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Mortgages for IT Contractors

With most High Street lenders hesitant to lend to IT contractors because of the tax efficient ways they are paid, it has become clear there is a need for professional independent mortgage advice. If you operate under the IR35 rules you may show a small salary and high dividends or work under an umbrella company which shows your net income to be low yet affordability to service a loan will be high.

Most lenders will understand their clients wanting to be tax efficient but will also understand the volatility of contract work: The lack of rights, no sick or holiday pay or redundancy cover.

Our lenders look at your contract rate to assess affordability and will lend up to 5.5 times income depending on age, credit history and outstanding debt. They do not ask for 3 years accounts.


Why us a specialist mortgage broker?

The problem you may face is that most bank staff or call-center agents are not accustomed to your unique circumstances. Even though your income may be greater than someone who is employed, you may not qualify for the banks strict lending criteria. If you manage to find a lender who will give you a 'mortgage offer in principle' you may have missed out on a lower rate or special deal from another lender.

If you’re looking for a new mortgage or to remortgage: the role of a specialist broker is to secure the best deal possible by searching the whole market. We will assess your circumstances and compare all deals on offer from all lenders. We then check the lenders affordability and lending criteria and even contact them to discuss the possible success of your application before proceeding. This will be completed without leaving a single footprint on your personal credit report. Too many credit checks can have an adverse effect on your credit rating making lenders less likely to agree a maximum loan amount.

We recommend (top tips)

We recommend 10% to 15% deposit, but aim for a minimum of 5% deposit for 95% loan to value. A high deposit will lower the risk to the lender and you will also benefit from lower interest rates.

Ensure that your contract is up-to-date and signed. Your contract must state your current rate and length and should include any terms and conditions. For some mortgage applications it may be necessary to provide references and 3 years of accounts.

Check that your credit report is clean, missing a single credit card payment or not updating the electoral roll could make all the difference – if you are not sure about your credit status then apply for a free 30 day trail with Experian

Speak to us first! We can strengthen your buying power by arranging a mortgage that is "agreed in principle" prior to you making an offer.

Being sensible with the amount you would like to borrow, circumstances can and do change and all lenders will assess your level of affordability. Although you may be earning a high wage today tomorrow may bring up some unforeseen expenses. Borrow wisely so you can easily make your mortgage repayments.

What Next?

Contact us on 01844 390910 to get a maximum loan amount and a decision in principle from the most suitable lender. Our advice is free.

Choose a home you would like to buy. Underwriters will assess your application based on the type and location of your potential new home.

Complete the mortgage application check list

For Independent Advice
Complete our Mortgages Enquiry Form

We have helped hundreds of IT contractors to find the right mortgage because of established relationships with the people that understand, who in turn trust the applications we put forward.

You can choose how Bright Money Independent Ltd are paid for mortgages; typically we do not charge however, you can pay a fee, usually 1% of the loan amount,
in cases that more work is required we may agree a fee upfront before any work is undertaken.
For Equity Release we are typically paid by the lender, however we offer a fee only service which is 1.5% of the loan amount.
Trading Address - 5a Cornmarket, Thame, Oxfordshire, OX9 3DX
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Registered Address - Coleridge House, 5-7A Park Street, Slough, SL1 1PE | Registered in England No 07801150