What is an IT Contractor mortgage?
An IT contractor mortgage is a specialised home loan designed for self-employed individuals in the IT industry. This type of mortgage is secured against the value of your new home and is repaid over a period of time.
When applying for a mortgage, lenders assess your ability to make repayments based on factors such as your credit history and current financial situation. If you have a good credit score, a stable income, and can provide a sizable deposit, then obtaining a mortgage should be relatively easy.
However, as a contractor, you may not have the same financial stability as someone with a regular income. The fluctuating nature of contract work can make it challenging to meet lenders' eligibility criteria, as they may see IT contractors as higher risk borrowers.
With a growing number of self-employed individuals in the UK, many mortgage providers are now offering specialised mortgages for contractors. As a specialised mortgage broker, we understand the unique challenges faced by contractors and can help improve your chances of securing a mortgage.
When applying for a mortgage, lenders assess your ability to make repayments based on factors such as your credit history and current financial situation. If you have a good credit score, a stable income, and can provide a sizable deposit, then obtaining a mortgage should be relatively easy.
However, as a contractor, you may not have the same financial stability as someone with a regular income. The fluctuating nature of contract work can make it challenging to meet lenders' eligibility criteria, as they may see IT contractors as higher risk borrowers.
With a growing number of self-employed individuals in the UK, many mortgage providers are now offering specialised mortgages for contractors. As a specialised mortgage broker, we understand the unique challenges faced by contractors and can help improve your chances of securing a mortgage.
How do I get an IT Contractor mortgage?
Securing a mortgage as an IT contractor may pose some challenges compared to those in permanent positions. However, by providing solid evidence of your financial stability, you can streamline the process. Here are some tips to improve your chances:
- Compile all necessary documentation to demonstrate your financial stability, including contracts, bank statements, tax returns, and invoices.
- Prior to applying for a loan, work on improving your credit score. A higher score enhances your chances of approval. Focus on paying off debts, making timely payments, and reducing expenses leading up to your mortgage application.
- Save up for a larger down payment. A substantial initial payment can result in better interest rates on your mortgage, saving you money in the long run. Strive to secure the highest deposit possible before committing to a mortgage.
- If purchasing with a partner, consider a joint mortgage. This option is advantageous if your partner is in permanent employment, as it portrays you both as a dependable and stable couple. Alternatively, having a guarantor can help reduce risk for the lender.
- Seek assistance from a broker like Shaw-Smyth, who specialises in contractor mortgages. Our expertise in contract work can help you find competitive rates, ultimately saving you time and money throughout the mortgage process.
