Sadly, contractors have always struggled to get competitive mortgages for contractor. As the financial crisis deepens, this means that contractors will often miss out on the dream home as they face even more barriers towards obtaining a competitive mortgage rate from high street lenders. Whereas, people in permanent employment have attracted favourable rates due to lenders having an unfair bias towards them.
This is because contractor mortgage broker view permanent workers as less of a risk than contractors.
Unfair as it may seem, this bias is still strong today if not worse due to the financial crisis.
Help is at Hand!
Over the years, as the contractor market has grown and expanded, some professional organisations and institutions including PCG, Social Networking sites, Contractor Accountants, Recruitment agencies, and Financials advisors have worked hard to convince some banks to view contractors differently.
This has given birth to Contractor Mortgages!
It enables contractors working through different trading structures to obtain a mortgage.Some mortgages for contractor specialiseshave lobbied to get lenders to alter their lending policy towards contractors. Still, has meant that banks are reviewed their traditional underwriting criteria to accommodate contractors.
It is now possible, irrespective of whether you operate through a limited company or umbrella company assessed on your contract rate. In essence, this means that you no longer have to provide financial accounts, payslips or P60s which often don’t reflect your potential affordability.