Contractor Mortgages – how long do you have to be a Contractor to get one?
Many questions are asked by contractors when it comes to mortgages for contractors. Contractors must work a certain amount of time to qualify for contractor mortgages. In instances like these, it is important to ask all of the questions that the contractors may have and to ensure that the issues are answered thoroughly and to where they can be understood completely. The last thing a contractor needs is to be lead to believe the wrong information.
How Long Before A Contractor Can Get A Contractor Mortgage?
Before mortgages for contractors can be obtained, the contractor must first be able to present three years worth of accounts before becoming eligible. If a contractor intends to apply for a mortgage, the contractor must have access to several years of accounts to do so. The contractor will need to show a slow rising income from contracting during the applicable timeframe. Other information that is required when applying for a contractor mortgage is a copy of the current contract, a bank statement, and a legal photo identification to secure the mortgage contract.
What If You Are A New Contractor?
Now do not think that because you have just begun a contract that you are less likely to qualify. Some contractor mortgage brokers can secure a mortgage for you even though you have just started contracting. Senior mortgage underwriters at the lender’s office make this possible for newly established contractors. If you are a self-employed contractor, you will not need a larger deposit either. A contractor is not required to deposit more; however, if the contractor does, the interest rates will be lower. More explained here.
Does a Contractor Have the Option of Using a High Street Bank Instead?
Contractors can use a high street bank if they wish to do so. However, smaller companies that have experience in assisting contractors with mortgages is more valuable to the contractor. The application process will be dealt with and reviewed in an unbiased and efficient manner. Contract mortgage brokers know how to get the best price for you as a customer and as a contractor and are willing to assist the contractor every step of the way. In addition to ineffective application reviews, remember that failed applications on high street banks affect your credit history for the future. This means that it is riskier to apply through a high street bank rather than a company that knows the business and works to have the contractor’s application approved the first time. If the request takes more than one time of review, the contractor’s credit history will not be affected.
There is no set time as when a contractor can receive a contract mortgage; it is just wise to have some accounts established before applying for the mortgage. This application process will allow the contractor to have a complete application, and it will be less likely that the mortgages for contractors are denied.