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Contractor Mortgages: Mortgages for Contractors, Freelancers - IT Contractor MortgagesAre you an IT Contractor or Freelancer finding it difficult to source the right deals on contractor mortgages?
Many lenders have tightened their lending criteria over the past 2 or 3 years resulting in a restriction of mortgages for contractors and products for clients falling into the contractor mortgages market, namely in the Contractor or Freelancer category. Lenders don’t recognise that Contractors do not neatly fit into the ‘employed’ or ‘self-employed’ categories much rather they sometimes sit in a grey area in between the two and as such, this often means they fall outside of the Bank’s and Building Societies’ rigid lending criteria.
Obtaining a mortgage for a contractor therefore can be challenging. The stringent measures surrounding contractor mortgages introduced by lending institutions means that certain criteria have to be met and the relevant evidence produced. From the lenders perspective, they are trying to protect themselves from contractors who they think will default of their payments. Employees that have a permanent work position can access lines of credit for their mortgage easier than contractors. It is the transient nature of contracts and the non permanent nature of contracts that worry lenders in terms of on going security of mortgages repayments and getting into the contractor mortgages market.
However, a growing number of lenders have now identified and realise that many Contractors and Freelancers represent safe borrowers who display a history of consistent income coupled with niche skillsets and vast experience in sought after industries. This in turn allows the client to access highly competitive freelancer and IT contractor mortgages that have attractive rates with high street lenders.
Many banking institutions and lenders are now recognising that the contractor mortgages market can actually consist of “safe borrowers”. Like with employees many contractors possess a history of consistent earnings and have several years of experience in the IT Industry. The longer the history of earnings and experience in the field, the better rate that can be secured for a variety of contractor mortgages.
Contractor Mortgages are normally accessed on a case to case basis. What this means is that mortgages for contractors are tailored to suit the individual needs and circumstances. Many contractors have different terms of engagement. For example the daily contracted rate, the length of the contract, the duration of the mortgage, the amount required to be advanced. These all need to be taken into account and the best lender selected that best meets this criteria.
This highlights the need of a mortgage contractor broker in arranging contractor mortgages. Although IT Mortgages can place mortgages for any contractor, we specialise particularly in IT Mortgages. This is because we know which lenders are specifically suited to individual circumstances and where the best rate can secured in a variety of contractor mortgages. With so many variations on a contract and borrowing requirements it is imperative that the right lender is chosen and that you have a broker that can best represent your information to the lender to secure the most favourable terms.
In today’s lending climate it pays to find a Mortgage Advisor who knows how to overcome these issues in order to help you obtain a selection of contractor mortgages to help secure the funding that you require.
To start your search, just enter your daily rate in the contractor mortgage calculator below and we'll calculate a guideline amount you might be able to borrow. We are your best port of call for contractor mortgages.
Market Update - IT Mortgages