Mortgages for Contractors

As contractor specialists, we understand that limited company payslips and contractor accounts do not fully reflect the ability to afford a mortgage. Contractors that we assist, like many professionals such as barristers and accountants, look to gear their earnings for tax efficiency and in doing so, standard accounts often do not reflect true disposable income. That is why the accounts are not required for the lending decision.

We are able to use your contract rate upon which to calculate your affordability, rather than accounts.  This allows you to borrow significantly more than if you were being assessed using lenders’ standard affordability criteria.

We will work with lenders who will consider your

• current daily rate
• multiply by 5 days per week
• Then multiply that by up to 48 weeks for a year
• The resulting figure gives us an annual salary

The annual salary can then by multiplied by up to 4.5 to 5 times this figure, depending on your circumstances.

 Case Study

John is a contractor on a daily rate of £750 per day.

We multiply his daily rate by 5 days to confirm £3,750 per week.

We then multiply this weekly rate by 46 weeks to confirm salary of £172,500 per year

We then multiply this figure by 5 (lender multiple)

This gives John maximum borrowing of £862,500
 

The process

In order to process the mortgage application we will need

1. Your latest signed contract confirming your daily rate
2. Your CV
3. Your last 3 months’ bank statements confirming your contract earnings

It is as simple as 1, 2, 3

Once we have assessed your situation, we will obtain a formal decision-in-principle from the lender.

Once you have found the property, we will then fully package the case to the lender maximising success.

We typically assist the following contractors:

• IT Contractors
• Medical and Pharmaceutical contractors
• Oil and Gas workers
• Engineer and Telecoms consultants
• Management and Risk Consultants
• Marketing Consultants
• Legal contractors inclusing solicitors, Counsel, barrister’s clerks and para-legals
• Accountants
• Actuaries
• Architects and Surveyors

We recently assisted a bricklayer paid 19 pence a brick, contracted to lay 1,000 bricks a day. (calculated at 19p x 1,000 x 5 x 46 x 5 = mortgage of £218,500)

If you require help and assistance with a contractor mortgage, call us today or complete the online form and we will make contact to discuss your requirements.