When it comes to securing mortgage funding, the majority of high street lenders will want to see a minimum of two years of accounts. They will then use that information to assess your affordability based on a multiple of your salary and dividends.
For many contractors it will be impossible to provide this information and if you can, it could potentially lead to problems as contractors tend to employ tax efficient methods, meaning the salary and dividend they choose to draw does not reflect their full income.
This can be very frustrating as despite having the savings and income needed to pay a deposit and to keep up with repayments, you may still be refused a mortgage simply because you do not fit in to standardised procedures.
However, there are other options to consider before taking a chance and going down that route.
Getting a contractor mortgage with 1 year of accounts
Contractor Mortgages Made Easy are able to present your mortgage application in a way that complements your contract.
Over the years CMME have built up relationships with a number of established lenders and have put in place underwriting with contractors in mind. As a result of this persistence, CMME are able to secure mortgages for contractors based solely on contract rate. These terms ensure the risk of an underwriter rejecting the application is at the absolute minimum.
There are a number of lenders that are now deemed ‘contractor friendly’ and CMME continue to work with other lenders to increase this number. All these lenders understand the way contractors work and are willing to assess borrowing on contract rate alone.
If you are a contractor with 1 year of accounts and are looking for a mortgage, contact us for a free no obligation consultation.