Best Contractor Mortgage Offers
The very best contractor mortgage offers are usually got from specialist brokers.
If you go to a bank or building society, they will base their offer on your director’s salary. Contractors want to minimise their salary in order to take more of the income in dividends.
So, they wouldn’t get much of an offer from normal lenders based on that.
You would also need to produce three months worth of accounts, which would disqualify new contractors.
Specialist Mortgage Brokers
To get the best mortgage offers, if you are a contractor, you have to go through a specialist contractor mortgage broker. They get offers for you based on your daily rate. All they need, as proof, is a copy of your contract.
If your daily rate is £500 a day, that would make your weekly rate £2,500. If you multiplied that by 48 (weeks in the year after holidays) you get £120,000.
You can get up to 4 times your annual salary as a mortgage offer. That takes you to a loan offer of up to £480,000.
Help to Buy Scheme
If a contractor takes up the Help To Buy scheme it means that he, or she, would need to just put down 5% of the cost of the house or apartment as a deposit. That means that the contractor can bid for a house costing £504,000. Of course, the bigger a deposit they make, the better interest rates they will get.
The best offers are got by making bigger deposits. However, mortgage offers for contractors are usually best when using a specialist broker.
First Time Contractors
They are especially good for first time contractors, or those with less than three years experience, as they would not have to produce three years’ worth of accounts.
Indeed first time contractors can get a mortgage offer on the very first day of their very first contract. They can be in their dream house just a month after starting contracting.
Using a specialist mortgage broker is a no-brainer for contractors.
To find out more about the best contractor mortgage offers, or to apply, click on Specialist Contractor Mortgages