April 24th, 2013
Contractor Mortgages Made Easy (CMME) are delighted to announce that there will soon be contract-based mortgage options for all contractor professions, including those with low deposits.
Senior management at CMME have been in extensive talks with a major UK lender at Director level regarding an equal playing field for any Contractor occupation, and have successfully agreed that the same rates and low deposit options currently afforded to IT Contractors only, will be made available to contractors in all professions.
The bank in question wants to offer mortgages to all ‘professional’ contractors, subject to a minimum contract rate. They currently offer funding for purchasers with deposits as low as 5% of the purchase price.
CMME have been working with lenders for many years to ensure they understand Contractors and do not try to ‘pigeon-hole’ them into permanently employed or self-employed criteria, which can penalise the amount of borrowing and even cause applications to be declined outright.
The recent dialogue with a large player in the UK mortgage market is an extension of the ‘bespoke underwriting’ that CMME have facilitated for the professional freelance community around mortgage funding. Contractor-friendly lenders have traditionally wanted to ‘dip a toe’ into the contractor lending space by only offering bespoke underwriting to those they deemed to be in niche professions that attracted high contract rates. IT consultants only have benefited from this for several years, but this is now about to change.
Professions such as Management Consultants, Oil & Gas Engineers, Accountants, Interim Directors, and Actuaries (to name but a few), were traditionally excluded from the same flexible assessment of their incomes via their gross contract rate. CMME have provided information to lenders over a period of time to highlight the low risk in lending to these professions, which has led to a major breakthrough in talks this week.
Article by: Taj Kang, Operations Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
Tel: 0844 44 88 80