Archive: Contractors and self employed struggle to get a mortgage
Latest research from Accord has found that contractors and self employed struggle to get a mortgage. Their research showed that 22% of contractors and self employed workers believe it would be easier for them to secure a mortgage if they were employed full-time. This was reported on the Mortgage Strategy website on 28th November*.
The research also found that 29% think that lenders see them as a bigger lending risk and 16% have found the mortgage application process difficult.
What this means for home buyers and home owners
Adam Nanson, independent mortgage adviser at Your Mortgage Expert comments:
“Having worked with contractors and self employed workers for a number of years, I am not surprised by the results from this survey.
“We often speak to contractors who tell us they have struggled to secure mortgages on the high street. This is because many of the in-house mortgage consultants for high street lenders aren’t familiar with the way contractors are paid. They often base a contractor’s mortgage on accounts or other tax efficient methods that may be used, which don’t truly reflect what individuals earn.
“However, there are a number of lenders with whom we regularly work, that do understand self-employed and contract workers and are keen to lend to them.”
How Your Mortgage Expert can help
Adam Nanson continues:
“The main difference with contractor mortgages is how the lender assesses your income. Rather than using a “one size fits all” model. Most lenders that welcome contractor customers have more bespoke lending criteria aimed at the financial needs of contract workers.
“We are familiar with working with these lenders and can help you secure a mortgage, even if you have found the process painful in the past.
“We don’t charge for the initial consultation and you won’t have to pay us a penny until you complete on your mortgage. And, we will work hard for you to get you the most suitable offer for you.”
To speak to Adam Nanson about your next mortgage, ring him now on 01722 322683 or complete a contact us form and let him know when he can call you back. Or visit our dedicate page for contractors on our website.
The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. SECURING SHORT TERM DEBTS AGAINST YOUR HOME COULD INCREASE THE TERM OVER WHICH THEY ARE PAID AND THEREFORE INCREASE THE OVERALL AMOUNT PAYABLE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
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