FAQs

Being a professional carries certain obligations and legal responsibilities. You have a financial responsibility to your client for errors that you make. Although claims are rare, they do happen, and the claims can be very high! Having insurance cover fully protects you and provides you with peace of mind.

This is exactly where we can help! Now you are self-employed, it’s important to ensure you, your business and your loved ones are protected in every eventuality. That could include Income Protection, Critical Illness Cover, Life Insurance, Private Healthcare and Pensions.

The majority of clients legally require you to have some level of Professional Indemnity Insurance, which supports your independent status. Office insurance provides expenses coverage to legally defend or pursue your rights, and Liability Insurance protects damage to both your own and your client’s property or equipment. Also, you should consider protecting your family through insurance; Life Insurance and, specifically, tax-efficient Relevant Life Insurance ensures your loved ones are financially protected in the event of your death. Alongside this is Critical Illness Insurance – protecting yourself and your family if you are ill and no longer able to work and earn.

It is advisable to consider all elements of insurance to protect you from a variety of risks within your market. If you employ any staff, you are required by law to have Employers’ Liability Insurance.

The only exemptions are limited companies where the owner is the sole employee and unincorporated family businesses where all employees are closely related. Professional Indemnity and Public Liability are often required by your customers under contract.

While protection and insurance products are personal, and everyone’s circumstances are different, there are a handful of core products that we see our clients taking out.  These include Life Insurance and, specifically, tax-efficient Relevant Life Insurance – which ensures your loved ones are financially protected in the event of your death. Alongside this is Critical Illness Insurance – protecting yourself and your family if you are ill and no longer able to work and earn. Finally, Indemnity Insurance protects your business against any claims made against you.

It’s important to note the value of working with an expert protection adviser firm like Broadbench. We’ll take the time to listen to who you are, and your unique circumstances before designing a protection package that protects exactly what you need it to.

Key Person Insurance is designed to offer a lump sum or regular monthly income cash injection into a business to mitigate any loss that would occur from either the death or long-term illness of anyone that contributes to the profit of a business.

Shareholder protection allows business owners to buy shares back from a co-shareholder who is diagnosed with a critical or terminal illness, or dies. This ensures that the deceased owner’s dependants have a willing buyer and cash instead of a share of the business.

Relevant Life Insurance is a product solely designed for limited company business directors or employees and allows you to expense your Life Insurance through your company, saving you money. Other options of cover, like Critical Illness, Private Healthcare and Income Protection, can be paid for through your company but could be seen as a benefit-in-kind / P11D.

Insurance plans are beneficial to anyone looking to protect their family, assets/ property, and themselves from financial risk/ losses: Insurance plans will help you pay for medical emergencies, hospitalisation, contraction of any illnesses and treatment, and medical care required in the future.

The insurance company collects the premium amount for multiple policyholders and invests the fund securely to accumulate over time and pay out the policyholder when they claim.

Firstly, we will listen to your specific needs and recommend the right type of insurance to cover your requirements. We will then provide you with the best-suited quotation. If you wish to go ahead with that policy the process takes between 1 to 8 weeks depending on the type of insurance and the complexity of your requirements.

If you are looking for a quick quote, you aren’t in the right place! The reason for that is that a ‘quick quote’ is rarely a good fit for what you need. A typical person takes a guesstimate at the amount of cover they need and is led primarily by the monthly premium, rather than ensuring that the policy actually solves the problem they need it to. An advisor is an expert in their field and works hard to understand who you are and your lifestyle so that the policies you take out truly protect you, and at a cost that suits your budget.

Not a problem. We see this as a long-term relationship and will review your circumstances at an appropriate time to assess if anything needs to be adjusted. More importantly, you should be talking to the same person you originally had a conversation with. We certainly aren’t a call centre and are proud of the bespoke and personal nature of our service.

It’s simply a business insuring itself against the financial loss it may suffer as a result of the death (or critical illness if chosen) of a key person.

