4 Times When You Should Remortgage as a Contractor

5th July 2019 / in Contractor Mortgages & Protection Blog / by Gordon Hunter, MD

Remortgage when the situation is at its most advantageous. While you don’t have to stay with the same lender for the duration of your contractor mortgage, don’t just switch to free up extra cash for holidays or to acquire that new spandex superhero suit you’ve been admiring. Instead make an informed decision where there is a distinct advantage, such as the following…

  1. When You Have Equity Power

How much of your headquarters have you paid for? The equity you’ve paid for and the bank own the rest. The proportion known as the “Loan to Value” ratio (LTV). The lower the LTV and the higher your equity, then the better your updated contractor mortgage deal is likely to be.

  1. When Fixed Term End is Fast Approaching

If you’re on top of your financial forecasting, you should be up to speed with your current mortgage terms. If you have an introductory deal on your current contractor mortgage, then know when it is coming to an end. If your lender is moving you to a standard variable rate (SVR), then you’ll want to consider what other options may be available – either from your existing lender, or whether a remortgage may be more advantageous if the commencing SVR is more than you’re paying right now.

Also, take into account whether you will incur early repayment charges if you redeem your existing mortgage early. Remember, you don’t have to stick with the same lender! Our expert mortgage advisers at Super Contractors can recommend cost effective remortgage deals. We’ll look at what fees/charges that could be charged by the lender for switching. We’ll look at what’s most cost-effective for you, ensuring you’re getting the most suitable offer going.

  1. Holy Low Interest Rates, Batman!

The Bank of England base rate remains relatively low at 0.75%. [1]

Lenders are already competing with each other with attractive mortgage deals. Get your timing right and you could lock into a super low rate for a contractor remortgage on your current property.

  1. Your Contractor Mortgage Application is Fighting Fit

They’re many lenders who are only allies if you have been contracting for at least 12 months. However, they’re specific contractor remortgage deals with major high street lenders who will consider (subject to terms) a day one contractor.

Our expert mortgage advisers at Super Contractors would also recommend that remortgage applications should be submitted at least four weeks before the end of your current contract. This is because the lender will want to know what your next contract is going to be. If you don’t get a new contract at least four weeks out, it may still be possible, but it’ll be a trickier task.

Who to signal for?

For specialist advice about remortgaging as a contractor, contact Super Contractors. Freephone 0800 211 8700 or fill in our online enquiry form.

Your home may be repossessed if you do not keep up repayments on your mortgage.

This firm charges a fee of up to £395 for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.

Lifetime Finance Group Limited trading as Super Contractors is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.


  1. Bank of England base rate held at 0.75% – Mortgage Strategy, February 2019 – https://www.mortgagestrategy.co.uk/bank-of-england-base-rate-held-at-0-75/

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