Mortgages For Contractors And Freelancers
Fox Davidson secure finance for contractors from all types of industries including professional sports persons, IT contractors and clients working outside of the UK.
Self-employed contractor mortgages
There are a growing number of banks and building societies that will lend to self-employed contract workers or freelance workers. Generally, mortgage lenders will ask to see two years accounts although some lenders will lend where you can only show one years accounts.
Fox Davidson regularly secure finance for self-employed contract workers who have just left employment in a similar role. The specialist contract worker lenders that we work with will assess each case on its merits and where there is a clear history of work within a particular field especially a highly skilled or professional field of work then the better chance we have of securing lending with as little 1 years accounts.
Self-Employed Contract Worker Case Study:
Fox davidson were approached by an accountant that had set up his business as a Ltd company 14 months previously and was working on a 6 month contract which had been renewed for the 3rd time. As the client was a 100% shareholder in the Ltd company they are treated by mortgage lenders as self-employed and therefore the majority of banks would not lend as they require the usual 2 or 3 years accounts.
The client had been an accountant working on an employed basis for over 15 years previously and so we were able to easily demonstrate a good career history as a professional. Fox Davidson secured 90% lending for the client on an offset basis allowing the client to offset their tax savings against the mortgage balance.
Employed Contractor Mortgages
Contract workers that are employed will need to demonstrate a history of contracts for most lenders to be able to consider lending. We are able to use minimal history of contracting and can also use your day rate to calculate the amount you can borrow.
Fox Davidson is able to secure up to 95% loan to value for contract workers at high street rates.
Employed contractor mortgage case study:
A customer approached Fox Davidson unable to secure finance from his bank. He was employed as an IT programmer by a major UK employer for 5 years. He left permanent employment to work for a new company on a fixed term contract basis on a considerably higher day rate. Only 2 months into a 12-month contract Fox Davidson were able to secure an 85% loan to value mortgage for him.
Zero hour contract mortgages
As there is no contract in place whatsoever here the key to securing a mortgage for someone one a zero hours contract is work history. typically a mortgage lender will consider lending to someone on a zero hours contract if they are able to prove their income via payslips and P60’s usually covering at least a 2 year period. The actual decision to lend will depend on other factors too such as loan to value and credit score.
Zero Hour Contract Case Study. We secured a mortgage for a client that was on a zero hour contract. They worked as a journalist for a national newspaper. The income was regular although varied each month. Fox Davidson was able to have the lender use an average of the last 3 months income backed up by 2 P60’s to show a history of working.
Buy to let mortgages for contract workers
As with residential mortgages for contract workers, Fox Davidson are also able to secure Buy to Let mortgages for contract workers. The main concern of a buy to let lender will be the property and the rent it can achieve. In addition, lenders will look at your main income source and some lenders will not lend if you are not on a permanent contract. As a whole of the market mortgage broker we work with high street banks, building societies and broker only lenders to secure buy to let mortgages for contractors whatever their situation.
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.