Subcontractor Mortgage
Advice
08000 306705
Subcontractor Mortgage Advice
08000 306705

There seems to be quite a bit of confusion when it comes to contractor mortgages. Some people are convinced that you will have to pay a higher down payment than other people, and other clients have heard that contractors will have a higher interest rate because they are considered a high risk mortgage. All of this information is simply not true.


High risk mortgage

Every contractor will not automatically be considered a high risk mortgage. Most individuals that are under this assumption have either heard this form someone else, or they have been to a bank that told them that they were considered a high risk mortgage because they are a contractor.

Many banks do place applicant into certain categories, but companies like CIS Mortgages are not banks, and they do not single out contractors and place them in specific categories like banks do.


Higher interest rate

Contractors are often under the assumption that they will have to pay a higher interest rate than other people simply because they are a contractor. This is not true either. This belief also comes from the banks.

When a bank places a person in the high risk category, they often do have to pay a higher interest rate. Because contractors are automatically placed in this category, they often do have a higher interest rate, but this only applies at banks that have a high risk category.

Mortgage companies that work with several different lenders are usually more experienced in working with clients that would like a self-employed mortgage. They are not placed in the high risk category, so they do not wind up paying a higher interest.


Higher down payment

Banks may do this, but most mortgage companies do not. The down payment is based on how much the mortgage is for. Applicants are required to pay a certain percentage as a down payment, regardless of whether they are a contractor or not.

Some companies may think that a contractor is less likely to pay back their mortgage, and require them to pay a larger down payment, but this is often the exception and not the rule. Companies with experience in this area, such as CIS Mortgages, work with contractors to make sure that they have to pay the same down payment as everyone else. Contractors work every day like everyone else, and they should be able to own their own home like everyone else.

These common myths about contractor mortgages may apply at some companies, and they are often seen when applicants go to banks, but they do not apply at mortgage companies that specialise in contractor mortgages. Instead, these companies go above and beyond to make sure that every applicant gets treated fairly instead of discriminating against individuals that are contractors.

If you are tired of being turned down by banks or being told that you have to pay a higher interest rate because you are considered “high risk”, contact the experts at CIS Mortgages to learn how we can help you get the mortgage that you want.

Your home may be repossessed if you do not keep up repayments on your mortgage
Opening Hours
MON
09.00 - 5.00PM
TUES
09.00 - 5.00PM
WED
09.00 - 5.00PM
THU
09.00 - 5.00PM
FRI
09.00 - 5.00PM
SAT & SUN
CLOSED
Contact Us
The internet is not a secure medium and the privacy of your data cannot be guaranteed. Please tick the methods of communication you would be happy to receive:
    
    
    
To comply with data protection regulations (2018), we are unable to store and use your information unless you give us your permission. Please select Yes to allow this. View our data protection policy for details
The information on this website is for use of residents of the United Kingdom only subject to UK regulatory regime. No representations are made as to whether the information is applicable in any other country which may have access to it.
CIS Mortgage Advice is a trade name of Just Mortgages Direct Ltd which is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority
Just Mortgages Direct Limited Registered Office: Colwyn House, Sheepen Place, Colchester, Essex, C03 3LD. Registered in England No. 2412345

Website by Inspire Web Development