It is important when a contractor is looking for a mortgage that they use a specialist contractor mortgages broker. If you just walked into a high street bank you would be told that you would need to produce three years worth of accounts.
So, your offer would be based on 3 or 4 times your Director’s salary. As we all know, contractors like to keep that to a minimum and take their money in dividends. Furthermore, you would have got a better offer if you were still a permanent worker.
A specialist contractor mortgages broker will use your daily rate to get you up to 5 times your daily rate annualised. Therefore, you don’t have to have any accounts. Indeed they can get you an offer within hours of the very first day of your very first contract.
They work out your annual salary as your daily rate x 5 times 48 in terms of the offer you get.
Based on Daily Rate
So, let’s say that you are earning £400 a day. Your weekly rate would be £2,000. So, your annual salary, for specialist contractor mortgage purposes is £96,000. Your mortgage offer would be up to £480,000 – and you can now get 95% mortgages. This means that on your very first day into a contract you could be getting a new house worth more than half-a-million quid. So, within 4 to 6 weeks of starting contracting you could be opening the front door to your new house. One guy managed it in just 2 weeks.
Read on to find out more:-
Why use a specialist broker
This is our best contractor mortgage advice.
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