5 steps to choosing the right contractor mortgage lender.

The face of the contractor mortgage market today has changed considerably.

It used to be that mortgages for contractors were very hard to find as well as being difficult to secure, however, this is no longer the case. As the number of people who have opted to work for themselves has grown substantially in recent years, mainstream lenders have responded, realising that this section of the market represents a great opportunity to secure new business.

As the number of lenders has increased, the question now becomes about which lender to choose.

Deal Direct recommend considering these 5 steps:

1. Mortgage type – study all the different mortgage types and contrast and compare how the repayments will vary over different periods of time. How long is the fixed-term rate for, for example, or will you be allowed to offset your savings or over-pay without penalty?
2. Mortgage rate - remember, the cheapest rate does not necessarily equate to the best-value deal. Comparing all UK deals on a like-for-like basis is essential to uncovering the rate that works best for you.
3. Terms and conditions - you must look at these in detail to make yourself aware of your lender’s SVR and whether there are any early redemption fees, etc. How might switching to another deal affect your finances in 2, 3 or 5 years’ time?
4. Customer service - how focused is the lender on you, the customer? Do they have a good reputation in responding quickly to customers’ needs? Are they quick at processing applications and do everything they can to support you with the information they need?
5. Seek professional advice from Deal Direct to help you with all the above. With our expertise, everything can be quickly and easily compared and explained, assisting you to secure exactly the right mortgage solution.

For help with securing a contractor mortgage from the right lender for you,

call Deal direct on 0800 048 8828.