Many people nowadays work as self-employed, sometimes as sole traders or directors of Limited companies. Contractor mortgages are also available for the self- employed, something we find we are helping more and more with.
The keys to gaining a mortgage is proof of your income, a deposit that fits the lender requirements and finally, good strong credit history.You can increase your chances of getting a mortgage by making yourself as attractive as possible to a lender. The larger your deposit as a percentage of the loan you are borrowing, the better. The better your credit score the more likely you are to be accepted.
We recommend reviewing your credit profile regularly and ensuring that it is accurate, ideally with no late payments, defaults or CCJ’s, as this will detract significantly from a lender’s willingness to provide you with a mortgage agreement.
Lenders will generally base their affordability calculations around provable taxable income over the last two years. However, there are lenders available that may accept one year, however these are in the minority.
Use of an accountant whilst not always necessary will generally strengthen your probability of acceptance. Some lenders may only accept certified or charted accountants.
Contractors, success is generally dependent upon, the length of time you have been a contractor for, the industry sector that you work within and proving there have been no major gaps in contracts.