Working as an IT contractor can pose some great benefits. It can provide you with flexibility, the power to dictate your own hours and the opportunity to earn more money than you could earn if were employed on a full-time basis.
But whilst being an IT contractor is great for a multitude of reasons, obtaining a mortgage without a permanent position can be tricky. But it is possible to get a mortgage as a contractor or self-employed individual and there are mortgage lenders out there that are willing to help you secure a mortgage that’s best suited to your needs and circumstances as an IT contractor.
Why might an IT contractor struggle to get a mortgage?
Since the credit crunch, lenders have tightened their criteria over the past few years and because of this, contractors have struggled to obtain a mortgage or loan. This is because contractor mortgages have previously fallen outside the bank and building societies strict lending criteria and many lenders see it as a grey area. In the past, lenders have been concerned by contractors not being able to supply consistent payslips, or where accounts don’t reflect true income.
Another reason why you might find it more difficult to obtain a mortgage as an IT contractor as opposed to someone employed by a company is that sometimes you may not receive a regular income – one week you may earn more or less than the last. Because of this, high street banks perceive you as high risk and as a result, they are less likely to accept your application for a mortgage and more likely to decline your application for a mortgage.
However, there is hope for IT contractors when it comes to obtaining a mortgage. All you need is the right help and guidance and you can get access to mortgages from a variety of different lenders at your fingertips – which we can help you with.
Getting a mortgage when you’re paid a day rate
If you’re worried that you might not be able to obtain a mortgage as you’re paid a day rate, rest assured there are some lenders out there that may be willing to calculate your annual income on the basis of your day rate, but many require you to have a 12 month contract for this to be done. This approach can be particularly useful as an IT contractor, if you do not have an established track record or if you have only just left full-time employment.
How we can help
When you apply for a mortgage, you need to make sure it’s the right mortgage for you, otherwise, you’ll be wasting your time and you’ll potentially face many setbacks. However, we are specialist mortgage advisors that can search through a number of contractor mortgage deals to save you the time and hassle. We can find exclusive offers and mortgage rates which high street lenders might not have access to.
So if you’re an IT contractor struggling to obtain a mortgage, contact the Mortgage Consultancy today and we’ll help guide you in the right direction.