To help Contractors understand contractor mortgages, we have prepared this FAQ page cum mortgage guide. On this page, you will find in-depth information on how mortgages work, what are the challenges contractors face and FAQs posted by Contractors.
Q1. What is Contractor Mortgages?
Ans: Mortgages for Contractors are known as Contractor Mortgages. It is simply a term that has become very popular and is widely used by banks, brokers, mortgage lenders, financial institutions and building societies.
Q2. Who can apply for Contractor Mortgages?
Ans: Anyone who is a Contractor can apply for Contractor Mortgages. It can be a Limited Company contractor or an Umbrella Company Contractor.
Q3. Can I apply for a mortgage if I am new to contracting?
Ans: Yes, why not. It doesn’t matter if you’re new to contracting (including those who have switched from permanent to contracting recently) or a seasoned contractor, you can apply as long as you are a Contractor.
Q4. Who are the mortgage brokers?
Ans: We have partnered with Contractor Financials and Super Contractors. They are Financial Conduct Authority (FCA) regulated mortgage brokers with offices across the UK. Award winning mortgage brokers who have helped thousands of contractors secure a mortgage.
Q5. Do I need to pay a broker fee?
Ans: Super Contractors are no fee mortgage brokers, they’re paid commission by the mortgage lenders; while Contractor Financials charges a broker fee.
Q6. Which type of mortgage products do specialise in?
Ans: We can help with all types of contractor mortgage products:
Q7. Who are the mortgage lenders you work with?
Ans: We work with almost all the contractor friendly mortgage lenders. We’ve negotiated unique and exclusive mortgage deals with lenders like Halifax. See the full list of mortgage lenders below.
Q8. How much can I borrow?
Ans: Mortgages are based on a multiple of your day rate. Contract day rate is multiplied by the number of days you work in a week multiplied by 48 weeks. Multiply this with 4.5 to find out how much you can borrow approximately.
We can help you secure best mortgage deals with competitive interest rates, right up to 90% to 95% LTV (Loan To Value).
Check your mortgage eligibility / affordability or find out how much you can borrow using our contractor mortgage calculator
Q9. How much deposit is required to secure a mortgage?
Ans: It varies. We help contractors secure a mortgage at lowest possible interest rates, so that they can put more savings aside providing a larger deposit.
Q10. What are the documents required to apply for a contractor mortgage?
Ans: Following is the list of documents required to secure a mortgage:
More documents maybe required depending on your contracting status. You would be required to post your documents (including any VISA or ILTR cards) via recorded delivery to our office address. Once we receive and after verifying your documents, we’ll send it back to you same day.
Q11. What is the mortgage valuation process?
Ans: Once all your documents are assessed by the lender, the valuation is made. We’ll update you and liaise with the estate agent.
Q12. Can I apply for a mortgage if I have adverse / bad credit history or a County Court Judgement (CCJ)?
Ans: This depends on case to case basis. We would suggest you to get in touch with us with your requirements and tell us your part. We’ll surely try our best to assist you with this.
Q13. How long does it take to secure a contractor mortgage?
Ans: Agreement in Principle (AIP) / Decision in Principle (DIP) is usually been made within a few hours’ time. However, for the entire process to complete, it may take anywhere between 2 to 4 weeks.