Freelancers Mortgage Deal
There has been a freelancers mortgage deal rush in the most recent months of this year.
Freelancer are rushing to tie in fixed rate mortgage deals before the expected interest rate rise in May.
A further two interest rate rises are expected by the markets next year – and maybe sooner.
It all depends on inflation and how the economy is picking up.
Easier to get Freelancers Mortgage Deal
Getting a mortgage is much easier for contractors these days.
Ten years or so ago if a freelancer walked into a building society or high street bank and asked for a mortgage, he or she would get a shock.
The manager would ask him or her for three years worth of accounts.
They would also base their mortgage offer on their Director’s salary.
As all freelancers using limited companies know, freelancers like to keep this as low as possible.
They like to take as much of their income as they can in dividends.
This saves them more money.
Specialist Freelancer Mortgage Broker
However, those days have gone – if you use a specialist freelancer mortgage broker.
Nowadays all that you need as proof of earnings is not three years worth of accounts but just your contract.
Also, a freelancer’s mortgage offer is based on his or her daily rate annualized.
Mortgage Offer Calculation
To find out what that is multiply your weekly earnings by 48.
Then multiply that again by 4 or 5 to find out the mortgage offer you could get as a freelancer.
So, someone earning £400 a day would earn £2,000 a week.
Multiplying by 48 would make £96,000 a year.
Multiply that again by 5 and a freelancer’s mortgage offer would work out at up to £480,000.
This would mean that this freelancer could afford a house costing more than half a million pounds.
To find out more information about this, or to take advantage of a freelancers mortgage deal, just fill in the form below and a specialist contractor mortgage broker will be in touch.
IT Contractor do not give mortgage advice and act as introducer to CMME. CMME is a trading name of CMME Mortgages and Protection Limited. Authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 04886692. Registered Office: Albany House, 5 Omega Park, Alton, Hampshire, GU34 2QE. Please be aware that Commercial Mortgages, Overseas Mortgages and some Buy To Let Mortgages are not regulated by the Financial Conduct Authority. Calls may be recorded for training and security purposes and to improve the quality of our services.