A key person is an individual whose skill, knowledge, experience or leadership contributes to the continued financial success of the business. A key person may be anyone whose death could lead to a financial loss for the business. This might be a loss of profits if you lost your best salesperson, the cost of having to recruit or train a replacement or important personal or business contracts lost due to the key person not being there to maintain a contract.

For a business to insure one of its key people it must show that it stands to suffer a financial loss of profits as a result of the death, terminal or critical illness (if chosen) of that employee.

This is usually straightforward, and that individual is then regarded as a key person. The loss of a key person could lead to the business being unable to repay a loan, which could mean the lender calls in the loan early. This may have a serious effect on any existing loans or any future lending.

Usually, a limited company or a corporation with shareholders whose liability is limited by their shareholdings. Any personal assets are held separately from the finances and assets of the company.

As the company is the owner of the policy it would usually pay the premiums.

In the event of a valid claim, the policy proceeds would be payable to the company.

A partnership is a relationship which exists between persons carrying on a business in common with a view to profit. The partnership does not have a separate legal identity and each partner would be liable for any trade debts. It is the partners and not the partnership itself which will own any policy.

Yes, a partner could take out their own life policy and place it under trust for the other partners. In the event of a valid claim the policy proceeds would be payable to the trustees who would in turn pay the partners as beneficiaries of the trust. The partnership would usually pay the premiums.

It’s not a nice thing to think about, but if you’re a contractor and you pass away, how would your loved ones survive? This is where Life Insurance can provide the answer. It pays out a large one-off sum to help your family live after you’ve gone.

No. There’s no cash value at any time. At the end of your Life Insurance policy term, you stop making payments and your cover ends.

If you have an interest-only mortgage, your outstanding mortgage loan stays the same until you repay it at the end of the mortgage term. Level Life Insurance could cover this type of mortgage.

It provides your loved ones with a large tax-free, one-off payment, or monthly payments if you pass away. It can be used to pay the mortgage off or help your family with living expenses. Monthly payments are tax-deductible if you are a limited company – look at Relevant Life Insurance. You are covered only for the duration (term) of the policy and cover only lasts while you keep up monthly premiums. Monthly payments can be reduced by combining this with a Critical Illness policy.

If the unexpected happens, you’d want your family to be taken care of. You’d want the mortgage paid off and enough money for them to live. It’s important to get this right, which is why we work closely with you, making sure the cover fits your needs but is also affordable for you. The policies we recommend are handpicked for business owners, professionals and contractors, and we’ll cut through any jargon, so you know exactly where you stand.

If you choose level or decreasing cover, your monthly payments are guaranteed to stay the same for the duration of your policy.

For decreasing Life Insurance, premiums are set at the start of the policy to consider the decreasing amount of cover you’ll need during the policy term. Premiums for decreasing cover are often cheaper than other types of life insurance.

With level cover, if you choose to help protect your payments from the effects of inflation, so the lump sum won’t be worth less in the future, your monthly payments may rise.

With index-linked cover life insurance, your death benefit increases over the life of the policy. This type of insurance can provide extra protection as the years go by to cover growing expenses, like a new house or bigger family, or protect your death benefit from inflation. The advantage of increasing/ index linked cover term insurance is that you don’t have to predict inflation – the policy will do this for you, but at a cost. Also, your increases are automatic and won’t be hindered if your health changes.

If you have a mortgage, you might want to take out Life Insurance. Then, if you die before your policy ends, the lump sum can be used to help pay off the outstanding mortgage balance, so your family could stay in their home. Some lenders will ask you to take out Life Insurance as part of their mortgage offer.

No, you don’t have to take out decreasing Life Insurance to cover a mortgage. The reason for the policy depends on a few factors, such as what you want the lump sum to cover, and how much you want to pay each month. We will advise you on the different levels of cover to suit different needs, so you can choose which one is right for you and your family.

No one likes being ill but, when you’re a business owner, professional or contractor and your income relies on your ability to work, it’s vital you get back on your feet as soon as possible. A Private Healthcare plan means that you and your family can have access to the best health facilities, without the wait times, so you can protect yourselves from any health issues (and subsequent financial strain) that might come your way.

