Read this to gain contractor mortgage approval.
Gaining contractor mortgage approval can be problematic if you haven’t put yourself in the best position possible beforehand.
This is because there are still a large number of lenders in the UK whose approval processes are not geared to assess the merits of less traditional forms of income. These lenders tend to use an automated points system to evaluate risk and if you don’t immediately fit the criteria, in the absence of any human intervention, you run the risk of your application being rejected.
You can avoid this unwanted outcome by following these simple steps:
- Before you apply, take a look at your credit score and take the necessary steps to improve it, if needs be. This reduces the risk factor and builds confidence for any lender.
- Compile as much documentary evidence of your finances as possible. Some lenders are more flexible than others but the more you can substantiate your earnings, the better.
- As a limited company, work with your accountant and tell them you are planning on applying for a mortgage. Have them help you prepare a full set of business accounts for submission to the lender.
- Bring copies of current and previous contracts and evidence of your qualifications and expertise in your sector.
- Save as big a deposit as possible to build confidence and secure a better rate.
- Contact Deal Direct to help you find a lender who welcomes applications from contractors.
Our 13 years’ experience has taught us how to match our clients with lenders who truly fulfill their needs. Don’t leave your mortgage search to chance.
Use our expertise to obtain a mortgage that works for you.