When it comes to finding a mortgage provider, contractors can often struggle to find their ideal solution due to the numerous roadblocks that simply having a career as a contractor can pose.
Largely, the issues faced by contractors applying for a mortgage are down to many banks and building societies being unfamiliar with how the contracting industry works. As a contractor’s company accounts rarely reflect how much they actually earn, therefore when lenders base a mortgage on these figures, they will be seen as quite high risk.
The current mortgage environment is looking very positive for borrowers with an increase in the number of products available on the market, its highest number since the 2008 financial crisis, and rates falling to a new low. All in all this means that, for the average borrower, finding a good deal on a mortgage should in theory will be relatively easy. For contractors, however, it could be an entirely different matter.
There are two main issues that will need to be looked into for a contractor finding a mortgage; firstly, they need to prove their full income so that the level of funding they require will be supported, and secondly, evidencing long-term incomes so that a mortgage provider feels confident that payments will still be made monthly when contracts finish.
So how can contractors find their preferred mortgage providers, that will both find them the best deal and have a clear understanding of how the contracting industry works so that this will not impact negatively on getting a great deal?
Mortgages for contractors
We have been working closely Faraday Mortgage Associates for many years, as have our contractor clients. They are specialists in mortgages and insurance, with a significant amount of experience in finding the best deals for contractors.
Their experience in navigating the tricky mortgage market, alongside their in-depth understanding of the contractor industry, allows them to work with contractors to provide the best possible underwriting of their mortgage application specifically aimed at securing the best possible deals with the right mortgage providers.
We have no hesitation in recommending Faraday to our contractor clients, if you would like to get in touch with Faraday to see how they could help you, email advice@faradayonline.co.uk or call 01925 62 62 62.
