At Contractor Protection, we are here to help you secure the same competitively priced mortgages that are available to permanent employees. Our partners of specialist financial advisors know how contractors work and have strong relationships with lenders who will agree to lend to you, based on a multiple of your annualised contract rate – without having to go through the hassle of finding 3-5 years’ worth of accounts.
Mortgages for Contractors UK
If you’re an employed person working on a fixed or short-term contract, or you’re a self-employed person that works through one main company, you are considered to be a contractor.
Some lenders will lend to one of the above circumstances, whilst other lenders won’t cater for either. This is why it’s so important to seek specialist contractor mortgage advise from a broker with access to the entire market – like Contractor Protection!
What Type of Contractor Mortgages Are There?
There are mortgages for the following type of contractors in the UK, in a number of industries:
Anyone who is registered as self-employed and pays their own tax and national insurance contributions is classed as self-employed, whether they declare their income through self-assessment or an account does on their behalf. Getting a mortgage as a self-employed contractor can be difficult if you have less than 12 months’ worth of working history, as most lenders need to see evidence of trading for at least a year. Some lenders however do accept at least 6 months.
Employed Fixed and Short-Term Contractors
In some cases it is easier to obtain a contractor mortgage if you are a fixed or short-term contractor. Applicants will usually need to have been trading for at least 6 months and have a further 6 months to run on their current contract. To put it simply – the longer you have been trading for, the better in the eyes of the lender!
Umbrella Company Employees
If you’re a contractor working through an umbrella company, you may need to meet with a contractor mortgage specialist as some lenders may struggle to ascertain how sustainable your income is. However, there are some lenders who cater for this type of borrower, subject to a set criteria being met.
Zero Hour Contract Workers
Specialist contractor mortgage brokers may be required if you are on a zero-hour contract, as many lenders will consider this to be too high a risk. The providers that do supply contractor mortgages for zero-hour contract workers will typically ask for a track record of 12 months’ income as evidence that the work is set to continue.
If you’re an agency worker, you can obtain a contractor mortgage subject to standard criteria. Since 2011, temporary agency workers have been able to enjoy some of the same rights as those in permanent employment, making them a lower risk to mortgage lenders.
Why Choose Contractor Protection?
We specialise in advising on and processing contractor mortgage applications to arrange contractor mortgages.
To get the very best deal, we recommend using a specialist financial advisor at Contractor Protection who already has relationships with lenders that are familiar with the contracting market. Our financial advisers will be able to find the perfect contractor mortgage efficiently and will be able to save you a lot of hassle throughout the process.
To find out more, please contact the team at Contractor Protection today.
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