subject: Contractor Mortgages - You Have a Choice Now! [print this page] Contractor Mortgages - You Have a Choice Now!
There is a new type of mortgage available now which offers help to contractors and freelance workers. Contractor mortgages are designed especially to cater entirely for people who are self employed and are unable to prove their income due to its irregularity. It offers an opportunity to people who have their own business to be able to either improve their own home or their business.
This is important because in the past the mortgages for contractors were basically the same as any other, but with much higher percentages, fees, and paperwork. It had almost become impossible for anyone whose income was generated from personal business rather than from full time employment in a company to get a loan of this type. The fees and interest rates offered to contractors and freelance workers were outrageous, and many banks didn't see the benefits nor did they take into account the higher income that many people who work for themselves actually have.
Today, however, contractor mortgages are finally available. There are certain banks that specifically cater only to the self employed and casual workers. Their sole interest is to assist them by only offering them a better rate of interest then had previously existed with lower fees. You can go to any major bank institution or a mortgage broker and speak with them about your options.
You can also find companies on the internet who specialise in this who will be more than happy to provide you with a quotation. As with any other loan, or in general anything you purchase or commit to, it's important to review all of your options and find the most appropriate situation to suit you. Make sure that you are not going to be paying extra fees, very high interest rates, or if in any other way the mortgage they are offering isn't competitive to that which is being offered to the employed then keep looking. You will need to do some basic research to get a better understanding of what the interest rates are at the time of your request and what is on offer but it will be worth it in the long run.
Settling for the first available mortgage offer may be a mistake. You want to make sure that you get the best deal by comparing the market and ensuring that what you are being offered is ideal for your needs. In most cases, once they draw up an offer for you they give you a certain amount of time to answer back, this can be anywhere from 24 hours up to a week, it all depends on the financial institution. One thing that you want to be certain of is that you find the appropriate bank or mortgage broker that will offer mortgages for contractors, and not modified regular mortgages which have much higher fees and interest rates. Do your research and choose wisely.
