Mortgages? Don't wait to be turned down on the high street...

Whether trying to buy your first home, moving up the property ladder or adding to your portfolio of assets you may need to consider your mortgage options. Here at Orange Genie Accountancy we work closely with ContractorFinancials who can help freelancers and contractors who often struggle to secure a mortgage.

Every other client that contacts the advisers at ContractorFinancials has been turned down for a mortgage on the high street. This not only costs you time and can delay your purchase or even cost you your new property, it also affects your chances of securing a mortgage through another route because every failed application is a black mark on your credit profile.

Below, the Contractor Mortgage Advisers have shared some case studies with us that highlight how they have helped clients to regain control of their purchase or remortgage after a failed application on the high street…

Case Study 1 – Remortgaging as a Contractor

A client came to ContractorFinancials because they were looking to remortgage and had failed to secure funding from their existing provider. Two years ago, the client had brought a property and taken a large salary and dividends that year to cover the deposit on their purchase. This large withdrawal had allowed them to secure sufficient lending on the high street because they had a large income showing when they applied direct.

However, in the last two years since moving in they have been drawing a minimal salary and dividends from their limited company because they have not needed to cover any large expenses in that time. When their two year fixed rate came to an end last month, they tried to apply to their existing Lender to remortgage and release some capital but when their lender looked at their last two years accounts, they declined the application because the affordability didn’t stack up.

The client spoke to some contractor colleagues and they told him about ContractorFinancials so he got in touch. ContractorFinancials are able to secure mortgages based on contract rate alone which was the perfect solution for this client because of the low salary and dividends that they have been drawing in the last two years.

They were able to secure him a remortgage with a well-known high street Lender because they deal with Senior Underwriters in the Lenders centralised processing units rather than high street branch staff. ContractorFinancials submitted the application using the contract based underwriting that they have secured with the Lender and they offered the client 4.5 times his annualised contract rate which enabled him to release a significant amount of capital from his property to fund the home improvements that he had planned.

The great news is that rates had fallen significantly since the client took out his initial two year fixed rate so he was able to secure a lower rate and his monthly repayments only marginally increased despite increasing his loan amount. The even better news is that ContractorFinancials do not charge a fee for their mortgage service and were able to get the lender to cover the legal and valuation fees associated with the remortgage. They also arranged for the lenders application fee to be added to the loan amount so the client had nothing to pay upfront. 

Case Study 2 – Contractor newbie’s beware

ContractorFinancials recently helped a contractor who had just gone freelance to secure a mortgage after he was turned down by a high street lender. The client had been working as a permanent employee in his industry for the past five years for the same company but had recently taken the decision to go freelance and was now earning significantly more.

However, when he went to his local branch of a well-known high street lender, he was flatly refused a mortgage because he didn’t have the required two years company accounts to prove his income. His colleague suggested that he give ContractorFinancials a call because she had recently secured a mortgage through them despite only contracting for a year.

ContractorFinancials work from contract rate alone when securing a Contractor Mortgage so theyquickly set to work searching for the best high street mortgage rates for the client. Once he had decided which lender he wanted to apply to, the team submitted his application with their experienced underwriter and within an hour the client was given an agreement in principle.

As long as you have a history of working in your chosen industry, theycan secure you a mortgage even if you are in the first day of your very first contract. All that is neededis a copy of your CV and a signed copy of your contract which proves to the lender that you have a track record. Three months bank statements, a utility bill and two forms of ID will be required but crucially, they will not ask for two years company accounts which will almost certainly be required if you apply direct to a lender.

The great news is that ContractorFinancials won’t charge Orange Genie clients a fee for their mortgage service which saves you over £500 compared with other brokers so you benefit from all of their help and expertise for free!

To find out more about how ContractorFinancials can help you secure a mortgage even if you are a first time contractor, get in touch with Orange Genie Accountancy or your dedicated accountant and call 01296 468 185 or email; accountancy@orangegenie.com 

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