Contractor Mortgages Gerrards Cross

Are there specific mortgages for contractors?

Not so much specific mortgages for contractors, but rather lenders with criteria that can be more favourable for contractors. For further information, speak with a specialist or contact one of our specialist advisers.

How is mortgage affordability accessed for a contractor who has a limited company?

Commonly a lender will look at your salary plus dividends, or possibly your salary plus business profits. However, there are a number of important considerations and much to think about here. Speak with one of our specialist advisers for further information and advice that best suits you.

How is a contractor’s income assessed for a mortgage when they are paid a day rate?

This really depends on the lender’s criteria and your contractor status. Different mortgage providers will treat certain contractors as employed, or as self-employed or based on their daily rate.

Check out our contractor mortgage calculator.

Our specialist advisers for further information and advice that best suits you.

Which lenders offer mortgages to contractors?

From prime high street to specialist lenders and niche banks to building societies. There’s a range of lenders out there to speak to. Our specialist advisers will assist you in finding the right lender that suits your needs.

What is the minimum deposit required for a contractor mortgage?

Currently, the minimum deposit required is five percent. But if you’ve got a 10% or 15% deposit you would have access to more options and potentially better rates and fees. Our advice is to do some research here. Our advice would be to do some research or speak with a specialist mortgage adviser or with one of our specialist advisers for further information.

How do you strengthen your mortgage application as a contractor?

It’s important you get the basics right:

• Check your bank statements - Check more is coming in than going out.
• Avoid using your overdraft - Whether it’s an agreed facility or not.
• Get a copy of your credit report - Check if any work is required here.
• Ensure any existing credit agreements are up to date - If possible, pay some of it off.
• Avoid taking out new credit.
• Make sure all your documentation is up to date.

• Try and avoid gaps in employment - Where possible.
• If you’re thinking of taking a new contract or nearing the end of an existing one - Speaking to a specialist broker for advice.

Our specialist advisers are always on hand for any further advice and information.

What documents does a contractor need?

Standard identification documents such as:

• Passport.
• Driver's licence.
• Proof of address (bank statement, credit card statement or council tax bill).
• Personal bank statements typically for at least the last three months.
• Business bank statements where applicable.
• You will also need proof of deposit if you are buying a property.

• Pay statements for 3-12 months - If you’re under an umbrella company or in the construction industry.
• Company accounts and tax returns - If you are self-employed.
• Copy of your current contract.
• Copy of previous contract if requested.

The lender may want to see if it’s been renewed or check for any gaps. Depending on the lender you may need a copy of your CV also.

Our specialist advisers are always on hand for any further advice and information.

How do contractors get a mortgage?

The process for a contractor is the same as anybody else. The process is the same, but what’s important is you get the most suitable mortgage for your circumstances. And speak with one of our specialist advisers for further information and advice that best suits you.

What about contractors who have a poor credit rating or a gap in employment?

It’s not impossible to get a mortgage if you have poor credit or gaps in employment. However, it may be more challenging depending on the length of the gaps, how many there are and the reasons for them. With bad credit, it will depend on what the issues are. The best thing to do is to get a copy of your full credit report, then speak to a specialist adviser for recommendations about your options. Feel free to contact one of our specialist advisers for further information.

How much can contractors borrow on a mortgage?

This can vary widely, depending on the individual circumstances and the lender. The most important thing is to make sure that you can afford the mortgage both now and in the future. For further advice speak with a specialist or feel free to contact one of our specialist advisors.

How is a contractor’s income assessed for a mortgage when they are paid a day rate?

This will depend on the lender’s criteria and the person’s contractor status. Different mortgage providers will treat certain contractors as employed, or as self-employed or based on their daily rate. It depends on the individual circumstances and contract types. It’s best to seek specialist advice so that you understand your options.

How does a Buy to Let contractor mortgage work?

A Buy to Let contractor mortgage is essentially the same as for anybody else. Lenders tend to be more interested in the potential rental income of a property rather than a person’s personal disposable income. Some lenders have a minimum income requirement, which is usually around £25,000. The rationale behind this is to cover any potential void periods or basic maintenance costs. But as the minimum income requirement is generally lower than that required for a residential mortgage, it should be more achievable.

What about contractors buying with another person?

If a contractor buys with another person, they are each underwritten individually. So if you have a person who’s employed buying with a contractor, the employed person will be assessed using their payslips and P60, whereas the contractor will be assessed using the ways that we’ve already discussed. It could be that by having two incomes, you could borrow more. But it’s best to seek advice in the first instance so you know exactly what your options are.