We at Roots Mortgages specialise in working with contractors and freelancers to help them negotiate the mortgage market.
In case you are new to contracting or freelancing, or work in this way but have not previously thought about buying a home, then it’s important to know that it isn’t always a straightforward process.
In truth, buying a home is rarely a simple thing, regardless of your profession. But over the years, many contractors and freelancers have found it particularly problematic.
We are dead set on turning that tide however, and our goal is to help as many contractors and freelancers achieve their property dreams as we can.
With this in mind, it is always satisfying to see others in the industry making it easier for contractors and freelancers too. This week, a specialist lender has made enhancements to their affordability criteria for contractors. So we wanted to take a look at what’s on offer.
Which lender is this?
The lender in question is Vida Homeloans. This is a relatively young company, only founded in 2016.
However, Vida has developed a reputation in that time thanks to its commitment to helping every person find a home ‘no matter their circumstances’.
What are the new lending criteria for contractors?
Vida has made a series of changes to its affordability criteria with the aim of making it easier for contractors to land a mortgage deal that works for them.
An important part of this is contractors being able to borrow up to 48 times their weekly rate. This provides greater clarity for contractors when it comes to understanding the kind of figures they can borrow to support their homebuying goals.
Contractors will be considered from the first day of their contract, provided they have at least one year of employment in a similar line of work.
Furthermore, contractors will still be able to apply for a mortgage even if they only have three months left on their current contract.
This is all to create a smoother and easier process for contractors seeking the support they need to get the home they want.
According to Vida’s director of mortgage distribution, the changes are all part of an effort to make the plans of contractors easier to fulfill.
Richard Tugwell said: “We are determined to provide attractive, accessible products that support contractors and the wider self-employed market, who have been cut out of traditional high-street lending. We continue to see strong demand from our intermediary partners and want to continue growing our lending and offering a great service to brokers and customers.”
Greater awareness of contractor needs
These changes from Vida are a concerted effort to make life easier for contractors, in a space which has not always been friendly to them.
Securing mortgages has proved challenging for many self-employed workers over the years, so seeing options such as the one Vida has available within the wider market should be something appreciated by contractors.
Having said this, Vida’s offering may not be the right option for you, and we as contractor mortgage brokers can help provide you with the guidance you need to find that perfect choice.
But Vida should be congratulated for making positive changes within a market where ‘playing it safe’ can all too often be the name of the game for lenders.