Private Healthcare plans are typically designed to cover acute medical conditions. This includes short-term illnesses, treatable diseases and injuries which, through care, you are likely to make a full recovery from. If you have an existing chronic condition, it’s likely that this will be excluded from any cover you take.

Unlike other forms of insurance, Private Healthcare tends to be viewed as optional. This is because we are fortunate to live in a country that offers an extensive National Health Service that will cover most treatments for free. However, due to long waiting lists and lack of choice, it could also benefit contractors to have Private Healthcare in place.

As a business owner, professional or contractor, if you can’t work, you can’t earn. With a Private Healthcare policy, you can rest assured that if you do have an illness or injury, you’ll be able to get back on your feet and back to work faster than usual.

Private Healthcare is designed to cover conditions that you may develop after taking out the policy. However, depending on the insurer, you may be able to cover pre-existing medical conditions. Keep in mind that this will have an impact on the cost of your premiums.

Getting help faster – Being seen quickly is one of the many reasons contractors consider Private Healthcare. If you’re unable to earn due to an illness or injury, Private Healthcare will get you back on your feet faster than regular NHS services. You may have access to better care as well as medication and treatments that are not yet available on the NHS.

Privacy and choice – By purchasing Private Healthcare you often have more choice and greater privacy. You may be able to choose a hospital or doctor and even request your own private room – this wouldn’t be available to you if you used the NHS.

There are many factors that can influence the cost of your premiums. Typically, your age, current health and medical history, but your job may also have an impact if it is seen as a risky profession. If you’re a smoker you may have higher premiums than non-smokers.

When looking to get a Private Healthcare policy, it’s important for you to understand what type of cover you require. Do you want comprehensive coverage (which will cover you for everything) or a policy that simply covers you for outpatient visits?

You may also need to consider what could be affecting the price of your premium. Getting the best possible cover won’t be the cheapest but you can’t put a price on your well-being when you’re a contractor. Therefore, it is best to speak to an adviser to find out the level of cover you need to suit you and your circumstances.

When it comes to things as important as protecting our health and finances, we believe that you should receive the best impartial advice. To set up a Private Healthcare policy, or if you have more questions and want to speak to an expert, get in touch.

Critical Illness cover (also known as Critical Illness Insurance) is a medium to long-term policy which covers you for a serious illness during the policy period so you don’t have to worry about your finances.

If you are diagnosed with a serious illness, a Critical Illness policy will pay out a tax-free, one-off payment (some insurers may offer monthly instalment options also). This can help you pay for your mortgage or rent, and any existing debts you may have or help you to make adjustments to your home, such as a wheelchair ramp if you need it.

When you work for yourself, you no longer receive the same benefits as regular employees. These benefits include payment to cover a long period off work due to sickness. The alternative to receiving ‘sick pay’ is to receive state benefits, however, this may not be enough to replace your income.

If you’re eligible, you may be able to receive Employment and Support Allowance (ESA) – which ranges from £70 to just over £100 a week, depending on your circumstances and the seriousness of your illness or disability. Will that be enough to cover your household bills and family’s lifestyle? If not, then you should consider Critical Illness cover.

Each insurer has its own list of critical illnesses that they cover. Typically, you’ll be insured for heart attacks, cancer (depending on the type and the stage), strokes and permanent disabilities due to an illness or injury. If you have a specific illness that you want to be covered for, get in touch with a Broadbench adviser who will be able to guide you to the right insurer.

There are a number of factors that can influence the cost of your monthly premium including:

• Your age
• The level of cover you wish to take out
• Whether you’re a smoker or have previously smoked
• Your current health, weight and family’s medical history
• Your job (some occupations carry higher levels of risk than other professions and therefore may increase the monthly premiums)

Firstly, to keep a roof over your family’s head. With Critical Illness Cover, you can rest assured that you will be able to keep up with mortgage repayments or even pay off the full remaining amount. You’ll receive a tax-free pay-out – If you are diagnosed with a Critical Illness, the money you and your family receive is tax-free. Lastly, it gives you peace of mind – No one knows what the future has in store but with Critical Illness Cover, you will be protected for a number of illnesses. This way you can rest assured that you and your family are financially secure.

