How Orange Genie Can Help You Get a Mortgage

Mortgage

Many contractors face difficulty securing a mortgage, mostly because high street lenders don’t understand the contracting world. When they ask for evidence of income, they’ll expect to see conventional employment. A successful and lucrative contracting career, with its many different assignments and occasional periods of downtime, can look risky and unstable to them.

Contractors who are engaged directly by agencies might also struggle to get the evidence a mortgage lender needs, particularly if they want a reference or an income statement from an employer.

The irony is that, in general, contractors are less of a lending risk than conventional employees. You often earn more, you have more control over your own destiny and you often have more marketable skills. The very fact that you’re used to moving from one assignment to another makes you less vulnerable than conventional employees, who can find themselves in trouble when their circumstances change.

Convincing a lender of that can be problematic, though. They have rules to follow, and boxes to tick and most have not yet caught up with the increased popularity of contracting. So, what’s the answer?

If Orange Genie is your employer

Employment with Orange Genie Umbrella solves some of these problems. You have one employer and one period of employment across all your assignments. This includes any downtime between assignments, so even if you worked for nine different agencies and took a month off in between, your employment history will show a single, unbroken period of employment.

Your payslips clearly show your income and when you were paid, and we’ll happily provide you with an income reference if you need one. If necessary this can cover the whole period of your employment with us.

We’re used to helping contractors with this kind of issue so if your lender is asking for evidence that you’re unsure about, don’t panic. Talk it over with our Contractor Support Team and we’ll do everything we can to help.

Using a contractor mortgage specialist

Because we know this issue affects a large number of contractors, we’ve partnered with contractor mortgage experts CMME. They will use their expertise and experience to find the best lender for you, and help you secure a mortgage based on the contract rate.

CMME are one of the largest mortgage brokers in the UK, and because they have access to specialist underwriters who understand contracting, the process will be as smooth and fast as it is for conventional employees. You’ll also have access to the same range of deals.

 Give yourself the best chance of securing a mortgage

For contractors, just as with anyone else, there is some basic advice you should follow when applying for a mortgage:

Assemble the correct documents:

As well as proof of your income you’ll need bank statements, strong ID, proof of address and possibly other evidence as well. Make sure all your documents are in order and up to date.

Make sure you have a good credit rating:

A bad credit rating can still cause you to be refused a mortgage, even if your earnings are healthy and you have a large deposit. Make sure you appear on the electoral role at the correct address and don’t miss any payments on loans or credit cards. It’s often best to leave new credit applications until after your mortgage is approved. There are several free mobile apps that will give you your credit score, flag any issues and advise you on how to improve it.

Be realistic about affordability

It’s important to be sure you can afford the repayments, so don’t overstretch. You should also consider the possible effect of a future rise in interest rates, and make sure you could cope if your repayments went up.  

If you have any questions about contractor mortgages or if Orange Genie can help in any way, please contact our expert team on 01296 489242 or email helpme@orangegenie.com.

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