Dolan Accountancy’s contractor mortgage partner is St James’ Place, who specialise in taking the difficulty out of securing a mortgage, for contract workers.
St James’ Place have partnerships with a large number of High Street lenders, enabling them to secure a mortgage without any additional difficulties. They have answered some common questions below, so that you know exactly what to expect.
I’ve heard lenders quote higher interest rates for contractors – is this true?
This is one of the most common misconceptions we come across and it’s just that – a misconception. Interest rates are generally the same as for permanent staff. In some cases, interest rates can even be lower than for permanent employees! Typically, this applies when either your credit rating is very strong, or when you have a large deposit saved – this is common when contracting long-term, as any professional freelancer knows the need to keep money in reserve.
As a contractor, am I classed as a ‘high-risk’ individual in terms of a mortgage?
Absolutely not. The lenders we partner with will base your risk status on your credit rating and your deposit available. If your credit rating is fine, you should be able to borrow around four times your current contract rate. The same factors that affect a permanent employee – CCJs, defaulted payments or outstanding credit card bills – will weigh against you too, but as specialists in the marketplace,St James’ Place use our expertise to help you speak to the right people.