Want a contractor mortgage? Start here with some helpful advice.
When searching for a contractor mortgage, it is useful to familiarise yourself with the terms used to help you make the right choice.
If you work as a contractor, the same types of mortgage are available to you as to someone who is more traditionally employed. Here are the most common ones:
Repayment Mortgage: your monthly repayment includes both capital and interest and your mortgage is fully paid off at the end of the term.
Interest Only Mortgage: this is where your monthly repayments to the lender include the interest only on the capital amount borrowed. The capital sum should be paid back in full at the end of the term.
Variable Rate Mortgage: the amount you pay monthly varies according to your lender’s Standard Variable Rate. This type of mortgage includes Tracker, Capped and Discounted Rates.
Fixed Rate: the amount you pay monthly is predetermined at a fixed rate for 2, 3, 5, 7 or even 10 years.
The ranges the lenders offer appeal to people in a variety of circumstances. To make sure you pick:
- the right lender
- the right mortgage
your best advice would be to consult with expert contractor mortgage broker, Deal Direct.
Our advisors work closely with you to create a detailed picture of your contracting situation, including how long you’ve been working, your skill level and the demand for your services. This helps us to match you with the right product and lender, which saves you your valuable time and effort.
For more information on which type of contract mortgage would be the most appropriate for you, contact Deal Direct.