Contractor Mortgage Guides
Securing credit as a freelancer or contractor can be painful. Of the financial products generally available in the UK, mortgages are the worst. They are the biggest single barrier to the self-employed populace attaining parity with permies.
Some years ago we, as a company, faced a tough choice. We could continue with this unrelenting pastime of head-butting brick walls. If you're here, you know how unpleasant High Street lenders can make that feel.Or, we could find a way to get beyond these gatekeepers. You know them, too. The clueless advisers found at the front desks of almost every High Street lender.
All things considered, we chose the latter. Less painful, more fruitful. No-brainer. The result is that we now deal only with the decision makers.
As such, we're in a position to walk you along that same unhindered path. A stress-free stroll to people who understand how contracting works.
This is the direct route to people who can grant your mortgage based on your contract. Wanna jump in for the ride? Of course you do…
Why should I work with contractor-friendly lenders?
We've worked hard with lenders to simplify the whole mortgage application process. For contractors, that meant finding a way to assess relevant earnings for lending.
Yes, we accomplished that. In the end. But there was an added bonus. En route, we've fortified relationships with mortgage underwriters. Yet in a way that ties us to none. They respect our business; we respect theirs. That means that we're able offer:
- unbiased mortgage advice, unrivalled on the High Street;
- a whole-of-market service, from all contractor-friendly lenders in the UK;
- the most appropriate loan for your current personal and business circumstance.
We still have work to do to get contractors a mortgage offer. There's no 'magic button'.
But what we do know is how to package your application so that lenders can work with it. There's no room for fluff and fuss. High Street lenders make it harder than they ought. We send only the documentation we know underwriters need to approve mortgages for contractors. And that's the key.
The reams of accounts, payslips and trading history that you usually get asked for? Redundant.
All you need to get the ball rolling is:
- a copy of your current contract, with an extension if there's little room left to run;
- your CV, reflecting your trading industry in your current market sector;
- three months’ bank statements to show your contract payments materialising;
- proof of ID.
These are the only four documents it usually takes to present your application.
Below, you'll find a range of mortgage guides for independent professionals. They explain why specialist brokers hold the key to you securing competitive contractor mortgages. As there's so little relevant documentation involved, it's often in double quick time, too.
You wouldn’t believe some of the questions we get asked about contractor mortgages. But amongst those gems, there are staples. The same questions we hear from almost every client before they join our ranks.
Our founder, John Yerou, takes time out to debunk the most popular myths. Moreover, highlighting why Freelancer Financials is your one-stop-shop mortgage solution.
Do the differences between self-employed and contractor mortgages puzzle you? Unsure of what defines one role from another? If so, you’re not alone.
To help clarify it all, we first define how underwriters categorise contracting. Then, we explain how much contractors can borrow and how lenders appraise their applications.
Looking for a specialist broker to walk you through the contractor mortgage process? Ta-dah! You've found one.
Our “idiot’s guide” takes you through all the key stages of an application. Right from getting your agreement in principle through to completion. Sprinkled with caution, these simple, but assured, steps set you on the right path.
Many of our new clients are contractors with existing self-cert mortgages. Often, those loans are the result of advice from well-meaning (but misinformed) IFAs.
Now that lenders have shelved the self-cert, these contractors are panicking. Why? Because most lenders are yet to introduce replacement products.
The good news is, we’ve made it easy for contractors to get competitive mortgages without the need for self-cert. By annualising your contract rate, we can determine how much you can borrow.
John Yerou is a pioneer of contractor mortgages and owner and founder of Freelancer Financials, Contractor Mortgages®, C&F Mortgages and Self Employed Mortgages, trading styles and brands of the award-winning Mortgage Quest Ltd.