The questions on most new or even experienced contractors and freelancer’s minds when it comes to mortgages are:
- Is it difficult to get a mortgage as a freelancer?
- How will I be assessed?
- What size mortgage can I get as a freelancer?
- Will I need 3 years accounts?
- What is the best type of mortgage for a freelancer
Historically lenders have penalised contractors when it comes to sourcing a mortgage. Bank branch staff struggle to understand the Freelancer’s world. Many Freelancers have also been let down by non-specialised brokers who have approached the wrong lender or poorly packaged the application. With the current banking crisis, assessing contractors and freelancers is only going to get harder with lenders tightening their lending criteria.
Most lenders have a simplistic view of what qualifies as relevant earnings for lending purposes. In contrast, by making use of extensive expertise and contacts developed with lenders and mortgage networks we are able to directly present your application to senior underwriters so that your full earnings potential is taken into account, including earnings which are not paid out but retained within the company for tax planning purposes.
Freelancer Financials can arrange mortgages for freelancers at 5 x annualised contract rate or 5 x limited company net profits. We firmly believe that Freelancers are a section of society who deserve better treatment at the hands of lenders and our ongoing attempts to secure more favourable terms have certainly paid off.
Freelancer Financials will find the best “contractor mortgage” provider for you, one who will make you a mortgage offer based on your hourly or daily rates. They will not require 3 years accounts like most conventional lenders. Perhaps most importantly the provider will be a recognised, major financial institution.
Choosing a good mortgage broker is essential in today’s current financial climate. Freelancer Financials can save you the hassle of dealing with high street lenders who are not familiar with freelancing. Unlike most mortgage brokers that charge a fee, Freelancer Financials will not charge a penny for their advice.
Freelancer Financials have been securing contractor mortgages for years and working with us will ensure that you are making the most of the opportunities presented by your contractor status (under a LTD company). Freelancer Financials will help you avoid the pitfalls that you face working outside of a large company employee benefits package.
So what is the best type of mortgage for Freelance Contractors? Obviously that depends on your personal circumstances and specific requirements, but for most freelancers working through their own limited company Offset mortgages are the preferred choice. We really like these schemes for Freelancers as they offer the most flexibility.
At Freelancer Financials we offer a clear and impartial service to bypass the frustration of being rejected by lenders with an out-of-date bias towards permanent employment. We can secure the most competitive mortgages regardless of how you’re paid. We appreciate that for tax reasons many contractors will draw a minimum salary and also restrict dividend drawings from their company to avoid higher rate personal tax.
