IT Contractor Mortgages

As a contractor, looking for a mortgage can be a fairly steep mountain to climb. When you actually begin analyzing the situation and figuring out whether you should go ahead and make the decision, you are faced with a lot of ambiguities and a lot of possible issues. So, it’s absolutely normal if you feel frustrated during your quest for viable contractor mortgage.

There are some contractor friendly firms while there are others that don’t welcome limited company contractors. When you talk about the mortgage option with your friends and professional colleagues, you get to hear mixed opinions and different anecdotes from people. Let’s first answer some of the questions that arise in the minds of contractors while they are faced with this gruesome challenge and then move on to the actual mortgage finding part:

Suggestions for a Successful Mortgage Application

Now let’s look at some of the suggestions that can actually make your application process smoother and can get you an easy mortgage deal:

Make the use of a mortgage specialist:

Most people like to do their work their own way and by using their own resources and links but it’s recommended that you should hire a mortgage specialist to provide you mortgage help, because this is an intricate process that when dealt with care, might end up getting you the best deal you will live to have. You might be able to go in the market yourself and land a deal single handedly but the majority of the banking staff and the call center agents aren’t exactly aware of the contracting world so you might end up failing to interact with them properly. When they ask for formal documents and details like employer details, proof of time employed etc. you might not be able to stay on the same page for long.

A mortgage broker in this regard can help in many ways because they have an increased experience of working with other contractors. Once again, CMME or Contractors Mortgages Made Easy can serve your purpose in the best way as they are a credible organization that has been recognized by many around the world. There are many pros of choosing an organization like CMME:

1.You won’t have to make hours of calls to different people trying to get your application processed.

2.You won’t have to wander across the high street trying to find a lender that knows what they are doing.

3.You won’t have to care about the legal formalities.

4.The deal that you will get will be one of a kind as CMME studies your contract extensively before suggesting you a lender from the high street that will cater to your demands and needs with aplomb.

5.You won’t have to provide references after collecting them from various sources or go through the hassle that inexperienced lenders force you to.

You will not have to go through inexperienced staff and call center agents that don’t know the real picture and can only rely on the information fed to them by technical people. Instead you will communicate directly with trained lenders that will know exactly what you want, exactly what can be done and your mortgage application will be dealt with easily.

A deposit of at least 10 percent:

There is no such thing as a “100 percent” mortgage; well not anymore at least. Since the credit crunch, the best we can get is a 90 percent mortgage. So, you will get the best rates only if you have been able to save a deposit. Anything between 10 percent and 25 percent should be aimed at. As already mentioned, if you don’t have any existing property which is currently worth more than what you initially paid for it, then still you can find mortgage deals out there but with increased rates. The thing is that the more risk you take on by putting your equity in the property, the lesser risk the lender is taking and hence they are going to be able to offer you rates that are lower and will require lesser repayments.

Your credit rating should shine as bright as a diamond:

Unless you are among the top 10 contractors of the country, you need to have an astonishingly handsome credit rating to be able to get a good mortgage deal. If you have a good income and your deposit is also huge, you might still end up getting your application rejected just because your credit rating gets labelled “not good enough”. Lenders are getting increasingly sophisticated and stricter at the moment because of the changing economic conditions and you should hence avoid giving them any excuses to decline. That being said, try to keep your credit rating as clean as you possibly can. There are many reasons why your rating can go down; things like failing to update your electric roll while moving your house or missing credit card payments can hamper your bid to getting a mortgage by many folds.

An up to date contract can also help you a lot:

Your contract’s copy needs to be up to date and signed when you actually apply for the mortgage. An obsolete contract will get rejected without any further processing. The entire length of the contract should be stated explicitly along with the contemporary contract rate. CMME also makes use of this information while making your mortgage application a lot more likely to get accepted. This will of course also relieve you of any stress of producing references and displaying three years’ worth of accounts.

Stay within your limits:

Lastly, while actually applying for a mortgage, you need to be realistic and absolutely certain that you will be able to afford making repayments for the specified period of time. The figure that the lender is offering you must be something that you can afford every month and if they end up suggesting an amount that you believe isn’t worth getting a mortgage on, then you should decline upfront to avoid any future problems. The key here is to stay sensible and be self-aware. Also it’s worth remembering that the interest rates might also go up and if you choose a variable rate of repayments then they can end up being less affordable for you as time progresses. So, while choosing a mortgage it’s absolutely necessary that you be as pragmatic and futuristic that you possibly can.

While the whole process of getting a contractor mortgage is not simple, there are some suggestions and venues that when used, can go a long way in making the process a less cumbersome one. When a lender rests their trust in you and you rest yours in theirs, make sure that there is no communication gap and that all the details have been put to paper to ensure any future discrepancies.

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