People who aren’t in permanent employment working for someone else normally struggle to obtain a mortgage from traditional lenders. This is because most banks and building societies require three years of accounts for self employed people and those who work through contracting. In some cases, it simply isn’t possible to provide the information required to gain approval.
However, specialist lenders can help you to successfully apply for a mortgage of up to 4.5 times your current income, without the hassle of having to provide years of accounts. You can also remortgage to save money on your existing mortgage, with rates starting from as low as 2.95%, even if you’re working freelance, or for an umbrella company.
With specialist contractor mortgages, there’s no need for your accounts history. Instead, in many cases, all you need to provide are your bank statements and a signed contract. It doesn’t have to be difficult to obtain a contractor mortgage. In fact, thousands of self employed people and contractors have been approved for a secure mortgage without problems.
The specialist lenders will allow applicants to get a mortgage based on their contractor rate alone, as long as you have two forms of ID, a bill with your current address, recent bank statements and a copy of your current contract.
In some cases, a contractor mortgage can be available with just a 10% deposit. It’s available to first-time buyers and home-owners wishing to move or remortgage. By studying your options with contractor mortgages, you can potentially find low fixed rate interest for two years.
Taking advice from specialist lenders will provide you with information on types of mortgages for contractors. For example, in some cases, borrowers may be able to take advantage of a “flexi-mortgage” to avoid paying tax on savings. A flexi-mortgage allows you to “off-set” the funds against your mortgage instead.
If you’re looking at remortgage options to undertake home improvements, consolidate debts, finance a business or ensure you have financial back-up in place should you need it, competitive rates are available to the self employed, those who work freelance and for umbrella companies too, simply by talking to a specialist adviser and making sure you’re aware of the best options.