Buying a house or property is a huge decision. It’s even more of a challenge if you are self-employed or are a contractor. You probably know all too well it can be a headache as you won’t have a regular income to demonstrate you can pay the mortgage repayments. However how can you get a mortgage? We tell you more about what contractor mortgages are and how you can benefit from them.
What is a contractor mortgage?
First we need to know, what is a contractor mortgage? It’s a type of mortgage designed to suit the needs of contractors and the self employed. You would need to do some research to find the right mortgage broker who can provide the right loan for you. Many can help you with just an indication of your daily or weekly contract rate. By choosing specialist brokers and not general mortgage brokers, you will be able to find the right broker and mortgage.
What are the rules of thumb when taking out a contractor mortgage?
Have at least 15-20% of your chosen property as a deposit value. Since the recession, we have not seen anything like 100% mortgages to cover the cost of the whole property. Having more money as your deposit means you will have less debt and a lower percent to pay as part of your mortgage repayments.
Ensure your credit score is high. This will improve your chances of getting a contractor mortgage. If your credit score is low, have a bad credit history, a history of paying credit cards late or paying the minimum balance, it could hinder your chances of a good contractor mortgage. Click here !
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