Contractor mortgages are fast becoming a mainstream way of getting paid which lenders are very flexible with.
I see many brokers/lenders over-complicating this to charge larger fees. Do not fall into that trap.
In a simple example:
In practice, most contractors are set up as a Limited company. This means you can go down this path.
Below are the main ways you may be set up and broadly how lenders look at your income.
Limited Company Director
However, using the day rate calculation often works out as more generous/easier to asses. Most lenders want to see a track record of either contracting or having relevant experience in the industry. The longer the experience and higher the day rate, the more generous lenders are when coming to assess the borrowing.
As you can see above, the more complex the income, the more help you often need to be approved for contractor mortgages.
We specialise in this area, so would encourage you to speak to one of the The Team just to see what your options are before progressing too far with an application. This will ensure you get a smooth experience when applying for contractor mortgages.
A fee of up to 1% of the mortgage amount may be charged depending on your circumstances (ie. £1000 on a £100,000 mortgage). A typical fee is £495 plus we will receive commission from the lender.
Your property may be repossessed if you do not keep up repayments on your mortgage.
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