Many contractors are finding it hard to secure a mortgage from a number of the High Street lenders such as HSBC, Abbey, First Direct, ING Direct, Natwest and Lloyds TSB. This is mainly because their branch staff or call centre staff don’t understand how contractors and freelancers work.
In most cases you will end up trying to explain to some inexperienced young spotty clerk over the counter that you’re an IT Contractor with your own limited company on a daily contract rate of £400, grossing an annualised contract income of around £96,000. I guarantee that 99% of branch clerks or call centre staff won’t grasp any of that. They simply don’t get it! A number of lenders used to offer bespoke mortgages for contractors, Abbey for instance, but since the credit crisis have tightened their lending policy like many other lenders.
Specialist mortgage brokers
Fortunately, over the past few years a number of specialist mortgage brokers like ourselves have put in a huge amount of effort to negotiate special income underwriting policy with a number of the big High street lenders. This enables us to secure competitive mortgages that are based simply on a multiple of your contract rate alone. We make use of our special relationship with senior underwriters to directly package your mortgage application so that your full earnings potential is taken into account, including retained profits. The mortgage loan can be as much as 4-5 times annualised contract rate.
As a contractor, it is important to appoint an experienced specialist mortgage adviser that has an in-depth knowledge and understanding of the contractor market. Also check whether that the mortgage firm is able to provide what is referred to as “whole of market” service, which means they can advise you on and arrange a suitable mortgage from all the lenders and from all their product range.
Freelancer Financials are specialist in offering contractor mortgages based on contract rate alone – provided by high street lenders who understand the working arrangements of contractors. Regardless of whether you have your own limited company or work through a payroll umbrella company, Freelancer Financials can secure a contractor mortgage based simply on a multiple of your contract rate.
If you are interested in finding out more about the mortgage options available to you, simply fill in our enquiry form, and we will get back to you shortly.
Also, read our articles on contractor mortgage advice for UK contractors and freelancers in the post-crunch world.
Freelancer Financials are the preferred choice for thousands of contractors in the UK. Our mortgage specialists are more than happy to help in any way they can, so please do contact us on 020 8421 7999 or email us at [email protected]
