Contractor Mortgages and protection together in one home
Our specialty is securing mortgages for contractors and freelancers based on contract earnings alone. Not take-home pay. Not payslips. Not accounts. Your contract rate!
Every year, we help thousands of contractors access mortgage loans and protection they’d otherwise not find, either online or on the High Street. That could mean sourcing the most competitive contractor mortgages or bespoke insurance to suit. Either way, we’ve positioned ourselves over the years to meet that specific demand.
We’ve helped banks and their underwriters understand the nuances of contracting. We’ve sat down with them and negotiated a range of specialist mortgages for independent professionals. Some of the interest rates we can offer today are exclusive to our brand.
This longstanding level of input means banks trust us to use your contract rate as a base for your mortgage affordability. In turn, we can often offer you access to greater funds than your permanently-employed peers.
So why can’t I “afford” a High Street mortgage?
Since lenders withdrew self-cert mortgages, contractors and freelancers have struggled to fund buying a home. Not only was this a thorn in the side for the UK’s self-employed workforce, it also created huge headaches for mortgage lenders.
Lenders, with new regulatory constraints, watched helpless as sectors of their mortgage market disappeared. Why helpless? A typical contractor’s accounts were – and are – too involved for front-desk advisors.
Never getting past first base means that a contractor often gets turned down for mortgages. It’s not because they can’t afford the finance; far from it. It’s how in-branch staff interpret their earnings that was and remains the stumbling block.
Limited company and umbrella contractors’ payslips and accounts are geared for tax-planning. The net result is that their “salary” appears low compared to their income.
To those who don’t understand tax-planning, it seems that contractors don’t take home enough to afford a mortgage. That’s why the High Street is such a no-go zone for the genuine contractor looking for a mortgage.
The best contractor mortgages; no accounts, no fluff
From those ashes, there is a silver lining. Select self-employed mortgage specialists have brokered deals with “Contractor-Friendly” lenders. We happen to be one such broker.
We don’t deal with those inept in-branch advisors. We’ve hammered out our application process with the decision makers: mortgage underwriters.
They understand the way you work, as do we. They also understand how we work and know that we won’t waste their – or your – time with spurious applications.
This means we can now offer contractors and freelancers mortgages based on the new arrangements. In essence, the advantage of our privileged position we can now pass on to you.
Enlightened lenders still use their standard multiplier as before. But they now apply it to your annualised contract earnings to determine the maximum amount they’ll lend you. Now that’s progress!
What documentation do we need from you?
Simplicity is the answer when it comes to mortgages that use your contract rate. Two factors that will help your application above all else are:
- that it’s packaged correctly, in the way that we’ve agreed with underwriters they should receive them;
- it goes directly to those decision makers, circumventing in-branch staff.
Underwriters don’t need payslips and/or three years’ worth of accounts. They can accurately calculate your true mortgage affordability based on your contract rate alone. After all, it’s the latter that truly reflects your full earning potential and disposable income.
To help us help you, we only need:
- a signed copy of your current contract, displaying your rate;
- an up-to-date copy of your CV;
- the last 3 months bank statements;
- a form of ID, such as a passport, driving license or utility bill.
And you can stop looking for the “what else”. That’s it. Those four documents are all underwriters need to work out your mortgage affordability.
Why do I need a specialist mortgage broker?
It grates when I hear the cliché, “You won’t find these deals on the High Street.” But in this case, it’s absolutely true (sorry!).
Appointing a specialist mortgage broker will help you avoid the tooth-wrenching agony of dealing with underwriters who simply don’t get contracting.
Advisors experienced in dealing with contractor mortgages will streamline the whole process for you. You have one point of contact, here in our office. They deal with everyone else on your behalf, but are always there should you need an update.
There’s also a bonus with processing contractor mortgages. There’s so little “fluff” involved, they often get processed more quickly than standard applications.
Why choose Freelancer Financials?
Over 99% of our clients are either a contractor or independent professional under one guise or another. As such, our experience doesn’t come only from talking to the lenders. We take the time to talk to and understand limited company and UK payroll umbrella contractors, too.
Freelancer Financials is a leading contractor mortgage broker based in London. We’ve established our efficiency, reliability and integrity. Today, ours is a brand that all independent professionals can trust.
We take genuine pride in providing a fast and efficient service for all our clients. Not just those whom we hope to join our community in the future. Those past and present are always welcome, too; we hope that you are amongst that number.
Essential Contractor Protection Insurance
Far too many contractors in the UK have either insufficient protection cover or none at all. Life, Critical Illness and Income Protection are insurance policies that contractors, above all, should not be without.
None of us think twice about insuring our household contents, pets or mobile phones. All-too-often, we neglect protecting the most important factor in contracting: ourselves.
It’s essential that you protect the things that matter: you, your family, your mortgage and your lifestyle.
At Freelancer Financials, our service doesn’t end when we secure you the best mortgage deal. We want and ought to help you protect your livelihood once you’re in your new home.
Contractors are susceptible to many pitfalls that exist beyond the safety net of employment. When you stand up as your brand, very often, it’s you against the world.
We want you to make the best of your business opportunity. But equally, we want to be your Fall Guy for those times you cannot fight the good fight alone.
Who’ll bring home the bacon if you can’t?
Our access to the UK’s leading insurance providers offer you fantastic rates on all policies. This includes:
- life insurance;
- critical illness cover;
- income protection.
All of these are essential in providing both you and your family with effective, but affordable, financial security.
If you’re not already prepared for the unexpected (or if you are, but are looking for a new deal), talk to us. Our advisors are happy to walk you through what you need to put in place to provide adequate protection for you, your contractor business and the roof over your head.
Contractor Mortgage Calculator
How much can I borrow on my daily rate?
Potential Borrowing = £