Home Mover Mortgage
The easy way for those earning a day rate to make their next move
Secure your new place without the need for payslips and paperworkSpeak to an expert
Looking To Move Home?
Did you start earning a day rate after you got your existing mortgage or was buying your last home a real hassle? We know the feeling.
With most lenders lacking an understanding of how this sector works, it can be hard to find one willing to offer you a reasonable mortgage rate.
Let us help reduce the moving home headaches.
You don’t have the regular payslip that most mortgage providers look for. But that shouldn’t stop you from moving home if you want to. That’s why we calculate what you can afford based on your day rate and only select mortgage providers that understand the way you receive your income.
Our experts will talk you through the process and recommend mortgage products that fit your needs and circumstances.
Our advice & fees:
We only offer advice on first-charge mortgages. We charge a flat fee of £500 for our services, this is split into two payments. When we issue your AIP (Agreement In Principle) we charge £100, then a further £400 is charged on application. This means that that if your application
stalls at the AIP stage you are only liable for the £100. If we charge you a fee, and your mortgage does not go ahead, this fee is non-refundable.
You may be able to claim compensation from the FSCS if we cannot meet our obligations. The amount of compensation available will depend on the type of business and the circumstances of the claim. We can provide more specific information on request, but as a guide:
Eligible mortgage claims related to advising and arranging are covered for 100% of a claim up to a maximum limit of £85,000 per person per firm.Speak to an expert
How hard is it to get a home mover mortgage?
With the right support, it’s not hard at all.
If you can pay a minimum deposit of 10% of the property price and provide proof that you can cover the fees and stamp duty required for your mortgage, it’s simple. You just need to provide us with a copy of your employment history, contract (including your day rate), three months of bank statements and proof of ID.
We do the hard work for you.
Mortgages are notoriously admin-intensive, which is why we take the paperwork off your hands. Explaining every step, we’ll fill out the forms for you and deal with solicitors and estate agents on your behalf.Speak to an expert
Ready to make the move?
Fill out the form below to arrange a time to speak to a mortgage expert.
Why should I use a specialist Contractor broker?
By all means, go to a high street lender to satisfy your curiosity, but in most cases, the lender will have issues with how income reaches the contractor. High street lenders understand dividends, but business owners, professionals and contractors who are tax efficient and only draw down a minimum salary and dividends to meet their needs won’t look good. Specialist brokers like us go to the same lenders you see in the high street but at the head office underwriter level. This means they are speaking to people with a bigger lending mandate and a knowledge of this sector contractors, and they use the contract to define a contractor’s income.
Do I qualify to be assessed for a mortgage on contract value?
Lenders who specialise in mortgages for those earning a day rate typically assess the amount that can be borrowed on the annualised contract value. Each client is evaluated on the basis of their personal circumstances, generally, they can borrow a multiple of their annualised contract value.
However, they need to be in a contract at the time of the application and must be able to demonstrate continuity. A contractor applying with their first contract can get a mortgage as long as they have had continuity of employment before approaching the broker.
How long does the mortgage application process take?
This is where a contractor specialist financial adviser differs from most brokers. There is a two-stage process. The first stage is the pre-approval, and the second stage is the full application.
In stage one, the lender requests documents from the business owner, professional or contractor such as current and previously signed contracts, three months’ personal and business bank statements, ID and proof of address. The lender will also complete a hard credit search at the point of application. After reviewing all documents and credit score, the lender will approve or decline the application.
Stage two is the full application stage. If the application has been approved the valuation will then be instructed, and if the valuation is satisfactory, the mortgage will go to offer. In some examples, the mortgage loan amount may be reduced following an underwriting review or the mortgage can be declined. Your broker would then agree with you on how you wish to proceed.
I have a poor credit history – can you get me a mortgage?
Brokers do have options for contractors who have a poor credit history and need specialist contractor underwriting for their mortgage. They will need to present a relatively positive picture of the client’s current circumstances and as long as the credit issues are historic and there has not been an issue within the last two years, but can usually find an option.
There are lenders who don’t do credit scoring but just complete credit checks. Financial advisers like Broadbench, with unrestricted access to the market and who are not restricted to just a handful of lenders, should be able to find a solution. However, the contractor will pay a premium with an elevated interest rate as a result of their poor credit history.
If a contractor has any plans to buy a property or refinance it is important that they talk to a specialist contractor financial adviser as early as possible, even if their plans are 12 months away.
That way the broker can find out early if there are any challenges and we can overcome them in plenty of time for the contractor to secure their mortgage when they need it.
What evidence do you need of my contracting income?
It depends on the lender; however, most will ask for your current contract, your previous contract (if applicable), a contract extension (if you have less than 3 months remaining on your contract) and 3 months of business bank statements.
How do the lenders calculate my income?
The lenders take your day rate or hourly rate and times this by how many days/hours a week you work and times that by 46 or 48 weeks a year (lender dependent). This is then deemed your annual salary.