Genuine contractor mortgages average 4-6 weeks to complete
Most lenders with whom we work complete the contractor mortgage process in 4-6 weeks. That's start–to–finish, application–to–keys to the door.
With other brokers, it might be different. We can't speak on their behalf. And variables can sometimes affect time to completion with our lenders.
Even with obstacles, contractor mortgages still complete sooner than standard mortgages. The simple reason: there's a lot less documentation to get in the way.
So if you're at a point where you're ready to apply, consider the following.
Possible delays in the completion process
Backlogs at underwriters can occur when lenders are running special offers. These don't have to be contractor-specific offers, per se. They could be seasonal or in line with other types of specialist borrowing.
Time elapsed since getting your Agreement in Principle could affect things, too. Most AIPs are good for 30-90 days.
When you applied for your AIP, you may have had three months left on your contract. That's good enough security for most contractor-friendly lenders.
But what if it's taken 75 days from getting your AIP to actually applying?
That would mean you only have about two weeks left on your contract. Few lenders will run with that.
With any luck, you've got a new contract or extension in the wings. If not, go to your agency or client; ask them for an extension or to renew your contract.
In our experience, most will accommodate you if you explain why you need it.
When you're ready to apply
As soon as you have a copy of your signed contract, get the ball rolling.
Contact your broker for a mortgage proposal; secure your AIP.
Your AIP will take no less than a day, providing there are no complications.
Your application package will then go straight to a specialist underwriter.
Make sure you use a specialist broker, too. Generic High Street underwriters often don't understand limited company accounts.
Upon receipt, the lender will value the property you’re considering buying.
Then, your solicitor will carry out the necessary legal searches.
Assuming everything checks out, you'll not have to wait long to pick up the keys to your new home. 4-6 weeks is the average, but many contractor mortgages complete in a lot less time than that.