Contractor mortgage approval – how to increase your chances of success.

Contractor mortgages can be hard to achieve from the high street, and many self-employed applicants who go it alone experience rejection.

The question is why is this case and what can you do about it?

High street lenders like straight forward applications from individuals who tick all the boxes.

While the UK employment market is changing, lending criteria is lagging behind. This means for contractors the ‘computer says no’ attitude often prevails when a lender assesses an application.

Mortgage application income assess.

Employed applicants.

• PAYE is used to establish what you can afford to borrow. In this assessment some lenders many take into account guaranteed overtime but require pay slips to verify the income.

Self-employed applicants.

• Lenders assess your accounts to verify your income. They will take into account either net profit or salary plus dividend. It is usual for a lender to request up to 3 years of accounts.

Contractor complications.

• With contractors, complications arise when applying for a mortgage particularly if you are paid via an umbrella company and your expenses are not added in to your income calculation. In this situation shortfalls can arise in the amount you can borrow.

Achieving a mortgage offer. 

After the MMR UK lenders tightened their mortgage criteria further leaving many struggling to be accepted for a new mortgage or even remortgage to a new deal.

If this describes your situation what can you do?

Choose a specialist lender.

As getting a mortgage as a contractor can prove tough, the best advice is to find a broker with expertise in UK contractor mortgage lending.

The battle is knowing which lender to speak to, you need one with an underwriter who understands the contracting market. At Deal Direct we work with specialist lenders whose lending criteria you can meet.

By choosing a specialist lender you are making sure that your application is assessed by an underwriter who understands the contracting world, this ensures your application will be assessed fairly and favourably.

To increase your chances of approval and for a review of the best contractor mortgages UK wide, call us at Deal Direct.

We can help you find the right mortgage solution to suit your needs.

Our advisers are here to take your call and can help you achieve an offer whether you are looking to purchase a new home or remortgage from an existing offer.

Call today for specialist independent advice.

0800 048 8828.