You may be able to get small multiple payouts. Most policies will only pay out once, but some insurers will make a small payment if you are diagnosed with a less severe illness. In this case, your policy would continue, and you should be able to make a further claim down the line if you’re diagnosed with a more critical illness.

To claim on a Critical Illness policy, you must be diagnosed with a medical condition that meets one of the definitions on the policy. In contrast, to make a claim on an Income Protection policy simply relies upon you being unfit for work, no specific medical condition is needed – therefore the pay-out is to cover you until you’re fit to return to work.

When it comes to things as important as protecting our health or finances, we believe that you should receive the best advice. To set up a Critical Illness policy, or if you have more questions and want to speak to an expert, get in touch.

Indemnity Insurance protects your business against claims made by dissatisfied clients. It will cover your business for the cost of defending any allegations or claims for negligence or breach of duty or care for products or services it has provided. The level of cover you choose can be used to either pay damages awarded against you or cover defence costs (or both) and can in some circumstances be used to ‘fix’ a problem if it will avoid a larger claim being made.

These policies are available to UK businesses only.

Your Broadbench adviser will scour the whole market to find you the best insurance policy to suit your requirements. Broadbench is authorised and registered by the Financial Services Authority.

By direct debit, monthly, quarterly or annually.

The policies are continuous, which means they automatically renew. You will be sent a letter with your company details to check. You only need to send this back or contact us if your situation has changed, for example, if your turnover/day rate has increased.

You should notify the claims department of your insurer, you will find this contact info on the policy documents or their website.

We provide a policy summary for each cover when we provide you with your quote which is a plain English overview of the cover listing key benefits, exclusions, claims service information and how to cancel your policy. Some insurance providers will post out your policy documentation and T&Cs, while others make this available online – your Broadbench adviser will tell you how you’ll access your documentation.

You should speak to your broker to ensure that either cancelling or amending your cover is the right thing to do.

Income Protection is an insurance policy that pays you a regular wage if you’re unable to work due to illness or injury. It will continue to pay you a salary until you’re ready to return to work, retire or if you pass away (dependent on the level of benefit taken).

You are covered for most injuries or illnesses, unlike other protection policies. The criteria for a claim within an Income Protection policy is not based on the illness/injury itself but on whether it has stopped you from working.

No. This is a common misconception of Income Protection; it only covers you when you are unable to work due to illness or injury. It does not cover gaps in between employment. If you’re looking for unemployment payment, you will have to apply for JSA.

As a contractor, you can typically ensure between 50% – 80% of your salary and dividends.

Your age, health, line of work and if you have smoked in the last 12 months can have an impact on your monthly premium. Therefore, it’s important to speak to an Income Protection expert to get a rough idea of what cover you can expect and at what cost before applying.

When you work for yourself, you do not have the financial support of an employer. This means that if you fall ill and are unable to work for a period of time, you do not benefit from sick pay. If this happens, how will you meet your living costs? It’s important to have an Income Protection policy in place so you can meet your living costs (mortgage, bills, food, lifestyle etc) in the unfortunate circumstance of illness or injury.

The deferred period is the time between you being unable to work and your payouts beginning. Typically, the longer the deferred period the lower your monthly premiums. To work out the length of your deferred period, you should consider how much you need per month to cover your bills and day-to-day living costs and offset this against your savings. From this, you can work out how long your savings will keep you afloat before you’ll need the financial support a policy delivers.

If your new contract pays more or less than the previous contract (or the contract you were on when you started the policy), you can contact your insurer to increase or decrease the amount of coverage you need.

It’s not a nice thing to think about, but if you’re a contractor and you pass away, how would your loved ones survive? This is where Relevant Life Insurance can provide the answer. It pays out a large one-off sum to help your family live after you’ve gone. Plus, a Relevant Life policy offers some very special advantages to limited company business owners and contractors looking for life cover. The headline benefit is tax efficiency.

