Specialists in contractor mortgages
At Yomo Finance, we understand the unique challenges faced by contractors when it comes to securing a mortgage. As a contractor, you don't fit into the standard mould that traditional lenders typically assess, which can make the mortgage application process more complex. That's why we specialize in providing tailored solutions for contractors, ensuring you have access to the best mortgage products and rates for your circumstances. Contact our team in Aylesford to book an appointmet with our advisors.
Understanding your needs as a contractor
As a contractor, your income and employment situation can vary significantly from traditional employees. Whether you're trading through an umbrella company, running your own limited company, or working on fixed-term contracts, lenders often struggle to accurately assess your income and borrowing potential.
Traditional lenders may rely solely on payslips, ignoring additional income sources like holiday pay, bonuses, commissions, and expenses. If you operate through a limited company, they may require multiple years of company accounts, potentially limiting your borrowing capacity if you've been running your affairs tax-efficiently.
Our expertise in contractor mortgages
At Yomo Finance, we have an in-depth understanding of the contracting profession and the challenges you face when applying for a mortgage. Our team of experienced mortgage consultants specializes in working with contractors from various industries, including IT, oil and gas, project management, business analysis, and more. We work closely with a panel of contractor-friendly lenders who understand the unique nature of your income and employment situation. These lenders have specialised underwriting teams trained to accurately assess your borrowing potential based on your contract value, rather than relying solely on traditional income assessment methods.
Tailored solutions for your needs
Whether you're a first-time buyer, looking to remortgage, or seeking a buy-to-let mortgage, we have tailored solutions to meet your specific requirements:
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First-time buyer mortgages: We'll guide you through the process of securing your first mortgage, offering straightforward, jargon-free advice to help you navigate the complexities as a contractor.
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Remortgaging: If your current mortgage deal is coming to an end, we can help you find the most competitive remortgage options, ensuring you secure the best rates and terms for your circumstances
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Moving home mortgages: Whether you're upsizing or downsizing, we'll assist you in obtaining the right mortgage to facilitate your move, taking into account your contractor income and borrowing potential.
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Buy-to-Let mortgages: Expand your investment portfolio with our buy-to-let mortgage solutions, designed specifically for contractors looking to enter or grow their property investments.
We’re highly recommended
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How much can I borrow?A typical mortgage applicant can expect to borrow four and half times their annual income. This should not be affected by your employment type unless your income is low or you have a poor credit score.
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What deposit will I need?There is no specific deposit requirement needed by self-employed applicants and the minimum deposit usually needed for a standard residential mortgage is 10%. That being said, with a short trading history, you will increase your chances of securing a mortgage if you are able to offer more than the minimum deposit requirement. This can also give you access to more competitive mortgage rates.
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Do I have access to the Help to Buy scheme if I’m self-employed with one years’ accounts?All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you. All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you.
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What documentation is needed for a self-employed mortgage application?Tax returns, business accounts and possibly a reference from an accountant. This all depends on whether you are a sole trader, a director of a Limited Company or are in a partnership.
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How many years of accounts do I need to provide?Usually, two to three years of accounts. However, you can get a mortgage with one year's books.
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Can I get a mortgage if I am a contractor or freelancer?Yes, but you may need to provide more evidence of income stability. Typically you would need 12 months history.
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How do lenders assess self-employed income?They typically look at your average income over the past two to three years.
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What can I do to improve my chances of getting a mortgage as a self-employed individual?Keep thorough records, pay your taxes on time and maintain a good credit score. You should also limit the amount of expenses you put through in order to maximise your income.
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Are there specific lenders that specialise in self-employed mortgages?Yes, some lenders are more flexible with self-employed applicants.
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How does fluctuating income affect my mortgage application?Lenders prefer stable and predictable income but may consider averages.
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What is the impact of a limited company structure on getting a mortgage?Your income may be assessed differently, focusing on salary and dividends.
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Are interest rates higher for self-employed mortgages?They can be, depending on the perceived risk by the lender but most do not charge higher interest rates for self-employed applicants.
