Contracting can offer flexibility, freedom and the potential to earn better take home pay but one thing that often causes concern for those not working in traditional, permanent employment is securing a mortgage.
Since the economic crisis securing a mortgage or loan has been more difficult for people generally with banks and building societies tightening their lending criteria. For contractors working on temporary assignments it can feel impossible. Often contractors are deterred from trying to buy their own home after their own bank or building society has told then they wouldn’t qualify for one of their mortgage products. It doesn’t have to be difficult though, the key is to be prepared to shop around beyond the high street names and to do plenty of research or enlist the help of someone to do that research on your behalf.
We always advise seeking professional advice before you start applying for mortgages. An initial appointment with a mortgage broker who has experience of dealing with mortgages for contractors could save time and minimise the stress involved.
A good mortgage broker will be able to look at your current circumstances and will give you a clear idea of the level of borrowing you can realistically expect to be approved. They will also look at what your monthly repayments will be and what you can afford to repay once other financial commitments have been taken into consideration.
For most people their mortgage is the biggest investment they ever make so it is definitely worth investing some time and speaking to someone who will help and guide you through the process.
We recommend speaking to a broker who.....
At Sterling we are happy to refer our contractors to Faraday Mortgage Associates. Faraday specialise in contractor mortgages. They have previously supported many of our umbrella employees, CIS contractors and ltd company directors helping them to secure the mortgage they need. They can help with buying a first property, moving home and remortgaging an existing property. They can also help those interested in buy-to-let mortgages.
Their extensive experience in this area means they understand the complications involved in applying for a mortgage as a contractors. They understand the market, know which providers have a positive attitude towards contractors and the self-employed and will know where to look to secure lending which suits your circumstances. They’ll also save you lots of time by completing paperwork on your behalf!