Contractor Mortgage

funkey_monkey

Hi,

I'm into my second year working as a contractor. There is a good chance that I'll be purchasing my first home within the next year and I want to see what is expected for me as a contractor.

I've got approx. £80k in savings set aside for the purchase - although by te time I get around to the actual purchase I'd hope to have added at least £10k to that amount. Properties I'm looking at are in the £180k price range.

In order to get a contractor mortgage is it still okay to go through an independent mortgage adviser or is there a specialist that I should be going to for this?

What do I need to have prepared in order to get accepted for a contractor mortgage? Is it 2 years work?


Thanks.

kingstreet

I usually ask for current and last/previous contract and a copy of CV. Different lenders have different requirements in terms of experience/period contracting/number/duration of previous contracts.

If your contract is worth over £75k pa, or you work in IT, typically, you'll be able to use your gross contract value, so daily rate x 5 x 46 (or 48) depending on lender chosen.

Plenty of experienced brokers can handle contractor cases.

funkey_monkey

My daily rate is approx £250: * 5 * 48 = £60,000.

However, I do work in IT.