Advias did a phenomenal job allowing me to borrow much more than any other mortgage adviser had said was possible. Thank you! I couldn’t be happier.
How much can I borrow?
This will depend on how you are paid. typically a contractor will receive a day rate income. This day rate will be multiplied by 5 to obtain the weekly rate and then calculated on a 46 – 48 week basis. Some lenders calculate the income differently but the above will be a good guide.
For example, a day rate of £500, x 5 provides a weekly income of £2,500 x 46 is an annual income of £115,000. The lender will then use this for affordability and will generally lend 4 – 5 times this amount.
Monthly or Annual contracts
Certain mortgage lenders can use the income evidenced in a contract where a monthly or annual income is stipulated. This is not the norm and will require a specialist lender.
Best contractor mortgages
One of the benefits of using a mortgage broker is that they can source the best mortgage solution for contractors.
An experienced contractor broker will be able to access specialist lender products, products not available on the high street and may be able to raise a larger mortgage amount.
Contractor mortgage rates
The interest rates are not typically higher. However not all mortgage lenders lend to contractors.
An experienced mortgage broker will know which are the best lenders for this type of mortgage and negotiate the best terms.
Can paying into your pension affect your ability to raise a mortgage? We all have our financial goals. Usually, the greatest ambition for a young
Client Requirements Purchase price – £2,500,000 Loan amount – £1,625,000 Foreign Income Complex self employed income What was the situation? An owner of a private
Speak with an expert in Contractor mortgages
Our brokers are experienced in assessing contractor mortgages and working with lenders that specialise in assisting contractors to obtain mortgages on the best possible terms.