- Day Rates & Hourly Rates
- From 5% Deposit
- Limited Track Record
- New Contractors
- Employed & Self Employed
- Zero Hours
- Multiple Contracts
- Common Sense Underwriting
- No Credit Scoring
Mortgages for Contractors
The contractor market in the UK has exploded in recent years and the payment vehicles and structures vary significantly. Typically, contractors who have recently started contracting or who contract through an umbrella company, tell us of the challenges they face when proving their income. Some may not yet have full accounts, others may receive ‘employed’ income through PAYE and some may have the added complication of using a CIS scheme.
Whatever your circumstances, we are able to help.
We will arrange your mortgage on the basis of your contractor day rate and can generally secure you highly competitive finance on your contract rate alone. In contrast, many of the High Street banks and building societies will require annual accounts. Our expertise and specialism can get your case agreed directly with the underwriter and one who understands how to assess your relevant earnings for lending purposes. This avoids disappointment and the unnecessary waste of both costs and energy, with a failed mortgage application.Read More >>
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.
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
In order to process the mortgage application we will need
- Your latest signed contract confirming your daily rate
- Your CV
- 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
- 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.