People working as contractors may find it difficult to secure a mortgage with traditional high street lenders. One of the reasons for this is that it is difficult to apply typical lending criteria (usually based on a permenant employees salary) to a contractors earnings. It is possible to secure a mortgage by using a specialist mortgage broker who can show potential lenders the benefits of a contractor’s skills and experience and also the ability to secure future contracts.

Key Takeaways:

• Banks and building societies generally only lend to those who are considered a low risk, and contractors just do not tend to fit in to this category. Although it might seem impossible to get a contractor mortgage, contractors can obtain competitive mortgage funding
• A specialist mortgage broker can help with the process as they will have a thorough understanding of each mortgage lender and how they work.
• There are various other costs involved in buying a house which need to be taken into account including: arrangement fees, valuation fees, legal fees, stamp duty and broker fees.

“Presenting a case is a fundamental aspect for contractors, to ensure they are able to borrow the funding that they need.”

https://www.contractoruk.com/money/guide_getting_contractor_mortgage.html