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One of the (happy) consequences of being a contractor is earning more money than you did as a permie. When you retain more of that income too, home ownership possibilities appear endless. It seems feasible, then, that the first investment many contractors consider is moving to a bigger home.
It makes financial sense, of course. But moving home can also have logistical benefits. For one, property holds its value better than most investments. But it’s the added quality of life that more room offers that’s the draw.
To be able to shut your door on ‘the office’ instead of you sprawling your business over the sofa and your spouse’s legs? Priceless. And then there’s the perceived higher social status of having four bedrooms instead of two. For sure, moving up the property ladder is tempting.
Moving home needn’t be as complex as getting your first mortgage
But what puts many professionals off the idea of moving home is “having to go through all that again”. Having had a bumpy ride to get a mortgage in the first place, the last thing they need is all that stress on top of running a burgeoning business.
We hear you. We know first hand the struggles that independent professionals face when buying a home.
The good news is, once you get onto the property ladder, moving can be a whole lot easier. In your corner, you have a mortgage repayment history. You’ve also got a lender who’s approved your application in the past, thus knows that history.
So it’s all plain sailing from there, right?
Well, not always.
If it ain’t broke, don’t fix it
The chances are you used a specialist mortgage broker to get you that first mortgage. The reason they succeeded where you failed was because they knew how to highlight your true affordability.
What’s more, the underwriter your broker used would also have had a working knowledge of contracting. It’s not unthinkable, but you seldom find in-branch advisors who understand limited company accounts.
If you presented your accounts to your current lender and asked for a bigger loan, what do you think they would they say? They’d take one look at your take home pay and wonder how you afford your existing mortgage, let alone a bigger one.
This is going to be what frustrates the heck out of you. You know that the home mover market is competitive. Because, in general, lenders perceive people wanting to move home as lower risk. As well as repayment history, the borrower often has equity in their home. And, more often than not, home movers are looking to up-size.
That means more money in the long term for the lender, plus less risk with a lower loan to value mortgage. The bigger deposit a borrower has to fund their new property purchase, the lower the risk for the lender. The lower the risk, the lower the interest rate. Simple.
Everyone’s a winner…
…except you. Because your lender won’t listen. Or they can’t see your affordability, even though it’s staring them in the face.
You see these fantastic rates, but they remain unattainable. So exactly how do contractors move up the property ladder with a home mover mortgage?
There’s a list of key criteria that we’ve whittled from dealing with contractors looking to move home. As such, we’ve tailored our service to include:
- an agreement in principle within 24 hours;
- mortgages accessible with only 5% deposit;
- the bigger the deposit, the lower the interest rate;
- mortgage offers based on your contact rate;
- discounted set up fees, some with fees waived entirely;
- updates on your application progress, through to completion;
- the ability to switch mortgages mid-contract.
Why you should use specialist mortgage brokers
Despite the increase in self-employed numbers in the UK, High Street lenders are slow to respond. If you go direct, they’ll still try to fit you into their affordability model.
They will also restrict you to their own mortgage products.
As a contractor, you want the flexibility of a whole of market selection with an interest rate that reflects your status.
After years spent dealing with underwriters, we can offer you that choice. We offer a range of products you won’t find on the High Street anywhere.
Neither does it matter how you trade. From limited company contractor to umbrella worker, there’s a home mover mortgage for you. Whether you’re moving up or down the property ladder, we’ll make sure you don’t put a foot rung.
Here’s what you need to do next.
Simply call us on 0208 421 7788 or click on our Request a free quote button below and we’ll start searching for the best contractor mortgage for you.