With the expansion of the mortgage market, contractors have more opportunities to use the products available in these markets to finance their property. Here are some tips to help you get the most out of your contractors.
What is a Contractor Mortgage?
For a professional working as a contractor, the amount granted to a mortgage applicant against property collateral is called a contractor mortgage. A contractor is a person or group who does not have a permanent formal contract and works with the employer through an agreement for a specified time. The importance of this issue is that some lenders consider special conditions for lending to this group. These include IT contractors, accountants, doctors, building contractors, and lawyers.
How is a Contractor’s Income Assessed?
One of the most important differences between a normal and a contractor mortgages is the basis for assessing the contractors’ income. Because a contractor does not have a formal employment contract, evaluating these people’s affordability is essential to lenders and contractors. Lenders use specific criteria to assess your income accurately, but lenders’ approach in this direction is very different. Therefore, using the guidance of large loan brokers can connect you to lenders, which in turn increases your chances of getting a contractor mortgage that suits your circumstances and needs.
As a Contractor, How Long Will Your Accounts Be Reviewed?
Most lenders assess contractor’s accounts cash flow for the past year. However, they take different approaches, and some calculate the contractors’ affordability based on their daily rates. The stability of the contractor’s bank accounts who have just entered the industry is also assessed. In this way, lenders determine whether your income meets their criteria.
How Important is the Period of Contracting Work?
Some lenders offer a minimum period for large mortgage applicants. However, this criterion varies between different lenders. The lenders evaluate fixed or short-term contractors in different ways. Getting contractor mortgages from high street lenders is also a significant challenge for contractors and professionals. However, the longer your contract history is or the more recently your contract is renewed, the more your chances of getting a contractor mortgage. Thus, the role of a professional and experienced large loan broker in delighting the large mortgage applicants will be vital.
How Much Can You Borrow As a Contractor?
The mortgage amount and the lender rate will largely depend on the income. You can estimate the maximum amount of mortgage you will get according to your affordability. Meantime, the large mortgage rate and the deposit amount may significantly affect the amount of mortgage you will eventually receive.
How Can I Find a Lender As a Contractor?
Due to the nature of the contractor mortgages, these mortgages are not available to everyone, and regarding your financial situation, you can use the services of AWS Mortgage experts and experienced advisors to get the best products. AWS Mortgage experienced advisors are aware of new methods of contracting revenue. According to the critical criteria of lenders, they can adequately assess the income of contractors and professionals and examine their bank accounts. Regarding their activity period, AWS Mortgage advisors will also suggest the best products to contractors. Finding prices and conditions for products on the market is very complex and challenging, given that different lenders meet different criteria for contractors. But AWS Mortgage specialist advisors have vast experience of doing several similar cases and can help you along the way. They have access to a wide range of high street lenders keen to lend to contractors and professionals.
Ashley Slade is a Business and finance Expert and Writer at AWS Mortgages at London. We offer our clients, with diverse income streams and resources, a tailored financial solution.