Are you a contractor dreaming of owning your own home? At MG Mortgages, we understand the unique challenges contractors face when it comes to securing a mortgage. Whether you're a freelancer, self-employed professional, or run your own contracting business, we are here to guide you through the process and help you achieve your homeownership goals.
Contractors often face hurdles when trying to secure a mortgage. Traditional lenders may be hesitant due to irregular income patterns or the perception of job instability. At MG Mortgages, we recognise that contractors bring valuable skills and expertise to the workforce, and we believe homeownership should be accessible to everyone, regardless of employment structure. We understand the intricacies of your financial situation and work closely with you to find mortgage products that align with your unique needs.
Contractor-Friendly Lenders: We have cultivated relationships with lenders who specialise in working with contractors. These lenders recognise the nuances of contract work, enabling us to connect you with financial institutions that appreciate the unique nature of your income.
Flexible Affordability Assessments: Contractors often have variable income, making standard affordability assessments challenging. Our team at MG Mortgages works with lenders who take a more flexible approach, considering your contract rate, day rate, and overall financial circumstances to determine affordability.
Specialised Mortgage Products: We understand that one size does not fit all when it comes to mortgages for contractors. MG Mortgages collaborates with lenders offering specialised products tailored to the needs of contractors, including fixed-rate and variable-rate mortgages.
Proof of Income Options: Contractors may not have the typical proof of income, such as payslips. Our advisors assist you in navigating this challenge, exploring options like using contract income as proof of earnings or considering your average annual income.
IR35 Considerations: For contractors operating through a personal service company (PSC), the IR35 legislation is a crucial factor. We guide you on how lenders assess your IR35 status and help you understand its implications on mortgage eligibility.
Future Earnings Considerations: Contractors often have the potential for increased future earnings. We work with lenders who take your skills, experience, and future earning prospects into account, providing you with mortgage options that align with your long-term financial goals.
Don’t just take our word for it
Expert Guidance: Our team consists of seasoned mortgage professionals who are well-versed in the complexities of contractor mortgages. We stay updated on the latest industry trends and lending criteria to provide you with the most relevant and accurate advice.
Tailored Solutions: We don’t believe in one-size-fits-all solutions. At MG Mortgages, we take the time to understand your specific circumstances and financial goals. This allows us to tailor mortgage solutions that suit your unique situation.
Access to a Network of Lenders: As an established mortgage broker, we have cultivated strong relationships with a wide network of lenders. This gives us the flexibility to explore a variety of mortgage options, increasing the likelihood of finding the best terms and rates for contractors.
Streamlined Process: We know your time is valuable. Our goal is to streamline the mortgage application process, making it efficient and hassle-free. From initial consultation to the final approval, we guide you through each step, ensuring a smooth experience.
When contractors apply for a mortgage, lenders assess their income through a nuanced process, recognising the variable nature of contract-based earnings. Unlike traditional employed individuals with a steady salary, contractors often receive income based on project timelines and contractual agreements. Lenders typically consider factors such as the length and stability of contracts, the contractor’s track record, and the consistency of income over a specified period. They may also evaluate the contractor’s day rate and contract renewal prospects. Additionally, some lenders are more flexible and consider gross contract income, understanding that contractors have unique financial circumstances.
Understanding your IR35 status is vital when applying for a mortgage as a contractor. Lenders often assess income stability, and if your contracting falls within IR35, it means your income undergoes tax and National Insurance deductions at source, resembling traditional employment. This can positively impact lenders’ perception of your income reliability. Additionally, contract terms, length, and IR35 determinations play a role in affordability assessments.
Future earnings play a significant role in a contractor’s mortgage application, influencing how lenders assess their financial capacity. Lenders take into account a contractor’s skills, experience, and the potential for increased earnings when determining mortgage eligibility. A contractor with a strong professional track record and the prospect of higher future income is often viewed favourably. This consideration may lead to lenders offering more flexible terms and larger loan amounts. The contractor’s ability to showcase not just current income but also the potential for sustained financial growth can positively impact the lender’s confidence in their ability to meet mortgage obligations.
If you have a mortgage or insurance related question, please don’t hesitate to get in touch. Simply complete the contact form or send us a WhatsApp.
At MG Mortgages, we specialise in helping contractors in Stockport navigate the complexities of securing a mortgage. Whether you’re a freelancer, self-employed, or run your own contracting business, we understand the unique challenges you face, such as irregular income and contract-based employment. Our expert team works with contractor-friendly lenders to offer tailored mortgage solutions, flexible affordability assessments, and access to specialised products that suit your needs. From handling proof of income to addressing IR35 considerations, we guide you through every step of the process, ensuring a smooth journey to homeownership.
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