Contractors Mortgage
For contractors, we have a team of specialist advisors who deal frequently with applicants in the following circumstances:
- Day rate contractors
- Contractors with Limited Companies for tax purposes
- CIS Workers who pay 20% tax weekly or Monthly
- Just moved from employed to contracting
If you are a contractor in one of these categories, enquire now to be put in contact with one of our specialist team
A contractor mortgage is only different from a mainstream mortgage in terms of how a lender will assess your eligibility for a loan. The underwriter will consider more specialist criteria in order to assess your needs on an individual basis.
In many industries contract work is becoming more common place and many of these are taken in a self-employed role with the “employee” being paid a daily rate and being left responsible for their tax and national insurance payments. The most common industries where this applies are IT, Telecoms, engineering and construction.
In these cases, many lenders will use their criteria for a self-employed applicant or require a long track record of the contract with proof that this is to continue. This doesn’t suit everyone; many people change from employed roles to contracting or if they are an experienced contractor they may regularly switch to other companies as their expertise is in demand. For those in the position of being a self-employed contractor for many years an accountant may well have advised them on ways to be more tax efficient and therefore show less income than the contract they are on.
Construction workers can often find that they are contracted under the CIS scheme and receive a weekly or monthly income from their employer but be responsible for a tax return at the end of each year, many lenders will treat them as self-employed.
As a mortgage is secured against your home/property it may be repossessed if you do not keep up the repayments.