Documents That Are Essential to Secure A Contractor Mortgage

15th May 2019 / in Contractor Mortgages & Protection Blog / by Gordon Hunter, MD

You’ve made the decision to leave the relative safety of a permanent position to become a contractor but are wondering how it will affect your mortgage? It all comes down to your financial status as a contractor. It’s not personal. The mortgage application and approval processes for larger lenders caters for regular employees rather than contractors.

Many mortgage lenders are happy to work with specialist brokers who understand the financial status of their contractor clients. For a contractor, working with contractor specialists provide two key benefits; potentially access to more mortgage products and a dedicated adviser who deals directly with head office, which can help to speed up the mortgage process.

Mortgage lenders tend to request a varied range of information & data from their applicants. Each lender is unique, so there is no guarantee that they will ask for all the documentation below, but it’s still best to have all bases covered. In virtually all cases you will need your CV & a copy of your contractor contract. As well as 3 months worth of personal bank account statements for both your personal & business accounts, in conjunction with a personal ID & proof of address.

Newer contractors will likely need to offer a bit more assurance. You can find out more in the list below. You will also need to provide the lender with evidence that you have enough money to cover a deposit. Whether this be through money you already have saved or by the sale of an existing property.

Contractors will likely have unusual figures within their contracting records critiqued. So it’s best to have an explanation prepared, so read through all your documentation carefully before submission. Here is a list of essential documents you will most likely need to provide to secure a contractor mortgage, in an easy to digest list.

Long term contractor

  1. Suitable ID
  2. Copy of current and previous contract
  3. Copy of CV
  4. Last three months bank statements
  5. If accounts are ready then two years books showing three years figures (not essential but advantageous)

New to contracting and need high Loan to Value (LTV) i.e. 90%

  1. Suitable ID
  2. Copy of contract
  3. Copy of last three years P60s
  4. Last six months bank statements
  5. Copy of CV

New to contracting

At least one day trading as contractor:

  1. Suitable ID
  2. Copy of current contract
  3. Last three months personal bank statements
  4. Copy of CV

At Super Contractors, we specialise in contractor mortgages. Our advisers understand contractors financial status and work with head office underwriters who are contractor friendly. This includes presenting the limited company contractor remuneration model of low salary high dividend to the lender.

For more information about getting a mortgage as a contractor, call 0800 211 8700 or fill out 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 £595 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.

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