There are numerous advantages to being a contractor, choosing your own hours, higher rates of pay and being your own boss, but a major disadvantage is securing mortgage funding.
Below is a list of tips to help you:
1. Use a specialist mortgage broker
The reality is that most lenders do not understand the contracting market and as a result are reluctant to lend to those without a guaranteed income. Many lenders can make it possible for individuals to secure a mortgage based on a multiple of contract rate.
2. Keep your credit rating clean
Since the announcement of the new mortgage rules last year, lenders have become increasingly stricter and are looking for reasons not to lend. That is why it is important to keep your credit rating in a good condition.
3. Save as much deposit as possible
To access the best rates you should be looking to save between 10 and 25%. If you aren’t able to save this amount, there are mortgage options out there but you will be put on a much higher rate.
4. Collect all the necessary paperwork
You may be required to provide an up to date CV, to demonstrate your skills and experience, and a copy of your current contract, to prove your income. Both these documents are usually used to support your application.
At Gorilla Accounting we have structured our contractor specialist service offering around both our own experience and feedback from contractors themselves. We have devised a superior accounting product sure to enhance the accounting experience of any contemporary contractor.
To join Gorilla Accounting today, and take advantage of our single, simple accounting package call 01204 357 105 and one of our friendly team will be more than happy to assist.
