How Just Mortgage Brokers Can Help You
While being your own boss is undoubtedly one of the biggest perks of working as a contractor, there are also a number of disadvantages you have to consider before deciding to go it alone. One of the largest problems can often be the difficulty in gaining a contractor mortgage. Thankfully, for most these days, this is a thing of the past.
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What are contractor mortgages?
These mortgages are products designed to meet the specific needs of contractors. As pay is typically based on a daily or weekly rate, in many cases they do not have a yearly salary or the 3 years of accounts some mortgage providers ask to see. Instead, specialist mortgages for contractors allow you to borrow money based purely on your contract rate. If your credit rating is fine and you fall into the low-risk category, you should be able to borrow at the same rate of interest as a PAYE employee.
Do I need 3 years of accounts to get a contractor mortgage?
No. For the last couple of years, contractors have been able to get a mortgage without producing 3 years of accounts. Although every lender will have their own criteria which dictates who they lend to and what they need to see, most specialist lenders will be happy to arrange a mortgage based on the contract you have now, rather than past performance.
Will I need a big deposit?
The average deposit for contractor mortgages is between 10 and 25 percent, which is similar to that of a PAYE employee.
How competitive are the rates?
The interest you’ll pay on mortgages for contractors should be very similar to a PAYE employee in the same circumstances. In many cases, the generous rates of pay for those working on contracts allow them to save larger deposits than employees. These substantial deposits then lower the interest rate and reduce the cost of the loan. There are also no limitations on the type of mortgage contractors can access, with fixed, variable and tracker rates all available.
How can we help?
Competitively priced mortgages for contractors have traditionally been difficult to find. At Just Mortgage Brokers, we specialise in niche financial services like mortgages for contractors and know exactly which lenders to approach to find the right deal. This intricate knowledge of the market means we can secure a competitively priced contractor mortgage where others have failed before.