Contractor Mortgages for First Time Buyers

Since the financial crisis that began in 2008 it has been extremely difficult for first time buyers to get onto the property ladder, as lenders require large deposits and water-tight proof of income. This can cause issues if you are looking for contractor mortgages and you do not have up to date accounts, or are missing documents such as your P60. Mortgages for contractors are notorious for being complicated and difficult to find. But we’re here to help, as we specialise is contractor mortgages and can complete the entire mortgage process for you. Lenders are now interested in low risk investments, but we can help you to buy your firs home with our experience and expertise in mortgages for contractors.

There are many things that you need to consider as a first time buyer, and we will explore them with you on this page.

What Can You Afford?

Before you do anything, you need to work out what you can actually afford. We have information on this site to help you with this area of your planning. Take a look at our ‘Mortgage Calculators’ and ‘How Much Can I Borrow’ pages. This will help you to get a realistic view of what price bracket you should be looking at, and if you need to cut back on any areas of spending to afford that dream home.

What you can afford will not just depend on your income, but what you can offer in terms of a deposit. Most lenders in the current climate look for a 15-20% deposit.

Approaching Lenders

We will approach the lenders for you so that you don’t have to do all of the leg work. We are able to pass your information to lenders to obtain an ‘agreement in principle’ which will give you an idea of whether you are likely to be accepted based purely on the figures that you have provided. These figures will have come from your finance planning exercise ‘What Can You Afford’.

First Time Buyer Contractor Mortgages

First time buyers are often very attractive to sellers who want to move quickly, because they have no chain (their own house to sell before they can fund the purchase). If you are buying with a partner, friend or relative, this will increase your chances of getting a mortgage for the first time as if they are employed (rather than contracting), their income will mean that your application is less risky.

But even if you are buying alone and need a contractor mortgage, we can help as we know the lenders who are lenient with contractors and freelancers, and who understand the financial position that you are in. In the next section, we will explain the buying process so that you know what to expect.

The Buying Process

Step 1 – Viewing The Property: Once you’ve assessed your affordability you can start to view homes within your price bracket.

Step 2 – Make an Offer:  When you find a home that you like, you can put an offer in but make sure that this is within your price range.

Step 3 – Appoint a Solicitor: We can point you in the direction of a solicitor to deal with the legal side of buying your property.

Step 4 – Choosing a Mortgage: We will search the whole market to find a suitable contractor mortgage to suit your needs.

Step 5 – Arrange Valuations and Surveys: Your new property must be surveyed to highlight any faults. A contractor mortgage valuation is also required by the lender to ensure that the property value is correct, as the property is security for the loan.

Step 6 – Contractor Mortgage Offer: When the lender is happy with the valuation, they will issue you with a formal mortgage offer.

Step 7 – Exchange of Contracts: This is when you will sign your contract, pay your deposit and agree a completion date.

Step 8 – Completion Date: This is when you complete the final paperwork and the process is complete. Many buyers choose to move in on the completion date.

How much can you borrow as a contractor?

Mortgage Jargon Buster

Struggling to get to grips with mortgage related terms? Use our quick-reference guide to help you.

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Please note: the financial advice given on this page is provided by Mortgages Made Easy Limited and is authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 4886692 Registered Office: 9 London Road, Southampton SO15 2AE.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please be aware that Buy To Let, Commercial Mortgages and Overseas Mortgages are not regulated by the Financial Conduct Authority.
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