Contractor Mortgages | Specialist Mortgage advice for IT Contractors and freelance workers.
Contractor Mortgages | We specialise in matching IT Contractor and freelancers with mortgage lenders offering highly competitive rates coupled with a wide range of flexible products.
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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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We do not provide specific financial advice on any financial services, but general information. For specific information we will need to refer you to someone who is authorised by the Financial Conduct Authority.
IT Mortgages complies with the Data Protection Act and therefore your personal information is confidential and secure. IT Mortgages is an introduction service to a network that is FCA regulated and authorised in the UK. IT Mortgages do not charge you any fees but may receive commissions for an introduction for Contractor Mortgages .
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Recently this problem has been worsening, due to limited mortgage funds and lenders wanting to reduce their risk. Although the daily rate for contractors is usually quite high, (typically around £300 to £400 per day, according to Contractor UK Ltd), the problem is contract terms are between three to six months, which lenders seem to be uncomfortable with. The fact that contractors and freelancers contracts are getting ever more risky in being renewed, lenders are thinking long and hard in lending to such groups of people, due to the constant risk of having long periods of no income and worries about mortgages repayments falling behind.
Most freelancers and contractors accept that since they do not have a stable source of income it reduces the chances of a mortgage or remortgage application being successful. Some lenders check on the contractors company and personal bank balances ensuring that they have sufficient income to maintain mortgage repayments should they have periods in which they fail to secure a contract. This is just one of the ways lenders have used to address their risks in lending to Contractors and Freelancers.
However it is also fair to say that not all contractors have significant funds in their company or personal bank accounts, no matter how hardworking they may appear to be. Ironically due to the lower tax they may be paying operating through a limited company or other structures, they may have earnings which are comparatively higher than those of their employed counterparts, but yet find it more difficult than them to obtain a mortgage or a buy to let contractor mortgage, due to the temporary nature of their contracts.
This however, does not mean that it's impossible to apply and have mortgages for IT contractors approved. Although It might sound really impossible for some individuals, but in reality, there are experienced and skilled individuals who are willing to help contractors obtain mortgages and work with certain lenders in a specialist way to achieve the required borrowing at acceptable terms. IT Mortgages an introducer for contractors and freelancers to qualified mortgage brokers stated that "They are specialists are willing to give advice pertaining to IT contractor mortgages", according to the director Mrs Neetu Ladher MBA ATT.
Most of these specialists have been working closely with contractors and freelancers, giving them a broader knowledge on what must be done next in order to help everybody process their mortgage and contractor remortgage applications. When choosing an expert to help you out, there are important factors that must be taken into consideration and these are: 1) The number of years that they have been in the industry, 2) Success stories coming from their previous clients, 3) Their known specialist in this field.
Garry Roath, managing director of Power Mortgages Ltd a firm regulated by the Financial Services Authority and a qualified mortgage advisor stated that, "We have successfully been securing mortgages for contractors and freelancers based on contract values." He states that some of the best buy rates his company has for contractors and freelancers can be as low as 2.69% being a 2 year fixed rate and based on certain qualifying criteria. He believes that Contractors and freelancers do not seem to be at such a disadvantage as it may intially appear.
Rajesh Kohli BSc FCA of Power Accountax Ltd a firm of accountants for contractors states that "In our experience although our contractors state that it has become ever more difficult renewing their contracts, they still seem to secure contracts due to the specialist and demanded nature of their skills.