Contractor Mortgages are specially designed to help self employed people or businesses that do not always have a fixed salary. They have been introduced keeping in mind the needs of contractors and people who are self employed who may find it difficult to get a normal high street mortgage.
The process of attaining any kind of mortgage requires the execution of many procedures such as preparing and submitting all the correct documentation and this incurs costs that need to be paid in order to process these documents. The most essential thing that cannot be ignored is the mortgage approval. Waiting for the approval of a normal mortgage can be a lengthy process and is often depressing because the waiting times often result in a negative response.
This rejection may be due to various reasons like incomplete documents or the need of other essential elements. There are many times when banks do not pass the loans due to its various conditions. However, with a Contractor mortgage these response times can be speeded up as they will ensure that all the paperwork is completed correctly and will check out the bank’s terms and conditions before the application is processed. They with basically help the client to get the mortgage they are looking for.
One of the major issues that may arise is due to your income. You may receive a high income if you are self employed and in some instances your wages can be higher than that of someone who is in full time employment. This is a vital aspect that you must stress to the lender which can improve your chances of getting the loan. There are many lenders who understand the value of this difference between the wages. They will focus on this factor and decide accordingly as to whether they will approve your loan.
Being self employed has its advantages as you don’t have anyone to answer to apart from yourself; however this can also bring with it a lot of responsibility and very long working hours. It can also prove to be a tough job when it comes to proving your income. There is always a certain doubt when carrying out the work as to when you will be paid and whether you will receive the money in time. Obviously when you borrow a large amount of money you are required to pay back an agreed amount on a certain date on a regular monthly basis. For people who have an irregular monthly income it can be difficult to prove that you are able to keep to this agreement. Contractor mortgages are the best option for self employed businesses as they will help you to overcome any possible obstacles regarding your income.
