A Brief Overview of IT Contractor Mortgages and How to Secure One
Everyone dreams of owning a property. For the wealthy few, it is easy to achieve. For many individuals, however, financing this dream can be quite a challenge. Despite the improving economy around the world, lots of people are still struggling with their finances. There’s also cases where specific job titles prevent the approval of a loan. This is particularly true for freelancers or contractors such as those in the field of information technology. It’s not uncommon to hear of professionals who deal with constant rejection when trying to get a mortgage plan. If you’re one of the thousands struggling with such a dilemma, you need to apply for a specialised IT contractor mortgage.
IT contractor mortgages – why are they different from the rest?
Freelancers and professionals frequently have a problem securing loans from high street banks and lenders. It is a reality throughout the United Kingdom. The majority of these organisations do not fully understand the very idea of freelancing. They have a bias towards permanent workers with regular salaries.
Despite your rather high income, many financial institutions will baseline their mortgage plans in accordance with a fixed salary. A normal lending policy will reflect a low salary and high dividends even after you file for the IR35. The problem is that regardless of the IR35, lending companies are aware of the short-term nature of contractual professionals. Their hesitance to grant plans is a result of their fear that you might not get an extension or new contract altogether. If you do chance upon an institution that accommodates your income, chances are they will not deliver with regards to interest rates and flexibility.
Additionally, most banks and lenders will make you apply for a self-certified mortgage. It is something you need to avoid as it’s more expensive. Although it is tough, never lose hope. Many lenders are realising the growing market for IT contractor mortgages. The institutions are beginning to provide good deals and are adjusting their criterion to give financial solutions to contractual professionals.
What to seek in an IT contractor mortgage provider
Find providers who know what it’s like for freelancers and contractors. A comprehensive search can lead to an organisation with former service providers from the IT field. Experts who have first-hand experience will give you invaluable advice. They’ll make the process easier for you. Moreover, look for providers fully qualified and regulated by the Financial Services Authority (FSA).
Keeping up with mortgage payments will be hard regardless of your sizeable income. That’s why contract flexibility should weigh heavily in the plan you seek. Maximum flexibility will lessen the burden of your monthly payments. This is particularly valid if you’re in between contractual jobs where income may be unbalanced from time to time.
Another tip will be to shop around before you apply for a loan. Never submit an application until you are confident in the company and are pleased with their offer. Remember, each application for a mortgage is going to reflect on your name regardless of its success or failure. Most importantly, look for contractor-focused organisations. Businesses that cater specifically to professionals just like you will know which options are best. They’ll present you with an IT contractor mortgage you are able to keep up with or refer you to qualified partner firms if they can’t do it themselves.
Alexandra Burns recently received an it contractor mortgage with the help of a broker specialising in it contractor mortgages.
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