Connect with us

Finance

How To Secure Mortgages For IT Contractors

Securing a mortgage can seem like an overwhelming process, especially if it’s for someone who is self employed or a contractor. Many feel like they will never get approved, which is why so many never apply.
While it can sometimes be a little more challenging to get a mortgage as a contractor, there are many options available that can make the entire process easy and worry-free.

Go Over The Budget Carefully

One of the most important things when looking at mortgages for IT contractors is that there will be a low or no risk of default or missed payments. The lower this risk, the easier it will be to get a mortgage in most cases.

To determine the risk, many first look at the overall budget for both work and personal expenses. Ideally there should be ample funds for all of the expenses, including the mortgage payment, as well as reasonable surplus for emergencies or savings.
If the margins are very tight, then it may be a better idea to either put more money down up front, or wait until business is better before trying to take on additional expenses.
Those how find that their budget easily allows for the additional expense can then take the next step and start the process of securing a mortgage in order to purchase their new home.

Gather Paperwork And Documents To Save Time

All reputable lenders will need at least a few types of documentation in order to grant IT contractor mortgages. At minimum they will need to see at least three months of bank statements showing recent earnings, and any recent contracts for work.
Three months of bank statements is sometimes sufficient for getting a mortgage, but keep in mind some lenders may require additional records. If this is the case, then tax records or additional bank statements may be necessary.
Recent contracts are a common requirement as they show proof of employment, and also show the rate of pay and duration. From these, it is possible to form an average expectation of income, making it easier to calculate how much can be borrowed for the mortgage.
One thing to keep in mind with this is that the calculations are typically based on an estimation of expected income. Actual income may be higher or lower than this amount, which is why contractors should always verify that their budget can be adjusted higher or lower as needed.
If the income is found to not be sufficient, there are still ways to work around it. In most cases, it will be advised to either put a larger amount down for the home, or wait until the income has increased.

Consult A Professional For Help

The best way to secure any self employed mortgage is to seek out a professional who is experienced with the application process. These professionals often know the best way to prepare the mortgage application in a way that will get the desired outcome.
Professionals can also be a wonderful resource for those who may have questions about their situation, such as how much they need to put down, how much the payments will be, or whether they can borrow a slightly higher amount.
Keeping these things in mind often makes securing mortgages for IT contractors a very easy and simple process. The important thing with it is to be patient, and to go over all of the information carefully as it is a big commitment and responsibility.
John Yerou is MD of Freelancer Financials which specialises in Contractor Mortgages.

Continue Reading

Recent Posts

Markets & Finance1 month ago

The Power of Market Research in Shaping Marketing Strategies

Introduction Market research companies are essential players in shaping the success of any business. In today’s highly competitive and data-driven...

man on construction job man on construction job
Business3 months ago

What to Consider Before Starting a Construction Project

If you are starting your own construction project, there are a few things that you will need to consider. It...

high rise building high rise building
Business3 months ago

The Secret Details That Make Luxury Buildings Stand Out

When it comes to property, luxury isn’t all about the size of the building. Location doesn’t even qualify a property...

yellow skip yellow skip
Home Improvement3 months ago

Essential Factors To Consider When Hiring Skip Services In Cranbourne

Have you ever started a home renovation only to realise your regular bins can’t handle the waste? Or worried about...

Business4 months ago

Boring Businesses That Won’t Be Going Out Of Fashion Anytime Soon

As the AI wave sweeps the world, more and more people are worried about the future of the industry in...

nursery nursery
Home Improvement5 months ago

Creating a Calm and Inspiring Nursery: A Guide to Nurturing Spaces

Designing a nursery that supports your baby’s growth and development is more important than simply choosing adorable bedding and furnishings....

Home Improvement5 months ago

Demystifying the Installation Process of a Rheem Hot Water System: A Complete Guide

  Have you ever thought about what magical process makes your icy cold water instantly hot? with the mere flick...

Business6 months ago

From Startup to Global Force: The Meteoric Rise of Digigiri Enterprises

In the bustling digital landscape of 2021, a new star was born: Digigiri Enterprises. Founded in December of that year,...

General6 months ago

Invigorating Your Wheels: Mastering The Art Of Car Painting Techniques

Have you ever marvelled at the glossy, vibrant colours glossing over cars as they zip past you on a sunny...

Home Improvement6 months ago

The Ultimate Guide: Preparing For Packers And Movers

Moving homes is a significant event in everyone’s life that can evoke a myriad of emotions. Excitement, optimism, sadness, and...

Science6 months ago

The Impact Of Polycarbonate On Eco-Friendly Production: An Exploration Of Sustainability In Design

Have you ever wondered about the role of modern materials in shifting our society toward more sustainable and ecological ways...

Law7 months ago

Understanding the Eligibility Criteria for Indefinite Leave to Remain

A migrant to the UK has the right to make a permanent move to the country without any immigration restrictions...

Home Improvement9 months ago

Mastering The Maintenance: Breaking Down The Basics Of Your Ducted Heating And Cooling System

Welcome, fellow home enthusiasts! Ever find yourself lost in the labyrinth of your ducted heating and cooling system? Have you...

Business9 months ago

The Invisible Hands: Unveiling How Food Distributors Influence the Quality of Our Foods

Ever found yourself wondering why the tomatoes in your salad taste particularly fresh or why your preferred brand of coffee...

Marketing9 months ago

Webflow CMS: A Comprehensive Guide

Webflow is a powerful tool that allows you to create and manage dynamic websites without needing to code. It’s a...

Categories

Archives

Trending