Contractors Mortgages in London

  An increasing number of people are going self-employed. Setting up their own businesses and working for a variety of employers on short or longer-term contracts. Contractors mortgages in London. While this may give you more flexibility, it can make it trickier to get a mortgage, particularly if established a relatively short while.

Contractors, often working in IT, finance and construction, can therefore find it difficult to get a mortgage as not all lenders will take all of their contract income into account. However, there are some lenders who have more preferential terms for contractors.

AWS lenders are best suited to mortgages for contractors finding the right deal for your circumstances at a competitive rate.

Day rate versus salary and dividends

  However, all is not lost for contractors looking for a Mortgage – as long as you know where to go. The Problem is that the majority of high-street lenders don’t really understand Contractor Mortgages. Many lenders treat Contractors as self-employed applicants, assessing income based on salary and dividends rather than the day rate model. This means borrowers tend to end up with a smaller mortgage than they would otherwise.

Where are the contractors mortgages in London to be found?

  Picking up the phone and calling a number of high-street lenders directly or going on their websites.  Walking into branches being impossible right now – is unlikely to result in finding the best contractor mortgages in London on the market. AWS Financial Services, which specializes in contractor mortgages, is the best place to start. We receive scores of inquiries from contractors looking for contractors mortgages in London advice (look at our case studies for examples of contractors we have helped). AWS have years of experience finding the right borrowing for your needs.

We have come to specialize in this area due to the sheer volume of demand, so are well placed to help contractors looking for a mortgage. Whether it ‘s to purchase a new property or if you are mortgaging. We have found contractor mortgages for everyone from a client on a fixed-term contract that was about to expire to contractor clients needing to borrow at relatively high loan-to-values.

As criteria can vary considerably between lenders. We pride ourselves on our bespoke advice, ensuring you get the right contractor mortgage for your circumstances on competitive terms. You won’ t have to worry that you might have got a better deal if you had gone somewhere else; indeed , it is more likely that we will help you find a deal that you may otherwise not have had access to.

How Much Can Contractors Get a Mortgage?

Some contractor-friendly lenders use contractors’ day rates to calculate contractor mortgage amounts. They multiply the number of days and weeks (no more than 48 weeks in a year) that the contractors work in a year to get the approximate total income of the contractors.

Do Contractors Need More Deposits to Get a Mortgage?

Getting a contractor mortgage doesn’t necessarily mean paying a higher deposit because there are lenders that have more favorable terms for contractors. But the higher the deposit amount, the lenders will consider more reasonable rates and conditions for contractors. The most important is saving more and paying more deposits to get a contractor mortgage with better rates and conditions.

5 Important Tips for Getting a Contractor Mortgage

For contractors to be in the best position to get a mortgage, it is better to take the following steps;
  1. Improving the credit score – evaluating the credit score by taking the necessary steps to improve it is one of the things that contractors should do before applying for a mortgage. Actions such as paying bills on time and settling credit card debt are among these actions.
  2. Creating a continuous work pattern – Gaps between contractors’ contracts are always one of the lenders’ concerns. Therefore, contractors must provide lenders with documents proving the continuity of their contracts and the absence of gaps
  3. Renewal of contracts – If contractors can get approvals from their employers to renew their contracts, they will greatly reduce their credit risk, and lenders will be more motivated to give them mortgages.
  4. Providing required documents – Contractors must do their best to prove their monthly income to lenders. Collecting invoices, bank statements, and accounts that show contractors’ operating expenses will convince lenders to prove the contractors’ affordability.

Using a specialist contractor mortgage advisor

Identifying lenders’ assessment criteria and contractor mortgage processes is complicated for many contractors. On the other hand, it is very difficult and time-consuming for contractors to search and compare the options. For this reason, using a specialist contractor mortgage advisor with enough experience and knowledge can help contractors greatly. An experienced broker can quickly collect, compare and evaluate the rates and terms of different lenders. In this way, contractors can choose the most suitable option that suits their financial conditions in a short time.

Contact us for any Enquiry

  If you have any questions, please get in touch on +44(0) 203 488 1541 or enquire at [email protected]. We will talk ask some questions, before comparing all the deals and making suggestions based on your circumstances. AWS guide you through the process, reducing stress and hassle, while ensuring we find you the right mortgage. We provide contractors mortgages in London