Guide to IT contractor mortgages
Posted May 1, 2013
If you're an IT contractor, you may well have had problems trying to arrange a mortgage in the past.
Some mortgage providers seem to have a bias against contractors and freelancers, or insist you produce three years accounts before doing business with you. The credit crunch, and recession which followed it, resulted in most financial services companies tightening their lending criteria.
Not only were 'self cert' mortgages outlawed, but larger deposits are now necessary to secure the best rates, and lenders are more thorough than ever when processing mortgage applications.
Top contractor mortgage tips
1. Always use a contractor specialist (see more information below). Niche mortgage advisors will have strong relationships with lenders who understand how contractors operate, and know the difference between permanent employees and contract workers.
2. Don't look solely at the headline interest rate on mortgage products. More and more mortgages now carry introductory fees, as well as Early Redemption Penalties. The combined effect of such extra fees will be to increase the interest rate over the mortgage term.
3. Following the credit crunch, you will need to find a substantial deposit in order to secure the best mortgage rates. Although mortgage lending restrictions have eased somewhat over the past year (2012-13), you should ideally provide between 15% to 25% of the property purchase price.
4. Mortgage lenders have never subjected applications to more scrutiny, following the sub-prime mortgage disaster of 2007-8. Make sure you can provide accurate, up-to-date limited company accounts and/or HMRC self assessment tax calculations.
5. Check your credit record with one of the leading credit reference agencies (such as Experian or Equifax) before applying for a mortgage. Have you kept payments on outstanding credit accounts up-to-date, and do you appear on the Electoral Roll?
Contractor mortgages - why you should use a specialist
Our financial services partners, Contractor Financials, deal only with contractors and have access to the best contractor mortgage offers in the market. They have providing advice on contractor mortgages and other products for over a decade.
Using their network of contacts within the mortgage industry, and many years of expertise, they can access the most competitive 'high street' mortgage deals
The Contract Eye team has worked very closely with Contractor Financials since 1999. We've recommended their services to literally thousands of other contractors over the years, and have used their services ourselves.
If you're looking for your first home, re-mortgaging, buying as an investment, or any other reason, we can help, simply fill in the IT Contractor Mortgage enquiry form below, and the team will be in touch shortly.
IT Contractor Mortgage Enquiry Form(fields marked * are required)...
Financial advice is provided by ContractorFinancials which is a trading name of Contractor Financials Ltd which is regulated and authorised by the Financial Services Authority. FSA Registration No: 207478
Not all products are regulated by the FSA e.g. buy to let mortgages. Your home may be repossessed if you do not keep up repayments on your mortgage.
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