Home Mover Contractor Mortgages
Moving home can be as stressful as buying your first home. But at Freelancer Financials, we can help you find the right mortgage to suit your specific needs. What's more, we're here to help you with the whole buying process, saving you valuable time and effort.
Whether you want a tracker rate, flexible offset or a fixed rate mortgage, we'll take care of business for you. You can then carry on as normal, focusing on what’s important to you.
Why contractors encounter problems
The mortgage market is as competitive as it’s been for years. Not least the sector for those who've proven payment history and are looking to move home.
But for contractors and freelancers, securing a mortgage presents its own challenges.
Visit any contractor forum or speak to other contractors who've recently applied for a mortgage. You'll find so many horror stories of difficulties they've faced on the High Street, you may think it's an impossible task.
True, approaching in-branch staff direct is a headache. Not that it's their fault; they're not trained to deal with specialised applications.
That's where going through a specialist mortgage broker presents you a new, stable opportunity.
High Street lenders need to determine how much you can borrow. To work that out, they first need to calculate what your relevant earnings are for lending purposes. And that's where the problems contractors face begin…
You're a square peg in a round hole on the High Street
…to work out how much you can borrow, staff will apply their standard lending criteria. As you're drawing a low salary, your 'take home' won't cut it .
That's because many self-employed contractors working through a limited company draw a small salary. They also restrict dividend payments to avoid higher rate tax.
This is great for tax planning purposes. But it also has the unintended consequence of reducing the amount you are eligible to borrow. It affects your potential home mover mortgage upper limit using the standard criteria used by most lenders.
They may otherwise expect limited company contractors to produce at least 2-3 years accounts. For those who can’t, the next stop will be the exit door. But even if you do have 2-3 years accounts, in most cases they won’t reflect your full income.
Why accounts and SA302s don't work on the High Street
A good accountant will always look at ways to help you minimise your taxes. Contractors employed through Umbrella payment structures experience similar problems with their payslips and P60s.
But you shouldn't have to sacrifice your standard of living just because you want to move home. Just the opposite.
It begs the question, "why spend hours searching the internet for the best mortgage deals available?".
Right now, you can take advantage of our expertise and contacts to identify the best mortgage for you.
We've negotiated “High Street” Mortgages for Contractors
At Freelancer Financials, we work closely with the mortgage lenders' senior underwriters. This is the only way to ensure that a lender fully understand your payment structure.
We can prove to you that we can secure you the same “High Street” mortgage as that of a permanent employee.
It's taken us a long time to get here, but we've simplified the whole mortgage process.
We’ve agreed bespoke contractor base underwriting with senior underwriters from “high street” lenders. This enables us to use your annualised contract amount as relevant earnings for lending purposes.
What that means for you is that we can secure you competitive mortgage rates from mainstream lenders. Not all lenders have embraced contract based underwriting.
But those who have base their mortgage offer on a multiple of your gross annual contract earnings. This means you can borrow as much as 4 to 5 times your gross annual earnings to move home.
For example, if you’re on a daily rate of £400 (2,000/week), you could be able to borrow approximately £432,000. For a rough guide, enter your details in our contractor calculator:
Contractor Mortgage Calculator
How much can I borrow on my daily rate?
Potential Borrowing = £
For a more definitive offer, request a call back or send us your information.
Why Choose Freelancer Financials to arrange your contractor mortgage?
In recent years, we've put in an enormous amount of effort to agree special income underwriting criteria. Not just with one or two, but with a a whole host of High Street lenders who'll now base their offer on a multiple of your contract rate alone.
We also bypass the inexperienced branch and call centre staff. No offence to them, but senior underwriters want us to keep it that way, too. Contractors' earnings can get complicated. In-branch staff are not accountants.
So we talk to the key decision makers who understand your unique employment status. This ensures everyone dealing with your application can process it without the usual hassle.
We know that “time is money” for Contractors. As such, we offer a streamlined service, offering advice via phone, email and post. It saves you the hassle of long face to face meetings, when you could be earning. And it helps to fast track the application process, getting you into your new home sooner.
Whole of market home moving advice
We are an authorised independent mortgage adviser in our own right. We are answerable to, regulated and authorised by the Financial Conduct Authority.
The home mover mortgage advice we provide is an unbiased, ‘whole of market’ service. Not tied to any one lender, we can source the best mortgage deals available to suit your needs and expectations.
Our advisers are all experts and experienced in arranging mortgages for UK contractors. The advice they offer is amongst the best on the internet; why look any further?
Professional Service with Integrity
Our efficiency, dependability and integrity has established us within the contractor community. We pride ourselves on providing a fast and efficient service for all our clients.
We are the real deal and a brand that you, like them, can trust.
Moving home can be fraught with hiccups and delays, especially if you’re in a chain. At Freelancer Financials, we do our utmost to ensure that your mortgage completes on time.
If there is a chain involved, it won't be you for whom everyone else is waiting. Funds will be ready and waiting for you the instant the keys to your new home are available. Even if you aren't! ;)