While the life cover is personal to you, the policy counts as a legitimate business expense, so it is tax deductible. Learn more about how a Relevant Life Policy could be suitable for you by contacting us.

You must have a limited company to benefit from the tax savings that a relevant life insurance policy offers. If you do not have a limited company then standard Life Insurance will offer you the protection you need.

No. There’s no cash value at any time. Just like standard Life Insurance at the end of your Relevant Life Insurance policy term you stop making payments and your cover ends.

If you have an interest-only mortgage, your outstanding mortgage loan stays the same until you repay it at the end of the mortgage term. Level Relevant Life Insurance could cover this type of mortgage.

Like standard Life Insurance, it provides your loved ones with a large tax-free, one-off payment, or monthly payments if you pass away. It can be used to pay the mortgage off or help your family with living expenses. You are covered only for the duration (term) of the policy and cover only lasts while you keep up monthly premiums. Monthly payments can be reduced by combining this with a Critical Illness policy.

The key difference between Life Insurance and Relevant Life Insurance is that with Relevant Life Insurance the cost of the premiums is moved from your own pocket to your company expenses. This saves you tax and reduces the cost of your monthly premiums.

Additionally, this is not treated as a benefit-in-kind; the premium is not included as a P11D benefit, nor are premiums subject to National Insurance payments for the employer or employee.

There is significant tax relief with a Relevant Life plan and your business can claim Corporation Tax Relief on the premiums. Plus, the payout itself is tax-free.

If the unexpected happens, you’d want your family to be taken care of. You’d want the mortgage paid off and enough money for them to live. It’s important to get this right, which is why we work closely with you, making sure the cover fits your needs but is also affordable for you. The policies we recommend are handpicked for contractors, and we’ll cut through any jargon, so you know exactly where you stand.

If you choose level or decreasing cover, your monthly payments are guaranteed to stay the same for the duration of your policy. For decreasing Relevant Life Insurance, premiums are set at the start of the policy to consider the decreasing amount of cover you’ll need during the policy term. Premiums for decreasing cover are often cheaper than other types of life insurance.

With level cover, if you choose to help protect your payments from the effects of inflation, so the lump sum won’t be worth less in the future, your monthly payments may rise. The maximum annual increase would be 15% to your premiums and 10% to your cover.

You should notify the claims department of your insurer, you will find this contact info on the policy documents or their website.

A Buy to Let mortgage is where you buy another property specifically as an investment with the intention of letting it out.

Normally a minimum of 25% deposit.

Not for your main residence, but if you have investment properties that were bought on a Buy to Let basis, these will be subject to Capital Gains Tax. Other taxes may also be levied, we recommend you speak with an accountant to establish your tax position.

Yes. Of course, there are factors that impact a contractor’s eligibility, but just by being self-employed, you should not expect to be turned down by a lender as long as they understand contractors and contracting. However, factors that would prevent anyone from securing a mortgage, such as a poor credit history or a bad payment record will apply just as much. to contractors as to employees.

Yes! As long as we can see you’ve got a history in the same line of work and in the same industry in which you are now contracting, there are lenders who accept new contractors.

A typical journey will look like this:

1. Welcome Call
   This is an introductory meeting. You’ll meet your Broadbench adviser: they’ll explain our services, our regulatory status and establish a basic understanding of your requirements.
2. Fact-find
   Your adviser will send you a fact-find document for you to complete. Once received, your adviser will schedule a Discovery Call.
3. Discovery and Recommendation Call
   We’ll confirm the details supplied in the fact-find, and discuss your mortgage options:  fixed/tracker, term, fees, and your budget. Your adviser will also advise you about life insurance products to protect the mortgage and your family’s lifestyle.Your adviser completes your mortgage recommendation and the KFI (Key Features Illustration) and then will advise you on the AIP process. You’ll both agree what are the next steps: house hunting or booking your mortgage.
4. AIP (Agreement In Principle)
   Your adviser will send you an invoice of £100 to create the AIP.  Once payment is received the AIP can be booked.
5. Documentation
   Then adviser will send you a checklist of all the documentation you need to supply to us. You’ll then be invoiced for the remaining £400.
6. Mortgage Offer
   Once all documents are received, we’ll certify that your mortgage is ready to be booked. Your adviser then books your mortgage. Once the mortgage offer is received, we’ll liaise with the lender on your behalf.
7. Mortgage Review
   You let us know your exchange and completion dates.
8. Mortgage Completion
   We’ll let you know as soon as your mortgage completes and then schedule regular reviews during the mortgage term to ensure that the product remains the most suitable for you.

