Britain is renowned for being a nation of entrepreneurs. For contractors, however, dealing with banks and lending institutions can still come with its challenges as fluctuating or short term monthly income is often considered to hold greater risk than fixed salaries.
As a consequence of the stringent affordability calculations enforced after the financial crisis, not all lenders are inclined to work with contractors, as even the more flexible lenders want to see a more structured income stream. However, Enness has extensive experience of acquiring mortgages for contractors and has an extensive network of lenders who will take a complete view of your situation.
WHAT DO I NEED TO KNOW ABOUT CONTRACTOR MORTGAGES?
Different lenders will have different criteria and, contrary to popular belief, there is a wide variety of property finance available to contractors. Overall, lenders will look at your track record, expenses, and renewed contracts to determine the stability of your income to estimate a suitable yearly figure:
(Daily pay rate) x 5 x 48 (working weeks in the year)
However, even with this calculation as a benchmark, approaching the right lender is hugely important when securing your mortgage, as being turned down by just one lender can affect your credit score.
We know how confusing the seemingly infinite number of options can be, especially for those who generate substantial income on an annual basis without the security of permanent contracted employment. Using a broker will save risking your credit score and save you a lot of time as you will be guided down the right path from the outset.
HOW CAN ENNESS HELP WITH CONTRACTOR MORTGAGES?
Almost half of our clients are classed as self-employed, so Enness is well versed in such cases, sourcing the most beneficial solution for each circumstance. Whether it’s the fastest, cheapest, easiest or largest mortgage solution you’re looking for, we can make sense of the market and guide you in the right direction.
We know the key to arranging a mortgage is obtaining a full understanding of a client’s circumstances, without solely relying on stringent affordability criteria. We are confident in our ability to portray your finances in the most favourable light, and find the right lender for you.