Most financial institutions are a bit wary about lending aid to someone who’s not backed up by a big company. If you are such a person, there’s nothing to worry about because there are many contractor mortgages available on the market. This financial aid is designed specifically for freelancers.
What to know about contractor mortgages
With a contractor mortgage, there are still points for consideration. Before you can get your mortgages approved, you have to present a few documents to prove your contract’s rate, the duration of your current contact, how long you’ve been freelancing (successfully), and how well you’ve saved up. While contractor mortgages are designed to be friendlier to freelancers, they do not cater to unemployed individuals, so you will have to prove your financial stability even if you’re not working for a big company.
Contractor mortgages and self-certified mortgages
The distinction between contractor mortgages and self-certified mortgages should also be made. Obviously, self-certified mortgages are riskier for the mortgager, so the interest rates and terms are much more stringent. Contractor mortgages, on the other hand, are determined by the contracts you may have as a freelancer. This means that while they do welcome freelancers with open arms, they only approve mortgage requests for those who earn reasonably well in their right.
How to apply for contractor mortgage
You can apply for contractor mortgage if you’re a freelancer who meets all the requirements. If you have a bad credit rating, or if it’s your first time buying a property, you might find it easier to apply for contractor mortgage. You’ll also be happily surprised that there are a lot of mortgage options to choose from.
As long as you have enough profits and experience as a freelancer, you should be able to avail of these. There’s a myth going around that you still needs to establish about 36 months’ worth of purchasing and accounts to be approved for this kind of mortgage, but it’s not true.
Contractor mortgage interests
Are you afraid that contractor mortgages are too expensive for you? Comparatively speaking, most of them do have a higher interest rate compared to conventional employee mortgages, but these rates are, for the most part, tolerable. Just make sure that you know your options before signing up for contractor mortgages.
The rates and terms will always depend on the financial institution or agency you’re talking to. In general, the rates and terms are kinder to proficient freelancers who do what they do well and get a lot of clients. If you can prove that you’re good at flying solo, you shouldn’t have any problems in getting good mortgages.