There are a spectrum of possible reasons why you may have found your way onto the Roots Mortgages website. Firstly, welcome! Secondly, we hope we can provide the information and services you need.
One reason people discover us is because they are on the lookout for a contractor mortgage broker. We specialise in this field, providing contractors and freelancers with our services and helping them find that dream home. This extends to include Limited Company Directors too.
But some visitors to the site may be asking ‘what is a contractor mortgage broker?’ or ‘what does a contractor mortgage broker do exactly?’ You might have been recommended getting in touch with a contractor mortgage broker by a friend or colleague, but not really sure how one will be able to support you in reaching your end aims.
The good news is any questions you have are things we have likely heard many times before. At Roots Mortgages, we understand the kind of queries people have around our specialist area and want to provide the requisite level of support.
In our latest blog, we have picked out some of the common questions we hear and looked to give you the answers you need.
Can contractors get a mortgage?
This is a common question in the contractor industry generally. The answer is an unequivocal YES, but sometimes it can be trickier than for other types of worker.
This stems from the long history of problems contractors have faced when looking to get a mortgage. All too often, contractors have found it hard to find a suitable one.
Some lenders make contractors jump through unnecessary hoops with regards to proving income and their ability to meet repayments.
This was particularly difficult in years gone by when ways of working were pretty rigid, and contractors seemed to be breaking the mould.
In the modern age, lenders generally have a better understanding of how many people choose to work. This means there are usually better processes to support contractors seeking a mortgage. However it’s not always plain sailing, which is why companies such as Roots Mortgages exist – to make that process smoother.
How can I get that perfect mortgage as a contractor?
There are a few ways to approach this. You can go it alone and look to target lenders you think will be able to provide you with the kind of mortgage you seek.
But bringing a broker into the fold can help you to ensure that your mortgage is water tight, fits your requirements, and places you in a good position moving forwards.
It’s easy to be put off by broker fees if you are looking to save cash during your move. But ultimately, if you get a mortgage that isn’t fit for purpose or truly affordable as a contractor, the financial problems down the line could be significant.
This is why bringing in a contractor mortgage broker is something highly recommended. It gives you a better chance of getting that perfect mortgage as a contractor and doing so in a sustainable and affordable way.
How much can I borrow with a contractor mortgage?
This is something that naturally can only realistically be answered on a case-by-case basis. It depends on your personal circumstances, financial clout and ultimate aims regarding your home.
However there is no difference between how much you can borrow as a contractor and how much you can borrow if you work in a traditional way. So long as you have the right guidance and work with good people, you can secure a contractor mortgage that is essentially identical to what you would get if you didn’t work as a contractor but in traditional employment.
Our mortgage calculator can give you a pretty good idea of what kind of a figure you could be looking at.
What will I need to provide in order to secure a contractor mortgage?
Beyond the usual proof of identification elements, lenders will typically want to see the income of a contractor over the course of 2-3 years. They will therefore ask to see your accounts or tax returns across this period.
This means that keeping these up to date, accurate and in check is a good step forward if looking to secure a contractor mortgage. This will stand you in better stead when a lender calculates the risk of lending to you.
What can I expect when working with a contractor mortgage broker?
Each broker is naturally somewhat different in how they do things, but there are a few probable milestones that are reflected in the processes of the top brokers.
At Roots Mortgages, we use a six-step process when working with our clients. The first is the initial contact before moving onto the fact finding stage. This is where we work out your situation and some of the potential challenges you may face in securing a mortgage. The third stage is where we make a series of recommendations to you based on what we feel will help you get the contractor mortgage you seek.
The fourth stage is the application. This is where we look to start brokering and arranging the best contractor mortgage for your circumstances. As a fifth stage, we discuss protection requirements to keep you and your money safe within your new mortgage. And sixth and finally, we successfully complete the process and you have a home to dream of.
This is how we go about things at Roots Mortgages. We hope you have found this blog to be informative, and if you have any further questions, do not hesitate to reach out to our team.