Contractors who have applied for a mortgage before are all too aware of the problems that can catch you out when not utilising the help of a specialist broker. One of the potential pitfalls of being a contractor and applying for a mortgage is overcoming the longevity issue, as on paper, all contracts have an end date.
The very nature of contracting is that it is far more lucrative than being a PAYE member of staff, however with that comes the uncertainty of future employment. Experienced contractors with good skill sets will suffer less from this but it can be a daunting proposition if you’re new to the contracting world. Now imagine how a lender who is potentially about to lend you x number of thousands of pounds might view this?
There is no questioning the banks and building societies appetite to lend in the current market with record low-interest rates, however, they still require some serious hoops to be jumped through. Sadly, more often than not if you walk into your high street bank as a contractor evidencing future ‘employability’ is an almost impossible task.
CMME have been working in the contractor space since 2004 and has developed a very unique way of overcoming this very issue. Due to the long-standing relationships that have been forged with the major high street banks, the process has now become potentially even easier than if you were PAYE.
CMME has access to unique underwriting that can ensure you will be viewed as a permanently employed person. This means the longevity issue is taken out of the equation and a contract end date is no longer an issue when applying for mortgage funding. This has come about as we, being a specialist broker have managed to get the lenders to take a different approach. Contractors are not self-employed limited company directors, they are high net worth, highly skilled individuals, who are very likely to be in work until they retire, as their skills are high in demand.
The bespoke underwriting is not only an option if you are looking to move house, but for buy to let and commercial limited company purchases as well. The message here is; don’t chance your arm on the high street, speak to a specialist broker that understands you and the way in which you work.