Contractor Mortgages – How Much Can I Borrow?

The amount that you can borrow for contractor mortgages varies depending on your personal financial position. It will also depend on the financial position on anyone else who will be a joint applicant on your contractor mortgage application, which may be your spouse, partner, a family member or a friend.

The lender will assess your income and the income of any joint mortgagees and will usually state that you can borrow a certain multiple of your annualised income. For example, if your annual contractor rate would be £30,000 and the lender allows a 4x multiple on your income, the amount that you can borrow would be £120,000. If you were applying jointly with a partner who was earning £15,000 per year, this would also be multiplied by 4, so their multiple would be £60,000. This would give you a joint maximum amount of £180,000 for a new home.

Remember, that the larger the deposit that you put down, the lower your mortgage costs will be and the more likely that a lender will consider lending you more money. It works the same way all over the mortgage industry – lower interest rates are available for those who can place are bigger deposit on the mortgage as there is less chance of negative equity building up if there were a downturn in the market.

At The Contractor Mortgage Company, we will help you through the whole process and it doesn’t even matter if your accounts are up to date or your income is difficult to prove. We have expertise in mortgages for contractors and know which lenders to go to in order to get you the highest possible amount on your contractor mortgage with the best possible interest rates.

Of course, the more proof of your income that you have, the more likely the lender is to offer higher mortgage amounts as the risk is lower than if you self-certify your mortgage. This usually results in lower interest rates too. However if you don’t have the documents to prove your income, we may still be able to help you get onto the first rung of the property ladder, remortgage to a bigger home or buy additional properties.

The mortgage market is a big place, and that’s why we are here to help and guide you. We have years of experience in dealing with mortgages for contractors and we are aware of the pitfalls and obstacles that may need to be overcome, so you know that you are in safe hands. We will always do our best to find a lender who is willing to offer the funding that you require for your property.

You can use our Mortgage Calculator to work out what your monthly repayments will be based on various mortgage amounts so that you can get a better idea of what you can afford in terms of monthly repayments. Just go to the mortgage calculator and enter the required information.

If you are still unsure about how much you may be able to borrow, contact us and we will assist you as we know just how important buying a new home is.

How much can you borrow as a contractor?

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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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