Who Can Get A Contractor Mortgage?
February 17th, 2012 -- Posted in Finance | Comments OffContractor mortgages are specialist mortgage products designed to provide mortgage solutions to contractors and freelancers. However, they are not limited to these two categories of workers. Anyone with a source of income can get a contractor mortgage. The only conditions for one to qualify for the mortgage are:
1. Have a proven source of income
2. Provide details of current contracts or income level if a full time employee
3. Show profit retention rates
4. State/show the length of time you have been working
5. Provide your contract rate if a freelancer or contractor. For full time employees, the income level/pay slip is evaluated.
These factors enable the lender or mortgage broker (if you are using one) to carry out underwriting to determine your overall income, what loan amount you can get and what payment amounts are most suitable for you.
Full time employees, business people, contractors and freelancers with poor credit ratings can also apply for the contractor mortgage. Lending companies dealing in mortgages for contractors do not rely on credit reports to determine whether an applicant qualifies for a mortgage or not. They evaluate each application individually, and approval is based solely on the applicant’s ability to repay the loan as deduced from their earning potential.
You can still apply for a contractor mortgage even if your credit rating is good. There are many reasons why individuals may not qualify for mainstream mortgages. Such people can apply for contractor mortgages instead, where the chances of approval are high. Feel free to apply for the loan if:
- You have just started your own business and have made tangible profits during the time you have been in operation
- You have a short employment history and don’t qualify for a mainstream mortgage
- You have irregular income
- You want a remortgage