Contractor Mortgages
Helping contractors secure the best mortgage deal
What is a contractor?
A contractor is an individual or business engaged to provide services or complete specific projects for a client, often on a temporary or fixed-term basis.
Unlike permanent employees contractors work independently, commonly hired for their specialist skills or expertise. Their arrangements can offer flexibility for both the contractor and the client.
The majority of contractors will contract through either their own limited company handling their tax & NI or an umbrella company. There are now many people who prefer the freedom of choosing which assignment they work on next and don’t want to be tied to one employer.
How to get a contractor mortgage
- If you are a contractor requiring a mortgage, you don’t need a special product.
Contractors can access mortgages from the full range of UK mortgage lenders because the main consideration is how each lender assesses your income. Criteria can vary widely, for example some lenders will require up to three years of contracting history that includes tax returns and accounts, while others may just accept just your latest contract and calculate your income based on your current day rate. - As well as having the correct documentation to prove your income, lenders will also want to know:
• How long you have been contracting for,
• Whether you were employed previously in that same profession,
• How long you have left on your current contract,
• Whether your current client has previously extended your contract.
Having this information prepared can help your application to proceed - Knowing which lender is right for you is not easy and there is a minefield of criteria to review. The advise of a good mortgage advisor could make the difference between being accepted or being rejected for your mortgage.
Securing a contractor mortgage
Many high street lenders now consider contractor income based on your day rate, making it much easier to secure a mortgage even if you haven’t been contracting for several years.
The important thing is to ensure you meet the lender’s criteria and have the necessary documentation ready to support your application. This approach streamlines the process and opens up more opportunities for contractors. .
Bennison Brown have expertise in mortgages for contractors and we can quickly find you a suitable mortgage. We offer a free initial consultation which includes an evaluation of your circumstances and an illustration to show what mortgage we recommend for you.
Accessing additional services
As well as mortgages, Bennison Brown have access to a network of professionals who ca assist contractors. We can put you in touch with accountancy services as well as a pension and investment advice through our trusted partner, Andrew Graham Wealth Management.
Bennison Brown can support contractors with a number of other services including;
- Producing annual accounts
- Corporation tax calculation
- Book keeping
- VAT return and advice in general on VAT (including the flat rate VAT scheme)
- Payroll
- IR35 compliance
- Personal tax return calculation and submission
They have experienced advisers who can offer advice on pensions provision, as you may have pension pots with different providers from various stages of your career that could benefit from being consolidated.
If you don’t have a company pension scheme, setting up a new personal pension is a smart way to plan for your retirement. Find out more about how we can help you take control of your pension planning here.
Organise a free consultation
Leave us your details or give us a call on 0207 427 6067.
We look forward to speaking to you soon. We don’t use your details for marketing, only to get in touch and speak to you about your requirements.
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