Contractor Weekly, have teamed up with Freelancer Financials, the largest Contractor Mortgage Specialist firm in London to offer competitive mortgages based on contract rate alone.
Even though the majority of contractors have greater earning potential than their counterpart permies, when it comes to getting a mortgage, this often counts for nothing. But don’t worry, many contractors face problems when applying for a mortgage, as the majority of high street lenders are set-up towards lending to PAYE employees. The sad fact is that most lenders simply don’t understand how contractors work.
For the majority of contractors, insufficient trading history or accounts, is often the main reason for having their mortgages applications rejected. Banks and building societies want to see a minimum of 2-3 years audited accounts. They will typically assess your affordability based on salary and dividends drawn – in other words, just the Taxable Element of your earnings.
For contractors trading through a Limited Company this can present a problem when applying for a mortgage. Most prudent contractors operate in a tax efficient way by drawing a minimum salary and restricting dividends to avoid higher rate tax. Perfectly good tax planning, under normal circumstances, and if your accountant is doing this, you DON’T need a new one! However, the downside is that prudent tax planning has the unintended effect of reducing your potential borrowing.
Freelancer Financials can find you a competitive high street mortgage, based on YOUR contractor status!
Freelancer Financials have negotiated “Contract Based Underwriting” with a number of mainstream lenders and building societies. This means that they can arrange a mortgage on your behalf based on a multiple of your contract earnings alone. That’s right, NO Accounts, Pay slips, P60’s, SA302’s or Tax Returns. Instead, your borrowing will be assessed on your current contract rate, projected to an annual earnings total, with the tax planning option to draw a lower salary.
Just multiply your daily contract rate by the number of days worked each week x 48 weeks. Multiply this total by 5 to calculate the mortgage offer you can generally expect. So, a contractor on £550 per day equates to gross annual contract earnings of £132,000 (£550 x 5 x 48). Allowing you to borrow up to £660,000 to buy or remortgage a property.
Paperwork required by Freelancer Financials
It’s that simple.
Freelancer Financials are directly regulated and authorised by the FCA. We provide ‘whole of market’ service, which means that we can provide a suitable mortgage from all the lenders including all of their product ranges.
For contractors with accounts that can show sufficient earnings to borrow what they need, we can source from whole of market to secure the most competitive rate.
For more information read our Contractor Mortgage Guide. Before attempting to apply for any type of mortgage borrowing we strongly recommend that you speak with Freelancer Financials first.
Freelancer Financials are able to utilise bespoke underwriting with the lenders, to offer you borrowing based on a multiple of your entire contract earnings and not just the Taxable Element.
To calculate how much you could borrow based on your contract rate, please complete our online enquiry form and someone will be in touch shortly.
For more information contact one of our mortgage specialists:
By email: firstname.lastname@example.org
By Phone: 020 8421 7999
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED AGAINST IT.
Freelancer Financials is the Trading name of Mortgage Quest Ltd. Mortgage Quest Ltd is authorised and regulated by the Financial Services Authority (FCA). Our FCA register number is 312484. You can check this on the FCA’s website www.fca.org.uk/register or contacting the FCA on 0845 606 1234.