Top features of contractor mortgages
Contractor mortgages are for those people who are self employed or businesses that do not always have a fixed salary. These mortgages are helpful for those who are self employed. They have been introduced keeping the needs of contractors in mind.
People who find it difficult to get a normal high street mortgage can make use of it. In order to get mortgages, you need to fulfil many procedures such as preparing and submitting all the correct documentation. This incurs costs that need to be paid in order to process these documents.
Here are the top features:
Mortgage lenders would be offered specialist mortgage products to the self employed called self certification mortgages, before the credit crises. All you need to do is self-certify your own income rather than provide evidence using trading accounts.
Lenders made it clear that they would not carry any checks and nearly one million people took out these kinds of mortgages. This means that the system was wide open for abuse, with no income checks.
Contractor friendly lenders:
Anyone can get a mortgage as a contractor need not difficult. But you need to work with a mortgage specialist that has contact with contractor friendly lenders. These mortgages have been available since 2001. However, in addition, they offer similar interest rates to standard products, if not better.
These lenders include Skipton, Halifax, Clydesdale, Virgin Money, and Investec. The best mortgage deals are available to salaried employees and also to contractors. These lenders offer bespoke contract based underwriting through a number of contractor mortgage specialists.
Contractor mortgages are available to all contractors who work on a contract rate and can confirm their income using a contract. You need to choose a specialist mortgage adviser to avoid the difficulty of dealing directly with high street lenders, who are not well known with the contracting environment.
In addition, a competent mortgage adviser can arrange a competitive mortgage easily and quickly, with no difficult at all.
Features of these kind of mortgages
A mortgage specialist is they can arrange mortgages for contractors operating through different trading structures and payment mechanisms, including Umbrella payroll, Limited company, and EBT schemes.
There are some amazing rates available for more substantial deposit available at the moment. It is all about being able to speak to the right mortgage brokers.
Mortgage specialist can present your mortgage application directly to underwrite to be assessed on your total contract earnings. “High Street” banks will provide excellent mortgage rates that are simply based on a multiple of your annualised contract earnings. It will be as much as 5 times your annualised contract income.
When you meet a contractor mortgage, you need to take the following documentations:
1)A copy of your latest CV
2) A copy of your current contract conformingly your contact rate
3) Proof of address and ID.
If your credit rating is neat and you have a deposit, this will give you a low risk status. However, this criterion will make you to borrow as much as five times your annual contract rate.