subject: Contractor Mortgages Are Best If You Are Self-Employed And Looking To Take A Mortgage [print this page] Contractor Mortgages Are Best If You Are Self-Employed And Looking To Take A Mortgage
Many contractors and anyone else that works freelance or is self-employed faces problems with getting a mortgage which has a reasonable and competitive rate as well as low fees. Since when they work and receive money contactors have a hard time showing the money that they make and guarantee that they will continue to make them, making them considered as a repayment risk. This means that they have a very hard time getting a reasonable mortgage, and end up paying far more in fees. Contractor mortgages are something new that has recently grown in popularity, and a handful of mortgage lenders now cater specifically to the freelance sector and contractors.
Often a freelance contractor is faced with contractor mortgages offered by standard lenders that have very high charges as well as high interest rates. It is difficult for a contractor or anyone that is self employed to find a mortgage suitable for their needs and at a with acceptable standards. Many mortgage lenders have a hard time offering a mortgage to anyone working freelance or is self-employed because they worry that they may not have the work available at all times and may end up not paying off their mortgage. However, they don't consider that most freelance workers, especially contractors, actually make more money than many people working at a fixed wage.
Contract mortgages are now offered by special mortgage lenders that specifically make it their job to work with freelance and self-employed workers in order to offer them the best mortgage rates available. They see the benefit of being a contractor and self-employed, and understand that if you run a successful business that it's to their benefit to offer you a mortgage. Make sure that before you finalize your search you review the mortgage offer well and that you are sure that you are happy with the standards.
Some things to look out for are that the mortgage is not self-certified mortgage, which means that you will get high charges and interest rates. Check the punitive charges and review the broker fees, there should be very little if not none. A sign that you have found a good mortgage for contractors is that there is a low deposit, annualized contract rates, and that the rates are competitive to the standard national rates, and not higher.
Overall, if you are a contractor or other freelance worker you may have had a hard time finding a non-self-certification mortgage, however, today there are mortgages for contractors especially catered to anyone that's self employed and looking to refinance or take a mortgage. Be sure that you research properly for contract mortgages and speak to your mortgage lender to make sure that you get the best deal possible. It's important that there are low or no broker's fees as well as that the rates that they offer you are competitive to the standard national rates. Most importantly, whatever you do, do not get stuck with a self-certification mortgage, which will end up costing you too much with very high charges and interest charges.
