If you are a contractor on a daily rate there are many mortgage options to consider. Our guide will help you with the options available

THE ULTIMATE GUIDE TO THE BEST MORTGAGE DEALS FOR CONTRACTORS
As specialist mortgage brokers for contractors, our dedicated team is dealing with the best mortgage lenders for contractors on a daily basis. We understand the issues, questions, and criteria lenders rely on to approve a contractor mortgage application. This guide will hopefully go some way in clarifying the details you need to understand to ensure a successful application.

Contracting work is common in several industries. An independent contractor works for companies or businesses as needed, under the terms of an agreed contract.

Mortgage lenders generally classify Contractors under one of the following descriptions and treat them differently in regard to how they view their income and what proof of income they will accept in their mortgage underwriting process:

Daily Rate Contractor – Daily rate in excess of £220 per day
Daily Rate Contractor – Daily rate less than £220 per day
Fixed Term Contractor
CIS Contractor
Once a contract is nearing its end date it one tends to start discussing new contract terms with the existing company, or a new one, to ensure there is little or no break between income sources.

For mortgage purposes, there needs to be no more than a week gap between a contract, and no more than 8 weeks total in a year otherwise this makes obtaining a mortgage that much more difficult. Your income must be in sterling, subject to UK tax and your experience in the industry needs to be in the UK.

Contracting work can make applying for a home loan quite challenging. This article tells you everything you need to know on this topic.