Search Coreco

Mortgages as flexible as you are

The modern working environment has evolved, but so have we. We are experts at pairing contractors, freelancers and the self-employed with a mortgage provider who understands exactly how you work.

What can I borrow?

Lenders will look at how much you earn and your outgoings. Some will work off your last 2 years accounts or even your last contract.

Which mortgage?

This is where we come in. Our expert advisors will find out all about you, your history and future plans, and let you know.

How we help

We don’t just pick a mortgage product that suits the way you work, we will be by your side until you’ve turned the key in your front door. And we’ll even stick around afterwards (if you’ll have us).

Important information

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances.
A typical fee is £495.

So, how does it all work?

For a contractor or freelancer, lenders do not have the luxury of assessing guaranteed employment and income. They, therefore, need to make themselves comfortable that the income currently being received is going to continue. In order to do so, they will want to assess factors such as your experience in your industry, your history of contracting, the length of the current contract and the likelihood of it being renewed. Lenders offering mortgages to contractors will each have their own criteria in line with this, and that is where it can get quite complex.

If you are new to the world of flexible working, welcome. No more getting shouted at for being 5 minutes late by a boss full of their own self-importance.

Even at this very early stage of your contracting journey, you are now able to be considered by certain lenders. These lenders would be able to consider you on your first contract as long as you have a minimum of 6 months remaining on a contract with at least a 2-year uninterrupted history in the same line of work, be that on a full time employed basis or otherwise. There is often a minimum daily rate requirement when it comes to mortgages for contractors, unless you can be regarded as an IT Contractor where no such minimum rate applies. Once you have 6 months of contracting experience and if you have a further 6 months remaining on a contract, or can evidence an extension to cover this time the minimum daily rate can potentially be waived for all other professions.

Once you have at least 2 years history of working on fixed-term contracts in the given industry, a much greater number of lenders will be able to consider your application. These lenders will want to have seen contracts renewed previously, whether this has been on a 3-, 6- or 12-month rolling basis and at least 6 – 12 months remaining on the existing contract, although as low as 3 months can be considered on a case by case basis. Once they have comfort that this criteria has been satisfied they will then look to assess the lending amounts available. With 2 years’ experience, the requirement for a minimum daily rate will be far more relaxed.

A typical approach to lending multiples is to look at your daily rate, not including VAT, multiply this by 5 to give a weekly rate and then multiply this weekly rate by between 46 and 48 to allow for small gaps in employment and breaks for holidays. This will provide a lender with the ‘targetable’ annual income to assess affordability and the application.

Mortgages for the self-employed and freelancers are an alternative option for experienced freelancers/contractors working on a gross pay basis. After you have been working as a contractor/freelancer for a good length of time, typically 2 years +, and assuming you are responsible for paying your own tax, a whole new host of lenders will become available to you as you can now be regarded as truly “Self-Employed”. The vast majority of lenders are happy to lend to self-employed applicants, working as a sole trader or as a director of a limited company, as long as you can demonstrate earnings through two- or three-years’ accounts, SA302’s and associated tax calculations which you can obtain online from your HMRC Account.

When assessing Self-Employed income different lenders may take into account different things. Some will take only the Net Profit Before Tax figure, some will look to assess the Directors Remuneration/Salary plus Dividends into account. Others may look at retained profits and cash in the business. A good mortgage broker can review business accounts, select the most appropriate lender for your situation and advise the best options and lending limits accordingly.

Many banks and building societies are more than happy to lend to contractors, self-employed and freelancers, from those right at the start of the journey through to more experienced, long-term contractors and business owners. The key is to identify the most appropriate lender and structure the right approach, which of course is best achieved working alongside an experienced, professional mortgage broker well versed in the requirements of contractors and freelancers.

Call our specialist contractor and freelancer mortgage advisors now on 020 7220 5110.

Latest contractor, freelancer and self employed mortgage offers

We know you’re curious so we’ve picked out some of today’s best mortgage rates to give you an idea which lenders and interest rates could be available to you.

    Latest mortgage best buys

    Based on a property value of £300,000 with a £30,000 (10%) deposit

  • Initial rate
    Overall cost for
    comparison
  • 1.23%
    then 3.3%
    (variable)
    3%
    APRC
  • 1.34%
    then 3.59%
    (variable)
    3.3%
    APRC
  • 1.74%
    then 4.49%
    (variable)
    3.9%
    APRC


  • Narrow down the right mortgage for me

Calculators

How much can I borrow?

Annual Salary (£)

Bonus (£)

Mortgages for freelancers guides

Newbie? You’ll feel like an expert in no time with our jargon-busting mortgage guides

View All

4.8
132 reviews

Excellent
Robert Glass
"Jenny and Jan were great throughout the house buying process being a first time buyer they..."

Read full review

Robert Glass
Jenny and Jan were great throughout the house buying process being a first time buyer they made everything straightforward. I had spoke to Jan multiple times before eventually buying somewhere and he was always happy to help with advice and guidance. They were both always on hand to help and made the whole thing seamless. I will definitely remortgage using Coreco and have already recommended a few of my friends and family.
Pete Freeman
"Both Jan and Jenny were a massive help throughout buying our house. It wasn’t a simple..."

Read full review

Pete Freeman
Both Jan and Jenny were a massive help throughout buying our house. It wasn’t a simple purchase and at times I thought it may not go through, but they were always confident and delivered on what they promised. We are so happy in our new home and can’t thank them enough!
Cassie Kelly
"Jan and Jenny were amazing! I found the house buying process very stressful as we faced..."

Read full review

Cassie Kelly
Jan and Jenny were amazing! I found the house buying process very stressful as we faced a few issues that cropped up during the whole process. They were both a calming and knowledgeable presence throughout and always available when I was having minor panics! Very reassuring and wouldn’t hesitate to use them again

Get in touch


    www.coreco.co.uk/privacy-policy