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.

If you’re currently on a fixed rate mortgage, it means for a period of time (typically between 2-5 years) the interest you pay and the monthly repayment will be fixed. Once your fixed mortgage deal comes to an end, you will be placed on the ‘Standard Variable Rate’ (SVR). Each lender sets their own SVR and it tends not to be as competitive as fixed-rate mortgages.

You will still be able to get a mortgage however, your existing lender might not be able to understand your income now you’re contracting. It’s important to speak to a specialist contractor mortgage adviser who works with the whole of market and will find a lender that can understand your income and make sure you’re getting the best mortgage product available.

It’s important to speak to a specialist mortgage adviser who works with the whole of market.

If you’re switching to a new lender, the documents you need to provide will be similar to when you applied for the first mortgage. This will include details of your current and previous contract (if applicable), 3 months’ bank statements and if you have less than 3 months remaining on your contract, they will require a contract extension.

There are some fees to be aware of when remortgaging, for example, some lenders have upfront product fees that can be added to the loan, usually about £1000. Lenders do offer a free legal and valuation service to help you switch. If you’re not sure whether you’d want to pay a product fee, a mortgage specialist can help you look through the options.

A great benefit of remortgaging is that it gives you an opportunity to borrow more money. This can be used to make home improvements such as building an extension or refurbishing the kitchen or bathroom. Make sure you speak to an expert mortgage adviser to help assess how much you can borrow based on your day rate.

This is where we can help. Scouring the market for the best mortgage product can be a long and difficult process and, unless you have the right expertise, you may not end up with the best deal for you. Our specialist mortgage advisers do all the leg work, working with contractor-friendly lenders, so you don’t have to. Speak to your Broadbench adviser and see how much you could save on your remortgage.

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.

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.

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.

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.

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.

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.

From crime to community, amenities to areas of green space. Good questions to ask include:  where is the nearest supermarket or is the corner shop within walking distance or will you have to drive? Where’s the closest bus stop or train station? How are the local schools rated by Ofsted?

The main things that dictate how much a person or couple can borrow is income and current credit commitments.  All lenders have different ways to calculate what someone can borrow.

You will need a minimum of a 5% deposit.  The more deposit you put in, the better the interest rates will be.  For example, if you put in a 15% deposit this will get you a better interest rate than a 10% deposit.

A repayment mortgage is guaranteed to pay off your mortgage by the end of the term as long as all payments have been made.

An interest-only mortgage is where your monthly payments are only covering the cost of the interest and your loan amount will remain the same.  At the end of the term, you would either need to sell the property to repay the mortgage or find another source to repay the loan.

As a minimum, the building itself needs to be insured.  We would usually recommend that you also insure the contents within your home too.  Other insurances we recommend are Life Insurance to repay the mortgage debt if someone passes away and Income Protection insurance which provides you with an income should you be unable to work due to sickness or accident.

Yes. You can “remortgage” to another lender to take advantage of their better interest rates.  As part of our service, we will contact you as you approach the final few months of your existing mortgage deal to provide you with details of the options available to you.

Yes. Of course, there are factors that impact a contractor’s eligibility, but just by being self-employed, you should not expect to be turned down by a lender as long as they understand contractors and contracting. However, factors that would prevent anyone from securing a mortgage, such as a poor credit history or a bad payment record will apply just as much. to contractors as to employees.

