At We can get you a mortgage, we can help you. If you’re struggling to get a mortgage, we can help provide you with a decision that is right for you.
Not all lenders work in the same way. There are lenders who realise contractors can be safe borrowers and rather than analysing your accounts or requesting details about your salary, net profit or dividends, they instead look at the value of your contract and your record of employment.
With our help, you can get a mortgage.
Why did contractor mortgages come about?
Sometimes also known as Construction Industry Scheme (CIS) or building contractor mortgages, contractor mortgages were introduced after many lenders realised their systems for assessing a mortgage application were excluding a large number of contractors from obtaining a mortgage.
What is a contractor mortgage?
In terms of pricing and rates of interest, a contractor mortgage is no different to any other type of mortgage. However, the key difference between a contractor mortgage and any other mortgage is the system in which the lender utilises to assess the mortgage application. Rather than using a standard system that analyses three years of accounts, the lender will use a system that features bespoke underwriting criteria specifically for contractors.
To apply for a contractor mortgage you will need to present your CIS slips and invoices where tax is deducted at source for the last 3 months and also your corresponding bank statements for the same time period.
Who provides mortgages for contractors?
Not all lenders offer contractor mortgages, but we can contact the lenders who do on your behalf.
What interest rate will I be paying?
The interest rates available for contractor mortgages are no different to the interest rates that are available for any other mortgage. The only difference is only specific lenders offer contractor mortgages.
Prior to contractor mortgages being launched, contractors were reliant on self-certified mortgages, which were often paid back at a higher rate, but are now no longer available.
How will my application for a contractor mortgage be assessed?
When applying for a contractor mortgage, the lender will assess your application on the basis of your salary plus dividends and/or net.
Will I qualify for a contractor mortgage?
Unlike many other types of mortgage, lenders assess applications for contractor mortgages on an individual basis rather than using a systematic approach. However, there is usually a broad criteria which you will need to meet. Usually you will need to show that:
- You have a current contract in place and that you have at least 12 months in the same line of work.
- You have continuity in the type of work you are carrying out.
- You have monthly evidence of CIS slips and invoices that prove your income
If you would like some impartial advice about CIS/building contractor mortgages, please get in touch on 0207 993 2709, or just click the “GET A QUOTE” button on the side and fill out our form.