If you are a ‘Contractor’ you will generally struggle to find a mortgage with most conventional banks and building societies. The majority of mortgage lenders simply do not understand how you are paid and therefore will not offer any mortgage deals to this niche segment of the market…
Do you fit the lenders criteria? Can you answer YES to any of the following scenarios?
- Have you got a contracting history of 2 years? If No, are you experienced in the sector that you have a contract in?
- Is your current contract for a minimum of 3 months or about to be renewed?
- Is your contracting history without large gaps in between contracts, for example less than 6 weeks per year?
There are of course lenders that will offer you a mortgage if you fit their individual criteria and each lender has a different stance on this. In fact, it would be fair to say that every lender has different criteria based on the term of the contract, your history in the sector, whether the contract has been renewed previously, if tax is deducted at source, and some lenders may have a minimum income level that needs to be met… the list goes on.
Definition of a contractor: An individual that undertakes to perform a job or a service, under contract, to a 3rd party.
As a contractor, you will still get offered the same mortgage deals as a regular employed applicant, the only difference being that the choice of lenders may be slightly more limited. Mortgage deals will still be available as a first-time buyer, home movers or if you are simply looking to re finance your existing mortgage with deals currently available up to 90% borrowing.
The most common and acceptable Contractor Positions for mortgage lending:
- Accountancy
- Oil & Gas professions
- Compliance
- Actuarial
- Qualified Solicitors, professional engineers and Bankers
If you would like to discuss this further with one of our mortgage professionals who specialise in the contractor mortgage market please contact us now.
