Why is it difficult to get a mortgage as a contractor?

It can be very difficult to get a mortgage as a contractor due to the nature of your working pattern. This is because you are unlikely to have a consistent monthly income, and may take several long breaks or holidays from work. Typical high-street lenders tend to favour workers with a steady income- something that is not always possible in your line of work.

What are the alternatives?

  1. Approach a contractor friendly lender. There are various companies out there that can help you to find a mortgage. Make sure that you find a lender that works for you and your needs, a specialist lender can help with this.
  2. Take a look on their website– check out their reviews and find out what services they actually offer you as a contractor.
  3. Documentation – ensure that you can demonstrate to a lender that you are a good investment. You should make sure you provide them with an up to date copy of your CV, to show your experience as a professional, and a copy of your existing contract, to show current earnings.
  4. Finances – make sure that you have a reasonable deposit sum. The more money that you have to put down on a property, the more chances you will have of getting a good deal on a property. Also make sure that your credit rating is up to scratch.

The UK’s leading contractor specialist broker is Contractor Mortgages Made Easy. CMME attempts to put contractors on a level playing field with other workers. They believe that contractors should not be disadvantaged or penalised when it comes to getting a mortgage.

If you would like more information please click here, or call 01489 555 080 to speak to an experience consultant.

This is a guest blog from Contractor Mortgages Made Easy.  At Clearways Accountants we have teamed up with CMME as a number of our contractor clients have struggled to obtain property mortgages from the high street lenders.