contractors in all industries. We
understand your situation. You could be a Limited Company, a PAYE Contractor, or an Umbrella worker. This insight helps us secure the best remortgages for you. We will tailor them to fit your true affordability. They often have exclusive terms from our close ties with underwriters.
To explore the best remortgage options, consult our specialist brokers. They can help you access special deals, including competitive interest rates, longer repayment terms, interest-only options, cashback mortgages, and free legal and valuation services.
Limited Company
It’s a business structure where contractors keep their income separate from personal finances. This impacts their mortgage application.
Paye Contractors
Works on a contract basis through an umbrella company or agency. Mortgage applications are based on daily or hourly rates.
Umbrella Companies
It is a third-party firm. It employs contractors and manages their income. This affects mortgage evaluations.
We Operate Based on Your Day Rate
We specialize in securing mortgages for contractors based on their contract earnings alone.
No tax returns, no accounts
We have helped numerous contractors over the last decade to purchase their first homes and investment properties. We work daily with lenders to offer tailored contractor mortgages rarely found on the High street or Online.
We Operate Based on Your Day Rate
We specialize in securing mortgages for contractors based on their contract earnings alone.
No tax returns, no accounts
We have helped numerous contractors over the last decade to purchase their first homes and investment properties. We work daily with lenders to offer tailored contractor mortgages rarely found on the High street or Online.
Use our calculator to estimate your borrowing power
Your Estimated Borrowing Amount
Please note, that this calculator only provides indications of possible borrowings. Contact us for a free bespoke contractor mortgage recommendation.
Ready to discuss your options?
Don’t let traditional mortgage requirements hold you back. Secure your first-time buyer mortgage based on your day rate and achieve your homeownership goals today with us!
Why do contractors seek help with
remortgaging their properties?
Remortgaging is well within your reach, whether you are a new or seasoned contractor. Your affordability is based on your contract earnings, not a salary. It’s your day/hourly rate. Contractors often remortgage to reduce payments and consolidate debt. They want to raise capital for home improvements. They want to use their equity for low-cost funding.
Lenders now require higher loan-to-value (LTV) ratios, usually 15% or more. Global events have made the lending market cautious. At Contractor Mortgage Solutions, we can help you. We can get you a good deal with lower LTV ratios (10% or less). We can get you an even better deal for higher LTVs. We can guide you to a secure financial future. It doesn’t matter if you use a limited company, an umbrella company, or the CIS scheme.
Contractor remortgage process: Less Paperwork, Maximum Results
As a contractor, you will typically need to provide a lot of documents to secure a new mortgage deal. Thanks to our extensive experience, we’ve streamlined this process to minimise paperwork. Send us:
- A signed copy of your contract confirming your daily or hourly rate
- 3 months of bank statements showing your earnings
- An updated CV with your employment history
- Proof of ID (usually a passport, driving licence, or utility
bill)This efficient approach helps us get your mortgage with less paperwork than with High Street advisors.
We will find the best mortgage based on your rate. This will maximize your borrowing power and reduce your repayments.
Contractor remortgage process: Less Paperwork, Maximum Results
As a contractor, you will typically need to provide a lot of documents to secure a new mortgage deal. Thanks to our extensive experience, we’ve streamlined this process to minimise paperwork. Send us:
- A signed copy of your contract confirming your daily or hourly rate
- 3 months of bank statements showing your earnings
- An updated CV with your employment history
- Proof of ID (usually a passport, driving licence, or utility
bill)This efficient approach helps us get your mortgage with less paperwork than with High Street advisors.
We will find the best mortgage based on your rate. This will maximize your borrowing power and reduce your repayments.
Why Contractors Choose Us for Remortgaging?
Client testimonials
Fee Jav
Client
Fantastic service from Mo and his team at Contract Mortgage Solutions. They made my remortgage process easy and efficient. A real pleasure to deal with, and I highly recommend them as great mortgage brokers.
Goretty Dias
Client
Mo is extremely professional and has helped me with new and remortgage transactions over the past 3 years. Contract Mortgage Solutions is efficient, communicative, and resolves issues well. Highly recommend!
Layla De Freitas
Client
Mo and his team have provided our mortgage for 7 years, helping us remortgage 3 times. Mo goes above and beyond with in-depth market knowledge and excellent service, even with our changing plans. Thank you!”
FAQ’S
Can I remortgage my property as contractor if I have bad credit?
Yes, securing a contractor mortgage is possible even with bad credit. However, a poor credit history may limit your options and lead to higher interest rates or stricter lending criteria. We recommend consulting with one of our specialist advisors, as lenders offer tailored products for different credit profiles. Choosing the right lender is essential for a successful remortgage application.
Will I still be able to secure a mortgage if I've had breaks between contracts?
We recommend that all mortgage applicants (whether first-time buyers or those looking to remortgage their property) minimize long breaks between contracts. While most lenders accept short breaks, larger gaps may raise concerns with underwriters. If you have concerns about your contract history, please reach out to one of our specialists for expert guidance.
What is the process for remortgaging?
Remortgaging for contractors involves a few steps tailored to your financial situation.
- Start by evaluating your current mortgage and your remortgaging goals, such as reducing payments, consolidating debt, or accessing home equity.
- Collect necessary documentation, including your contract details.
- Work with a specialist broker who understands the contractor market to find the best remortgage options and rates.
- The broker will manage the application process and negotiations with lenders.
- Once an offer is accepted, finalize the new mortgage terms, and complete the legal and valuation checks.
Your broker will guide you through the entire process for a smooth transition.
Why Do Contractors Remortgage Their Properties?
Contractors remortgage their properties for various reasons, such as reducing monthly payments, consolidating existing debts, or accessing home equity for major expenses like home improvements. By remortgaging, they can potentially secure better interest rates or adjust their mortgage terms to better fit their financial situation. This process allows contractors to optimize their financial management and take advantage of new opportunities or alleviate existing financial pressures.
What are the other charges you have to pay when remortgaging?
When remortgaging, there are several additional charges to consider beyond your new mortgage payments. These may include:
- Arrangement Fees: Lenders often charge a fee for setting up your new mortgage, which can vary depending on the product and lender.
- Valuation Fees: To assess the current value of your property, a valuation may be required, and this fee is usually covered by contractor requesting morgage.
- Early Repayment Charges: If you are remortgaging before the end of your current mortgage term, you might incur charges for paying off your loan early.
- Exit Fees: Some lenders charge a fee to close your existing mortgage account.
It’s important to factor in these costs when considering a remortgage to ensure it aligns with your financial goals.
Do I need to pay additional property tax?
In the UK, remortgaging itself does not typically incur additional tax. However, there are some scenarios, mainly linked to investment properties, where additional tax might be applicable. In such situations, it’s best to consult an experienced broker or tax specialist.
How much I can borrow and what will be my monthly payments?
This varies greatly depending on your circumstances—individual lenders use many factors to calculate your borrowing capacity. Use our calculator as a rough guide, but call us for a more accurate figure:
What will be my mortgage interest rate?
The mortgage interest rate depends on multiple factors, including the interest rate set by the Bank of England, your credit score, down payment, loan-to-value (LTV) ratio, and the loan term. Consequently, the interest rate varies for each individual. However, with our experience and strong relationships with contract-friendly lenders, we can find the best deal tailored to your needs.