Advice on getting specialist contractor mortgages.
Many contractors walk into a high street bank or building society and ask for a mortgage.
The banks and Building societies tell them that they need three years of accounts. This is a game stopper, therefore, for those contractors who have just started contracting and want to put their new-found riches to good use. They go away thinking they have to wait for 3 or 4 years. Furthermore, by this time the price of houses may well have risen.
Even if they are able to produce three years of accounts, the next hurdle is that the banks and building societies tell them that their offer will be based on their Director’s salary rather than their daily rate. Most contractors pay themselves as little as possible. This is so that they can take their money in dividends and pay less tax. So, they find that they get a lower mortgage offer than they would have if they had stayed permanent.
Specialist Contractor Mortgages Broker
What they should have done is to go to a broker of specialist contractor mortgages. These brokers can get contractors mortgages based on their daily rate rather than Director’s salary. Also, they don’t have to produce any accounts at all – just an invoice.
The reason that they are able to get contractors these mortgages is that they have built up a track record with those supplying mortgages. Each contractor who is a good payer back of his mortgage gives them more credibility. So, contractors can take advantage of the credibility that the broker has built up.
Indeed one broker told me that he can get contractors a mortgage offer in 3 to 6 days. He can have them turning the keys to their new house 4-6 weeks after their initial contact. Moreover, they even boast that if a new contractor contacts them they can get a mortgage offer to them before they’ve even sat down at their new desk for their first contract. That’s quick!
To contact a top specialist contractor mortgages broker just fill in the mortgage application below.