Go to any freelance contractor forum or speak to any other contractor and they'll have different opinions and experiences on what it's like applying for a mortgage loan as a contractor or freelance worker. So we thought it would be a good idea to straighten out the facts about contractor mortgages.

CONTRACTOR MORTGAGES

Check out our contractor mortgage frequently asked questions below and make use of the "contractor mortgage calculator" to find out how much you can borrow.

Does the end of Self-Cert mean that I can't get a mortgage as a contractor?

Many mortgage brokers who are unfamiliar with the contracting market have been recommending Self Cert mortgages to contractors for years, but at Freelancer Financials we've been securing competitive prime rate mortgages for contractors based on their "contract rate alone" for many years.

As a contractor you should not have to settle for Self Cert mortgage with expensive fees and high interest rates. Avoid mortgage advisers and high street lenders who are not prepared to assess you on your annualised contract rate.

Why is Freelancer Financials different to other mortgage brokers?

Unlike other mortgage brokers we specialise in providing mortgages for freelancers and contractors. Many contractors come to us because they have been let down by general mortgage advisers who have no experience in presenting mortgage applications for contractors. In some cases they have obtained a "decision in principle" paid the valuation fee, only to find out that their application is declined once it has been assessed by an underwriter. Many of our clients are introduced to us by freelancers and contractors that have had the benefit of our specialist service.

How much will I be able to borrow?

Freelancer Financials have arrangements in place with lenders that will use their standard multiple of income on your current annualised contract rate to calculate a maximum loan amount. We are able to secure a mortgage loan of up to 4.5 times your annualised contract rate. Enter your details into our contractor mortgage calculator to find out how much you can borrow. Essentially, the success of your mortgage depends on how well your application is presented to key decision makers. We ensure that your application is correctly packaged and directed to senior underwriters who have an understanding of your contractor status and earning potential.

Are interest rates much higher for contractors?

Certainly not - this is pure myth. At Freelancer Financials we can arrange mortgages for contractors at competitive interest rates that are no different to the mortgages being offered to people in permanent employment.

Is it possible to get an "agreement in principle" before making an offer?

We can obtain an "agreement in principle" based on your contract rate or net profits, however it is important that you do not confuse this with a "mortgage offer". An "agreement in principle" is a certificate of credit check that states you have passed the lenders credit assessment. In a way this is an endorsement which puts you in a position of strength when negotiating with a seller or estate agent

Will I be charged a higher interest rate as a contractor?

Not if we can help it! Over the years we have patiently developed relationships with leading high street lenders and financial institutions in relation to simplifying what qualifies as relevant earnings for lending purposes for contractors. We have been able to negotiate the same "best buy" rates that are available to permies. You can now choose from a range of low interest rate products ranging from fix rates, discount rates, tracker rates and flexible offset mortgages.

How much deposit do I need?

Depending on the amount of deposit you are willing to put down the mortgage interest rate will differ. As you are probably aware, the larger the deposit you put down the lower the interest rate you receive. A deposit of 15% will secure you a reasonable rate with a wide range of lenders although 10% deposits are acceptable these rates will be charged at higher rates.

I have just started contracting?

At Freelancer Financials we can arrange a mortgage for you with a reputable high street lender on the day you commence your first contract.

Continue reading about arranging a mortgage for contractors