You’ve probably encountered countless people cautioning, “You’ll struggle to secure a mortgage because you’re self-employed.” It’s natural to assume your options are limited. But that’s not the case—it’s all about choosing the right mortgage and presenting your earnings accurately, and that’s where we step in.
Understanding How Contractor Mortgages Work:
Contractor mortgages function akin to standard mortgages—borrow the needed amount to buy a property, make monthly payments with interest, and eventually pay back the mortgage within the chosen term.
However, it’s far more intricate than it sounds! Numerous variables come into play, including:
Diverse interest rates Various charges Specialised mortgages for specific situations Borrowing across different periods Varied repayment structures Lenders’ individual affordability assessments We’re here to guide you through this complexity.
Available Mortgage Types for Contractors:
A multitude of financial products cater to your needs, including:
Repayment Mortgages: Pay back borrowed capital and interest monthly, owning the home outright at the contract’s end (usually 20-30 years). Buy-to-Let Mortgages: Suitable for renting out properties rather than living in them. Interest-Only Mortgages: Pay only the interest monthly, needing to repay the capital at the contract’s end, now deemed high-risk and more challenging to obtain. First-Time Buyer Mortgages: Designed for first-time buyers, with potential government incentives. Flexible Mortgages: Offer flexibility in repayments—pay more or less as per your financial situation. 95% Mortgages: Suitable for those with a small deposit (five percent). Offset Mortgages: Link your mortgage and savings, reducing the interest you pay. Cashback Mortgages: Offer cashback on agreeing to the deal, but some deals may not be as appealing. Capped Rate Mortgages: Variable rates with a cap on the maximum interest increase, providing security. Discounted Rate Mortgages: A reduction on the lender’s standard product (SVR mortgage), though subject to fluctuating rates. Tracker Mortgages: Rates move in line with a nominated interest rate (e.g., Bank of England base rate). Variable Rate Mortgages: Lender’s basic mortgage with fluctuating rates—often not recommended. Fixed-Rate Mortgages: Popular for stability, offering a set mortgage rate for a period. We’ll navigate these options to find the right mortgage for your unique situation. Call us today for a free, no-obligation discussion.
Give us a call for a tailored quote to suit your contractor position and circumstances. Get in touch or call us to speak with one of our expert mortgage brokers on 02081437777.