Making repayments on a contractor mortgage

Making repayments on a contractor mortgage works in exactly the same way as any other residential mortgage. Once the mortgage is in place, the fact you are a contractor no longer changes the monthly repayment structure. You will make fixed monthly payments made up of capital and interest, unless you are on an interest-only arrangement. The important part is ensuring affordability remains comfortable during any contract gaps. At Hearthstone, we usually help contractors plan around renewal gaps, tax periods and variable monthly income so repayments remain manageable. 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.