Top 5 tips for contractor mortgage success.

Five ways to improve your chances of contractor mortgage approval. 

1. Use a specialist contractor mortgage broker.

Don’t assume you can achieve mortgage success on your own. The market in general has tightened, and now there are loads of hoops to jump through before you can be approved. This is especially the case if you are a contractor, and don’t neatly fit within high street lenders box ticking criteria.

You need to access lenders who use underwriters familiar with the world of contracting, who will look at your application on an individual basis. It is there for advisable to seek out a specialist contractor mortgage broker with access to all deals market-wide.

2. Save at least 10% deposit.

The days of 100% LTV mortgages are over, and to get a deal these days you need a good deposit. 10% should be enough, however be aware that the larger the deposit you have, the more competitive the rate will be.

For advice and a quote call 0800 048 8828.

3. Keep your credit rating as good as possible.

If you have a poor credit report you are likely to be refused a mortgage, this is the case even if you have a good deposit and a good income. Times have changed and lenders are now strict about who they will lend to – they don’t like risk.

4. Ensure your contract is up to date.
You will need to provide a signed and up to date copy of your contract, stating the length of your contract and your contract rate.

5. Keep within your limits – stick to what you can afford to repay.
Be realistic about what you can afford to pay each month.  You might find you can borrow more, but this maybe more than you can really afford.

When looking for a contractor mortgage speak to one of our specialist advisers at Deal Direct. We can help you climb on the property ladder, move to a new home or simply remortgage.