At Specialist Mortgages, we have seen our fair share of unique employment situations and the challenge for a broker in the modern lending landscape is securing a mortgage for individuals who have specialised requirements based on their employment and income. This includes those who are employed on a contractual basis.
What we have found is that more and more people, especially in areas such as IT and financial services, are being employed on a contractual basis. The good news is that more and more lenders are now beginning to consider lending based on the strength of an employment contract. In the past, many banks would not lend until the applicant was able to provide 2 or 3 year’s company accounts.
Generally, a contractor means someone that has chosen to take short-term or fixed-term contractual employment at hourly or daily rates as opposed to a self-employed individual who sells goods or receives commissions.
A fixed contract can give both the worker and employer added flexibility and the contractor could refer to a recruitment agency, sole traders, limited companies and even those who are paid and taxed via a third party often known as an “umbrella company.”
Of course, these individuals need to secure mortgages if they wish to purchase property just like anyone else, but this is where the difficulty can arise as, in the past, a track history of 3 years + was required before a mortgage could be secured.
The good news is that more and more lenders are now offering contractor mortgages and as long as the applicant can prove that the contract is strong enough then they will still be able to gain access to the same range of mortgage products as those that are employed on a permanent basis.
Mainstream lenders are now recognising that there is an increased incidence of workers on contracts especially in sectors such as IT. By working off the value of a contract these banks are able to offer the same great products to contractual workers.
Naturally, having an expert guide you through the process holds key advantages especially if you’re a contractor seeking a mortgage. We have vast experience helping these sorts of clients and we have built up excellent relationships with lenders that offer contractor mortgages.
If you are having difficulty securing a mortgage and you are employed on a contractual basis then we can help. We will only ever charge a fee should we secure you an offer so if you’re in the market for a mortgage but are employed on a contract then phone us on 0345 873 1234 or email us at info@specialistmortgages.uk.com