Which Are the Top Lenders for Contractor Mortgages

 


Given the contractors' work nature, it is not easy to find a lender to understand their needs and circumstances. But most contractors or self-employed do not have a fixed income, and their payments change at different times.

Therefore, traditional lenders are less interested in lending to contractors or have higher rates and conditions than the current market rate. Here are the best lenders who specialize in mortgages for contractors.

However, these contractors are based on various indicators, including Loan-to-Value ratio, mortgage repayment period, required documents, the process of evaluation, underwriting and lending, closing costs, private mortgage insurance and other related costs. Acceptance of applicants, as well as feedback received from their former customers, are also categorized.

However, it should also be noted that different lenders consider different rates and conditions for contractors based on the affordability of the applicants and the type of products they offer.

The Top Lenders For Contractor Mortgages

Here are the top 5 lenders in the UK who are contractors-friendly and have designed unique products for them.

Halifax

As the UK's largest lender, it has the largest share of the mortgage market and one of the most contractor-friendly lenders. Over the years, the company has provided reasonable and flexible rates to contractors.

Clydesdale Bank

Clydesdale Bank is a highly flexible institution offering products related to contractors. Not only do many contractors lack significant professional profiles, but they also lack some standard contracting criteria. But Clydesdale also provides lending services to a wide range of contractor mortgages in the UK, as well as advice. The bank also works closely with contract mortgage brokers, and if a broker has thoroughly reviewed a contractor's financial condition and provided positive feedback, Clydesdale Bank will offer mortgages at reasonable rates and terms to contractors.

Kensington

Kensington is another UK-based brand contractor mortgage, ready to work with contractors on small mortgages with specialist mortgage advisors. It also accepts contractors with lower incomes and weaker credit. The institute has a variety of tools and methods to assess the affordability of contractors.

Kensington mortgages are a good option for sole traders, self-employed and UK freelancers and contractors.

The Nationwide Building Society

The Nationwide Building Society has designed a variety of products and services for umbrella contractors. Contractors operating as umbrella companies can take advantage of the favourable rates and conditions of the Nationwide Building Society.

Metro Bank

Metro Bank has designed a contractor-specific underwriting process and rates based on the contractor's ability to get a mortgage and the amount it can borrow, using a particular calculation method. The institute has also designed products for investment mortgages, contractors with umbrella companies and limited liability companies. The institute also accepts contracts from professional contractors and provides mortgages to professionals.

Conclusion

As mentioned above, lenders consider different criteria and methods for evaluating contractors. They also design other products for contractors and usually specialize in one or two mortgages. However, some lenders prefer to offer their products through contractor mortgage brokers because it carries less risk. 

Also, if you go directly to the lender, you will probably not be given the right conditions because a contractor mortgage broker will sign several contracts with one lender in a month, and therefore lenders will provide more favorable terms to the voting contractor mortgage brokers. However, it is time-consuming to go to each lender to get the terms and conditions of the contractor mortgages. However, not all lenders offer mortgages related to contractors.

AWS Mortgage specialist advisors have much experience in contractor mortgages and are ready to provide you with the necessary guidance in the various stages of writing and getting a mortgage.


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