How to find the best contractor mortgage deals

The best contractor mortgage deal is not always simply the lowest interest rate. The right deal depends on how a lender assesses your income, fees, early repayment charges, flexibility and whether they understand contractor income properly. Some lenders may offer a lower rate but restrict borrowing because they use salary and dividends only. Another lender may use your day rate and allow you to borrow significantly more. This is why deal comparison needs to include both rate and borrowing power. We normally compare product fees, fixed period, overpayment allowances, lender criteria and total cost over the initial term. Specialist broker access is particularly valuable for contractors because some of the most suitable lenders are available only via intermediaries. (Freelancer Financials) Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.