Understanding Contractor Mortgages

Contractor mortgages are basically mortgages that unlike standard mortgages are looked at on a case-by-case basis. This gives a contractor or freelancer a better advantage and opportunity to get an approval on a mortgage, at a reasonable rate. Many contractors have been discriminated by financial institutions based on their financial standing and the fact that they do not have a set income. However, with these mortgages specially catered to them they now can get a competitive mortgage to buy their dream home, like anyone else. There are certain things that play in the review of the application such as the duration of the existing contract, retained profits, contract rate, and the number of years the borrower is contracting. One thing to keep in mind is that these mortgages are not what most know as self-certified mortgages.

Many people are worried that maybe they cannot apply for a contractor mortgage for numerous reasons. But mortgages for contractors are for everyone. Anyone can take advantage of this great opportunity. There is no set criterion to apply for these mortgages, and to the surprise of a lot of people there are lots of mortgage products on the market. There are great deals for people with adverse credit ratings as well as first time buyers. Some people think that they need to have accounts collected for three years before they can apply for a mortgage for contractors, but that is not true. Anyone can apply for a mortgage for contractors at any time.

Another thing that many people think is that these mortgages are very expensive. Of course it depends on the mortgage broker or which IFA you speak to. The problem is many people confuse mortgages for contractor with self-certified mortgages, and most financial institutions and mortgage brokers will try and lead you in that direction, which of course is much more expensive. However, if you speak with a mortgage broker or financial institution that specializes in mortgages for contractors you will find that you will get competitive rates with any standard mortgage.

You can search for and find a lot of information on contractor mortgages anywhere online. Go into a popular search engine and type in mortgages for contractors and you will find a lot of information which will be able to help you further understand the process.

There are numerous companies that offer great information and services. You too can get that dream home and not worry about having an overly expensive mortgage. It is unfair how many mortgage brokers and financial institutions lead contractors to self-certified mortgages simply for their own gain. There is a better option available today and you too can take advantage of it.