Many contractors worry about the possibility of not getting a mortgage through the traditional routes, and not qualifying for the best contractor mortgage rates out there.
Contractors benefit from a high degree of flexibility and independence when it comes to their working life – and the numbers of contractors in the UK is increasing every year.
However, despite the many benefits a lot of contractors are unsure where to turn when they want to buy a house and are in need of a mortgage, and so will often jump at the first lender they see which offers contractor mortgages – even though it may not be the best mortgage rate for them.
It’s an easy mistake to make, but our advice to everyone examining their mortgage options is to look at as many different alternatives as possible in order to get the best deal possible for your own personal situation. Particularly in the case of contractors, two situations are rarely the same.
The good news for contractors is that lenders are now offering contractor mortgages which take into consideration more appropriate criteria than a traditional application – often with similar levels of interest rate as well.
Underwriting criteria can (and will) change from lender to lender, but as long as you provide the required documents needed for a contractor mortgage then your rate should not differ greatly from a standard mortgage application.
How to get the best contractor mortgage rates
Increased scrutiny will be given to the technical content of these mortgage applications. While the underwriter reviewing your application may not be an expert in IT or whatever field you are in, they will have a team that knows the difference between a developer, engineer and a manager and what the long-term outlook is for the work you are carrying out.
Ensuring that lenders understand the risk profile of the candidate is a key part of the process, and can be a delicate thing to manage. A good specialist contractor mortgage adviser will have gone through this process time and time again for many years.
In order to get the best contractor mortgage rates, we recommend shopping around various lenders in order to see which one offers the best rate. However, it should also be noted that the lowest rate on the market may not actually be the best for you.
Will I have to pay a premium rate for a contractor mortgage?
Quite often when applying directly to a lender they may charge a premium or a higher rate – depending on what documents you provide and the level of accounts you are able to show. Some may even require you to fork out a higher deposit than normal.
However, when you use a specialist contractor mortgage broker you will be able to get access to standard high-street rates, whether they are fixed rates, tracker rates or variable rates.
Contact us now to find out more about what contractor mortgage rates are available to you.
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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. This fee will depend on 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.