So, mortgages...

[Freelancer Financials]

Contractor Mortgages

A snippet on the 6 o'clock news about tightening up on mortgages implies that the good old self-cert mortgage is to be banned. Not a peep about how this could affect the self employed or contractors who use these mortgages as accounts often don't show the real level of earnings.

I'm hoping the likes of Contractor Money or other specialist brokers will still be able to find competitive deals for those of us still requiring a mortgage.

In light of all the recent headlines on the FSA banning "self-cert mortgages" and continued tightening of lending criteria for self-employed workers we have posted two articles on our web site that address contractors concerns about how these changes might affect their chances of getting a mortgage.

Mortgage update for Contractors

Tougher mortgage regulation by FSA

But even in these difficult financial times securing a mortgage does not need to be an issue for a Contractor. The key is to ensure that the mortgage application is properly packaged and is placed in front of the right decision makers within the lending institutions.

An experienced Contractor specialist mortgage broker will have direct contact with key people within the lenders head office senior underwriting teams and hopefully, like us, will be able to base your earnings on a simple multiple of your contract rate alone.

This means that you don’t have to rely on the traditional method of using accounts, which may not fully reflect the total earnings that you have at your disposal, for income verification on a mortgage application.

Whilst most mortgage brokers will charge you a broker fee I'm very proud to say there are still a number of brokers who, like ourselves, are able to deliver this service without cost to the borrower.

[Doggy Styles]

I appreciate for some contractors without 3 years worth of accounts it was legitimate and often the only route.

This is true, but having to provide three years of accounts comes with the contractor's territory. Like no redundancy pay, no sick pay and no paid holidays.

[Bagpuss]

Well self cert became synonymous with self lie (downright fraud IMHO). I appreciate for some contractors without 3 years worth of accounts it was legitimate and often the only route.

[ladymuck]

A snippet on the 6 o'clock news about tightening up on mortgages implies that the good old self-cert mortgage is to be banned. Not a peep about how this could affect the self employed or contractors who use these mortgages as accounts often don't show the real level of earnings.

I'm hoping the likes of Contractor Money or other specialist brokers will still be able to find competitive deals for those of us still requiring a mortgage.