Remortgaging is the process of switching your existing mortgage product to a new mortgage product, either with your existing lender or a new lender.

If you’re currently on a fixed rate mortgage, it means for a period of time (typically between 2-5 years) the interest you pay and the monthly repayment will be fixed. Once your fixed mortgage deal comes to an end, you will be placed on the ‘Standard Variable Rate’ (SVR). Each lender sets their own SVR and it tends not to be as competitive as fixed-rate mortgages.

Those earning a day rate will still be able to get a mortgage however, your existing lender might not be able to understand your income now you’re contracting. It’s important to speak to a specialist mortgage adviser who works with the whole of market and will find a lender that can understand your income and make sure you’re getting the best mortgage product available.

It’s important to speak to a specialist mortgage adviser who works with the whole of market.

If you’re switching to a new lender, the documents you need to provide will be similar to when you applied for the first mortgage. This will include details of your current and previous contract (if applicable), 3 months’ bank statements and if you have less than 3 months remaining on your contract, they will require a contract extension.

There are some fees to be aware of when remortgaging, for example, some lenders have upfront product fees that can be added to the loan, usually about £1000. Lenders do offer a free legal and valuation service to help you switch. If you’re not sure whether you’d want to pay a product fee, a mortgage specialist can help you look through the options.

A great benefit of remortgaging is that it gives you an opportunity to borrow more money. This can be used to make home improvements such as building an extension or refurbishing the kitchen or bathroom. Make sure you speak to an expert mortgage adviser to help assess how much you can borrow based on your day rate.

This is where we can help. Scouring the market for the best mortgage product can be a long and difficult process and, unless you have the right expertise, you may not end up with the best deal for you. Our specialist contractor mortgage advisers do all the leg work, working with day rate friendly lenders, so you don’t have to. Speak to your Broadbench adviser and see how much you could save on your remortgage.

Yes. Of course, there are factors that impact a contractor’s eligibility, but just by being self-employed, you should not expect to be turned down by a lender as long as they understand contractors and contracting. However, factors that would prevent anyone from securing a mortgage, such as a poor credit history or a bad payment record will apply just as much to contractors as to employees.

Yes! As long as we can see you’ve got a history in the same line of work and in the same industry in which you are now contracting, there are lenders who accept new contractors.

A typical journey will look like this:

1. Welcome Call
   This is an introductory meeting. You’ll meet your Broadbench adviser: they’ll explain our services, our regulatory status and establish a basic understanding of your requirements.
2. Fact-find
   Your adviser will send you a fact-find document for you to complete. Once received, your adviser will schedule a Discovery Call.
3. Discovery and Recommendation Call
   We’ll confirm the details supplied in the fact-find, and discuss your mortgage options:  fixed/tracker, term, fees, and your budget. Your adviser will also advise you about life insurance products to protect the mortgage and your family’s lifestyle.Your adviser completes your mortgage recommendation and the KFI (Key Features Illustration) and then will advise you on the AIP process. You’ll both agree what are the next steps: house hunting or booking your mortgage.
4. AIP (Agreement In Principle)
   Your adviser will send you an invoice of £100 to create the AIP.  Once payment is received the AIP can be booked.
5. Documentation
   Then adviser will send you a checklist of all the documentation you need to supply to us. You’ll then be invoiced for the remaining £400.
6. Mortgage Offer
   Once all documents are received, we’ll certify that your mortgage is ready to be booked. Your adviser then books your mortgage. Once the mortgage offer is received, we’ll liaise with the lender on your behalf.
7. Mortgage Review
   You let us know your exchange and completion dates.
8. Mortgage Completion
   We’ll let you know as soon as your mortgage completes and then schedule regular reviews during the mortgage term to ensure that the product remains the most suitable for you.

There are high-street lenders that accept those outside of PAYE, the problem is that a lot of brokers don’t necessarily know how to package contractor applications correctly! That’s where a specialist adviser comes into play.

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, professional 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, and they use the contract to define a contractor’s income.

