How much can I borrow?
Typically, around 4.5 to 5 times your annualised contract value. If there is a second applicant that also has income, this can be added to the annualised contract figure before applying the income multiple. There is also an affordability assessment that takes account of any other financial commitments, such as loans, credit cards.
I have just started contracting, can I still get a mortgage based on my contract rate?
Yes. Some lenders require 12 months contracting history, others just a track record of working in your industry. You can still apply for a mortgage on your contract rate if you have recently swapped PAYE to contracting, but have industry experience.
Will I be charged a higher interest rate or fee because I want a mortgage based on my contract rate?
No. The lenders are High Street lenders with high street rates, you get the same rates as anyone else from the lenders standard mortgage range.
Do I need a bigger deposit to get a mortgage on my contract rate?
No. As with the interest rate applied to the loan applications are processed on the lenders standard terms and that includes deposit levels.
I’ve recently switched to an Umbrella / Payroll payment route, due to IR35, is this a problem?
No. Most contractor lenders are interested in your underlying contract value, not which route you take for tax purposes.
Can I get an Interest Only Contractor mortgage?
Yes, Although these are restricted to lower risk applications. We can tell you whether you meet the profile for having some, or all of your mortgage on an Interest Only basis.
My Limited Company shares are split between me and my spouse, does this cause a problem?
As the mortgage is based on the contract rate it’s not a problem.
What is the process and what do I do next?
First step is to get in touch. We can gather some basic details and tell you whether you requirements are achievable.
