Are there any lenders who look more favourably at contractors?

Posted on 23 June 2014 by Hong

Hi, I have a question in relation to mortgage availability for contractors/temporary workers.
I am currently working in a temporary role for an investment bank and, as is the norm in the industry, the role is offered on a rolling 3 month basis. The role is considered long term and there are indeed a large population of temps in the department, many who have been working there for 5 years+. I have worked in this role since March and have recently had my contract renewed until the end of Nov. Previous to this I worked in a similar (permanent) role for just over a year.
I just really wanted to find out where I stand in terms of which, if any, mortgages are available to me. Having spoken to a couple of high street lenders who say they are unable to consider an application from me unless I have been working there for 2 years, but have been told that there may be specialist lenders who can offer contractor mortgages if they can show evidence of a stable income for a minimum of 6 months. I am on an hourly rate, and an average weekly income of approx £1100, and I have around £40k saved for a deposit. Any advice or info is greatly appreciated. Many thanks, Hong


It's certainly true that are a number of specialist lenders who have specific criteria for contractors, and there are also lenders who manually underwrite cases and will look at contractors a little more sympathetically than the high street tends to.

The loan to value that you are looking at, as well as the rest of your overall financial position will also play a part in working out how much you may be able to borrow, as there are now new affordability rules in place, which mean that actual loan sizes can vary from each one. For that reason I'm unable to give any real figures until such time as we know your full circumstances.

I think it would be worth exploring your options in more detail, and you can do this by contacting one of our consultants on 0344 346 3672 and they'll be able to give you a far better idea of how we can help.



More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.