Contractor Mortgages – Mortgage Calculator

What is a mortgage calculator?

A mortgage calculator is simply an online guidance tool to give you an idea of how much you are eligible to borrow from a mortgage lender and how much the monthly repayment will be.

The advantage of using a mortgage calculator is that it will give you an accurate picture on how much you are going to be spending on a monthly basis, allowing you to budget effectively.

If you have seen a home you like, using a mortgage calculator to work out repayments is a good first step.

The variables of a mortgage calculator

As a contractor it is important to know how much you are spending on a monthly basis, so you know how much you need to be bringing in to ensure mortgage repayments can be maintained.

To use a mortgage calculator effectively, you will need to know:

While the first and the third are information you already know, interest rates can be hard to pin down especially for contractors.

Interest rates and the Contractor

Traditionally, contractors have never found competitive interest rates from mortgage lenders.  This is largely down to the confusion over tax structures of limited company contractors.  Many mortgage lenders especially on the high street do not understand the difference between the contract rate and the amount of income shown on payslips and share dividend payouts.

This has been a long source of frustration for the contractor community as it has limited the amount of money they can borrow considerably.

The role of the Contractor Mortgage Company

For a long time we have patiently worked with mortgage providers in an effort to explain the tax structures contractors operate within.  This has led to us forging not only good relationship with underwriters who now understand the tax structure and revenue streams of contractors, but also to offer us exclusive good deals for contractors, using your contract rate rather than your payslips and share dividends to determine the amount of money you can borrow.

Mortgage Calculator Guide

It is a good idea to call us to find out the interest rate or a good estimate of it, so you know what to punch in the interest rate box.  This way you can get an up to date idea on how much interest you will be paying, and a better idea on how much your repayments will be.

This will put you in a position to accurately budget and have a much better idea on what kind of home you can afford.

Contractor Wildcard

If the repayments are too much for you, give us a ring.  Even for contractors there are a lot of mortgage products, and as we have good relationships with mortgage lenders who are friendly to contractors and do not perceive them as a bad risk, we maybe able to package your application to make a mortgage more affordable.

Next steps

Once you have the information from the mortgage calculator and you are happy to proceed call us.  We have honed our skills to make the mortgage application as stress free as possible, and to make it as time free as possible.

We can answer questions, guide you through the application form and then package and present the information to bespoke underwriters on your behalf.  This not only saves you time and stress, but it also saves you money as you are now free to work where as before you would have been filling in forms, and in all probability consuming large amounts of alcohol.

Once we have the application and documentation, we will then package the application form to ensure there are as few stumbling blocks as possible to try and secure an offer in the shortest time possible, as we know you do not want that dream home to get away.

Once a formal offer has been made and accepted, then we can offer a range of services to guide you through the home buying process and to continue the smooth transition for buying your house.

Call us today and see what we can offer.

 

 


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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