IT Contracting - Guides for Professional Contractors
How to become an IT contractor, deal with agencies, find contract work, negotiate IR35 and other tax rules, and stay off the bench!
Do contractors have to pay higher interest rates on their mortgages?
no, contractors are not seen as ‘high risk’ workers – as perhaps they were a decade or so ago. many lenders are more than happy to lend to contract workers – and rates are no different from those of traditional ’employees’.
How many years’ accounts do i need to prove my income?
although most company owners will need to provide company accounts to prove their income, specialist brokers are able to secure you a mortgage based on your contract rate alone. the unique nature of contracting used to be a hindrance when buying property, however, these days many lenders are happy to provide mortgage products to new contractors, based on the terms of your current contract.
I’ve just started contracting. can i still get a mortgage?
yes. specialist brokers can arrange mortgages for contractors who have just started their first contract.
What paperwork will the broker need from me?
all lenders will require proof of your name, address and income. if you are applying based on your contract rate alone, you will need to provide a copy of your contract. if you’re applying using your company’s accounts, then you will need to provide signed copies. find out more in our mortgage application guide.
What is an agreement in principle?
when you / your broker approaches a lender, and have provided them with your basic details, they will provide you with an agreement in principle (decision in principle) – which states, subject to further checks and proofs of income, they will be willing to lend you £x. this is not a guarantee that they will lend to you but should give you the confidence to make an offer on a property. an agreement will typically last from between 60 and 90 days.
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