Contractor Self Certified Mortgages
Back in 2009 the Financial Services Authority (FSA) put an end to self-certification mortgages in an attempt to ensure that all borrowers prove their ability to repay in advance.
Self-certification mortgages were originally aimed at the self-employed and freelance/contract workers who had trouble proving their income and in many cases became the mortgage of choice for contractors on irregular income who struggled to secure mortgage borrowing with their bank.
However, with the removal of these specialist mortgages many contractors worried it might be difficult to secure new lending or even refinancing with their own mortgage providers. We are very happy to announce that this needn't be the case as many lenders are happy to lend to contractors who have had a contract for as little as six months.
This new flexible approach must in someway be due to the huge demand and move to contracting for so many people plus the higher daily rates contractors often earn compared to their permanently employed colleagues.
SJD recommends specialist mortgage company Contractor Mortgages Made Easy (CMME) who can help you secure mortgage borrowing with high street lenders taking the whole of your earnings into consideration.
Click here to use our Contractor Mortgage Assessor and see how much you could borrow based on your contract rate.
Taj Kang, Associate Director at CMME commented “The fact that so many self-certified mortgages were granted to employed workers who could prove their income, and the high level of arrears associated with these type of loans shows that self-certification mortgages were being abused by both individuals and brokers. At CMME, we wouldn’t advise a professional Contractor or Freelancer to go down the self-certification route, if you approach a specialist contractor mortgage broker then they should be able to secure you a competitive mortgage that is based upon appropriate evidence of income.”
“It is the opinion of CMME that the FSA are correct to tighten up lending criteria, as any Contractor or Freelancer that can adequately afford a mortgage should have no need to go down the more expensive self-certification route to secure borrowing”.
If you are looking to take that first step on the ladder, or to remortgage an existing property, then Contractor Mortgages Made Easy will help you find a solution to suit your needs. Whether you want to find out the best rates available or help calculating how much you can borrow based on your contract rate alone, call 0844 44 88 800 or email CMME on: sjd@contractormortgagesuk.com.
You may also find our other contractor mortgage guides and calculators helpful:
Contractor Mortgage Assessor
Contractor Mortgage Calculator
Contractor Mortgage Guide Myths and Facts
Top five tips on getting a Contractor Mortgage
Contractor Mortgages
SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 11,000 clients.
We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.
Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, e-mail or meet your own dedicated accountant face to face.
Money back service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns. All this for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market.
If you have any questions about contracting or would like any further advice please either contact your SJD Accountant or call our new client services helpdesk on 0500 152500 / 01442 275789 or email: nikki.hanlon@sjdaccountancy.com.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
Contractor FAQ - All your frequently asked questions and their answers
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Choosing an accountant - For a full review
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Guide to Contracting - All the best guides to contracting in one place
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
