Contrary to what you might have heard, if you work as a contractor, there is light at the end of the mortgage tunnel. If you work full time and can prove your income, getting a mortgage should not be difficult. Proving your income as a contractor is straightforward as long as you’re playing by the rules when it comes to declaring income.
Proof of Income
Some lenders treat contractors as employees, whilst others classify contractors as self-employed. Regardless of this, if you are declaring your income and paying taxes, proof of income should be a doddle.
These are the documents you’ll need as a contractor for proof of income; your latest employment contract showing your day rate and your tax year computations (SA302) and tax year overviews for the last two years.
Accessing this information is easy if you’re one of the many who submits their tax self-assessment online. Your tax computations and overviews are available online via HMRC, where you can download copies to be sent directly to Habito.
Self Employed Mortgages
There is confusion surrounding mortgages for those self-employed. Contract work can be highly lucrative, and steady in terms of work opportunities. As of 2016, there are 4.6 million people self-employed, and this number continues to grow. This is a valuable group of people to mortgage lenders, and they’re more than willing to lend as long as you can prove you are not a high-risk investment.
If you fit into this category of a contractor, we want to help you find a mortgage. The first step is heading over to our Digital Mortgage Adviser. Within a few minutes you can have a mortgage illustration, showing what you can expect to borrow and what your monthly payments would look like.
The next step is speaking to a member of our mortgage expert team. They’re here to answer any questions you might have, and guide you through your application. You can speak to them either by live online chat or by phone. They’re a friendly bunch, so don’t hesitate! Get in contact now, and see if you can find mortgage bliss.