Top tips on acquiring a contractor mortgage.
When seeking a contractor mortgage, below are some tips to consider for your search and application to be successful:
1. Don’t assume the headline rate is the one that will apply for the term of the mortgage. Many lenders offer a special rate at the beginning of the term as a form of hook. After the initial period, the rate will revert to the lender’s SVR. Consequently, the correct calculations must be done to identify the true cost, which can then be used to compare to other deals and identify the best value option for you.
2. Make sure your supporting documentation is correct and up to date. Not all lenders apply the same criteria when it comes to assessing your application. Consequently, the documentation asked for will vary. Regardless of what’s asked for, making sure all your records are accurate and up to date is essential to strongly support your application.
3. Improve your credit rating. As in the previous point, not all lenders take the same approach here. However, paying attention to your rating and taking steps to improve it where possible helps to pre-empt some of the scrutinies your application will be subject to.
4. Always consult a specialist broker, such as Deal Direct. We’ve engaged strongly with lenders over the years, passing on feedback and influencing product improvements. As a result, we know which lenders are the most responsive, flexible and offer the most affordable rates. We also know which lenders fully understand the nature of contract work. These are lenders who are open to receiving applications from you, who assess them fairly and on an individual basis.