When you have made the jump from a permanent position to contracting, you may be wondering how the new working status will affect your chances of securing a mortgage. The reality is that the majority of lenders have designed the mortgage application and processes with standard employees in mind.
However, there are an ever increasing number of lenders who are willing to work with specialist brokers, like ourselves, who have complete understanding of the financial side of contracting. By choosing to use the services of a specialist, the contractor can be sure that their application is presented in the best way, minimising the risk of a decline.
What Do I Need?
There is a common misconception in the marketplace that contractors will be required to put down a much larger deposit than permanent employees. In fact, contractors have the opportunity to access the same rates and minimum deposit requirement than any other individual. However, it is worth noting, a higher deposit will allow you to access better interest rates and more product ranges.
Contractor Mortgage Documents
We often speak to individuals that have been told they will not be able to get a mortgage without 2 or 3 years of trading accounts. In reality we are potentially able to help contractors with a limited company that have no trading history. A contractor will need to provide a copy of a current contract and a CV. With these 2 simple documents we are able to show the lender your current earnings, and your experience as a skilled professional. This way we avoid any issues regarding affordability.
The documents that you will need to secure a mortgage as a contractor will differ slightly depending on how long you have been contracting: