Are interest rates much higher for contractors?

That interest rates are higher for contractors than for permanently employed people is pure fallacy.

The myth probably springs from a time when it was easier for inexperienced IFAs to secure mortgages for contractors using the self-cert. In that instance, rates probably were higher than those offered on other mortgage products.

It’s our aim to change that view. Over time, we’ve patiently developed relationships with leading High Street lenders and financial institutions. One reason for doing so is to simplify what qualifies as relevant earnings for lending purposes for contractors.

This patience has paid off, enabling us to negotiate the same “best buy” rates available to permies. As such, we can subsequently offer those rates to you.

Contractors can now choose from a whole range of low interest rate products, including:

  • fixed rates;
  • discount rates;
  • tracker rates;
  • flexible offset mortgages.

The best rates available begin at 75% LTV – or 25% deposit. Even with lower deposits, it’s still possible to secure rates of around 3.00% at 85% LTV and 3.99% at 90% LTV.

As noted above, credit score and deposit will have a bearing on the eventual interest rate you pay.


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