Remortgages for Contractors
Since the housing peak and credit crunch, there's no guarantee that a home's value is viable for remortgage. As such, many contractors feel trapped by their mortgage lender's Standard Variable Rate (SVR).
The perceived lack of equity may lead you to think that you have no bargaining leverage for the best remortgage deals. That needn’t be the case.
At Freelancer Financials, we've been remortgaging contractors for years. The market today is both buoyant and competitive, and littered with excellent deals…
…if you know where to look.
Why use Freelancer Financials?
Switching your mortgage as a contractor is far easier than you think. At Freelancer Financials, we can secure you competitive rates based on your contract rate alone.
The rates are available at select 'contractor-friendly' High Street lenders. They may even be available from your existing lender, even if you've had no joy yourself.
How can we do this? Because we know how to present your CONTRACT to show your true affordability:
- no accounts;
- no pay slips;
- no tax returns.
The only evidence of income required is a copy of your CONTRACT, confirming your daily or hourly contract rate.
And as important, we have direct access to underwriters - not branch staff - who can interpret what you're worth. It's a killer combination.
We've spent years at the negotiating table to bring self-employed contractors these deals. You won't find them in your High Street branch. An IFA will also struggle to secure you as competitive a rate or access to as much funds as we can.
We've already done the hard work. Now it's up to you to leverage our enviable position as specialist broker of choice.
Why pay more when you can remortgage?
Mortgage lenders make significant profits from homeowners sitting on over-priced standard variable rates. And unless you change, they'll continue to do so.
Face it. They're not going to phone you and tell you they have a cheaper interest rate available, are they?
True, some homeowners put remortgaging on the to-do list. But, yeah - you're a contractor. We all know how good to-do lists are if we don't act on them.
Others have neither the time nor inclination to do anything about their over-priced mortgage. This suits the banks to a tee.
But you needn't be one of those homeowners paying over the odds. You could rejuvenate your financial status by investigating the types of remortgage deals available.
Remortgage deals with benefits
You don't just have to be looking to reduce your monthly payments to want to remortgage.
Yes, that's the main reason people look for a new mortgage once their introductory rate comes to an end.
But there are other valid reasons for doing so. Debt consolidation, including overdrafts, credit card and personal loans is a popular reason.
Looking to raise capital for home improvements is another great way of adding value to your property. Leveraging the equity in your home is a low-cost way to fund that makeover.
Whatever your reason for remortgaging, seeking the advice of a specialist broker is your first and wisest step.
To that end, we have access to a variety of special introductory remortgage deals. We can offer:
- competitive low interest rates;
- longer repayment terms;
- interest only options;
- cash back mortgages;
- free legal aspects and valuations.
How much can you borrow?
The amount you can borrow will all depend upon the lender who has the best remortgage for your circumstances. As a rule of thumb, that's in the region of 4.5 times your annualised contract earnings.
Our calculator takes your day rate to give you a guide to what you can borrow on your contract rate:
Contractor Mortgage Calculator
How much can I borrow on my daily rate?
Potential Borrowing = £
How does your calculator work out what I can borrow on my annualised contract rate? This example explains the maths behind our affordability calculator:
- take your day rate (or hourly rate x8) and multiply that by the days you work per week (usually 5);
- then, multiply your weekly rate by 48, average weeks lenders consider as 'annual';
- this will produce your annualised earnings for lending purposes, which you then multiply by 4.5.
So, a contractor earning £300/day could borrow £324,000 for a remortgage. That's £300 x 5 (weekly total), x 48 (annualised total), x 4.5 (affordability factor).
What documents will we need to submit your mortgage application?
This is where most High Street lenders fluff your remortgage application. They ask for too much paperwork, little of which is relevant. To qualify for contract-based underwriting, you need:
- a copy of your latest contract, confirming your contract rate;
- if there's little left to run on the contract, some lenders may ask for confirmation of continuation or new contract;
- copy of your updated CV, detailing your experience in the field in which you're now contracting;
- three months' bank statements, to confirm that you are earning what your contract says you are;
- proof of ID, by way of passport, utility bill or driving license.
It’s as simple as that, in most instances. Details do vary a little from lender to lender. As does the exact amount you can borrow.
The figures laid out here are a guideline to how much contractors can usually borrow for a remortgage. We know that no two independent professionals operate in the same way.
For a personalised remortgage quote, you can either request a call back at a more convenient time or call or email us with your data.
Recap: why contacting us is your savvy next step
Unlike other mortgage brokers, we have negotiated favourable underwriting terms for contractors and freelancers. The services we offer include:
- competitive rates from High Street lenders, secured on your contract rate;
- independent “Whole of the market” brokerage;
- access to all contractor-friendly lenders and their appropriate full product range;
- special introductory remortgage deals, offering free legal service and valuation;
- same day “Decision in Principle” (because we know what to look for in your contract!);
- borrowing of up to 95% of the property value (select lenders only - see our 'best buy table);
- swift turnaround from application to completion;
- affordable mortgage protection & critical illness policies to complete your peace of mind.
We've helped so many 'trapped' contractors to remortgage, it's now a staple of our business. Whatever your reason, we'd love for you to feel that same freedom. The key is in your hands.