Whereas that might have been the case several decades ago, this is certainly no longer true.

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.

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.

The main things that dictate how much a person or couple can borrow is income and current credit commitments.  All lenders have different ways to calculate what someone can borrow.

You will need a minimum of a 5% deposit.  The more deposit you put in, the better the interest rates will be.  For example, if you put in a 15% deposit this will get you a better interest rate than a 10% deposit.

This will vary depending on the loan amount, the term of the mortgage and the interest rate.

A repayment mortgage is guaranteed to pay off your mortgage by the end of the term as long as all payments have been made.

An interest-only mortgage is where your monthly payments are only covering the cost of the interest and your loan amount will remain the same.  At the end of the term, you would either need to sell the property to repay the mortgage or find another source to repay the loan.

As a minimum, the building itself needs to be insured.  We would usually recommend that you also insure the contents within your home too.  Other insurances we recommend are life insurance to repay the mortgage debt if someone passes away and income protection insurance which provides you with an income should you be unable to work due to sickness or accident.

Yes.  You can “remortgage” to another lender to take advantage of their better interest rates.  As part of our service, we will contact you as you approach the final few months of your existing mortgage deal to provide you with details of the options available to you.

There are various costs associated with buying a property which we’ve detailed below:

• Stamp Duty Land Tax (SDLT): currently first-time buyers are not required to pay SDLT.  Current percentages payable can be found here.
• Solicitor’s fees: These are based on the purchase price.  Typically, First Time Buyers will pay £1000-£2000.
• Valuation fees: For most lenders, these are also based on the purchase price.  Many lenders offer free valuations, especially for first-time buyers and remortgages.
• Lender’s arrangement fees: These can usually be either added to the mortgage or paid upfront and average at about £999.00.
• Mortgage broker fees: We charge competitive broker fees to our clients of £100 for an agreement in principle and £400 on application.

Yes, however, you could have early repayment charges to pay if you have only had your mortgage product for a short amount of time.

Buying a home is the biggest financial decision most of us make, so it’s important to go slow and ask the right questions when looking around a property. Small mistakes can have a large price.

There’s nothing worse than trying to leave for work in the morning and not being able to get out of the driveway because of the road traffic. If you have time, check out what the area around the house is like around rush hour. Even if the house isn’t directly on a main road, it could be used as a shortcut or where people park to get to work or school.

These people could be the faces you see every day for the next few years. It’s important to have a good idea of what they are like and how the current homeowners have got on with them. Obviously, everyone is different, but having a sense of who shares your fence is not a bad idea. Are they having any work done to their home? Are they typically noisy? Can you trust them to sign for missed deliveries?

From crime to community, amenities to areas of green space. Good questions to ask include:  where is the nearest supermarket or is the corner shop within walking distance or will you have to drive? Where’s the closest bus stop or train station? How are the local schools rated by Ofsted?

The attic is often ignored when it comes to viewing a house, so make sure you don’t miss it off your list when you look around or ask questions. Things to consider when it comes to the attic include how much storage space is available, whether there is a possibility to convert it into another bedroom, is there insulation. The latter can make a big difference to your heating bills.

Replacing a roof is an expensive task and could cost you £5,000+. Though most new roofs have a life expectancy of 20-25 years, it depends on what materials have been used. Because of this, make sure you speak to the estate agent or surveyor about the structure of the roof – you could face a big cost if it isn’t in good condition and needs work.

Have you ever wondered why your home is unusually cold in the winter and scorching hot in the summer? It’s due to the direction of the house. It may seem silly, but the direction of a house can impact the feel of a home, so if you value a BBQ in the summer, it may be in your interest to find a home with a south-facing garden so you can best enjoy the sunshine.

Buying a house is one thing but the cost of living in it could be a deal breaker. Get an idea of how much this monthly cost could be and whether you will be able to afford it in addition to your monthly mortgage payments and other regular outgoings. Helpfully, some property search sites do highlight the average energy and water costs – so make sure you use this in addition to asking the estate agent or current owner.