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Mortgages for professional contractors just got better

The UK's largest lender HALIFAX has just made it a lot easier for professional contractors struggling to get on the property ladder.

Previously HALIFAX only allowed contractors working in the IT sector to apply for a mortgage based on their daily contract rate.

Contractors working in non IT professions were assessed for a mortgage based on their salary and dividend drawings. They were also required to provide far more evidence of income - which IT contractors did not.

But as of today Halifax will treat all Contractors the same.

John Yerou, of Freelancer Financials, says: 'This is positive news for the UK's contractor community'.

'Britain today has a higher number of self-employed contractors and freelancers than ever before. It's crucial they are catered for by the big mortgage lenders'.

Why this is good news?

The change in criteria will be celebrated with open arms by non-IT professional as this means they will no longer be assessed on a multiple of their salary and dividend drawings.

All professional contractors working in banking, finance, accountancy, consulting, engineering and NHS will benefit from this change in criteria, subject to meeting certain minimum income and industry experience criteria.

This is also great news for all those contractors just starting out with NO trading accounts. 

The majority of lenders demand contractors provide a minimum of two years accounts or uninterrupted contract history. But Halifax will accept applications from contractors on their very first contract. 

How to apply

To apply for a mortgage you need to be on a minimum daily contract rate of £312.50 a day or £75,000 a year before tax.

To calculate how much you can potentially borrow, simply multiply your daily rate by the number of days you work each week and multiply this again by 48. Then multiply this total by five. This will give you an approximate figure of how much you can potentially borrow to buy or remortgage a property.. 

Your credit rating and personal commitments will also influence your borrowing potential.

When applying for a contractor mortgage we recommend you speak to a mortgage specialist before applying direct. It just isn't worth the risk going through a standard broker that doesn't have the knowledge or experience in securing mortgages for contractors. 

For further information on how you can qualify for a professional contractor mortgage click here or contact Freelancer Financials on 020 8421 7999, quoting Freelance Supermarket.

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by Sean MacEntee