Climbing up the ladder is easy for some contractors especially those in construction, however it has also been reported that the number of freelancers, not only, on the property ladder but also moving up it, has now doubled compared to a year ago.
In order to ensure that those securing a mortgage can repay, the Mortgage Market Review (MMR) came into existence. This was of concern especially to contractors however after lobbying efforts have succeeded, mortgages for contractors can now be completed using their contract and bank statements alone when assessing income.
The length of the mortgage interview has increased, as lenders require more information regarding income and expenditure to determine the most appropriate product for the mortgage applicant. Affordability is also on the lenders’ mind and so may be wary if the contractor is out of work for more than 4-6 weeks each year.
It is possible that fees may be introduced in order to cope with the extra advice process that is to take place so it is paramount to ask in advance with regards to any costs that may be charged.
Visit our contractor mortgage page for more information and a free quote.