Contractor Self Certified Mortgages

Back in 2009 the Financial Conduct Authority (FCA) 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, freelancers and 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 mortgage funding for new properties 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 some way be due to the huge demand and move to contracting for so many people plus the higher daily rates independent professional often earn compared to their permanently employed colleagues.

SJD recommends specialist mortgage company CMME, who can help you secure mortgage borrowing with high street lenders taking the whole of your contract earnings into consideration.

Click here to use our Contractor Mortgage Assessor and see how much you could borrow.

Andy McBride, 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 FCA 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”.

 

You may also find our other contractor mortgage guides and calculators helpful:

If you are looking to take that first step on the ladder, or to remortgage an existing property, then CMME 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, call 01489 555080, email CMME on sjd@cmme.co.uk or fill out the below form:

SJD are not authorised to offer regulated mortgage advice. SJD are introducers to CMME.
Your home may be repossessed if you do not keep up repayments on your mortgage.
CMME is a trading name of CMME Mortgages and Protection Limited. Authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 04886692. Registered Office: Albany House, 5 Omega Park, Alton, Hampshire, GU34 2QE. Please be aware that Commercial Mortgages, Overseas Mortgages and some Buy To Let Mortgages are not regulated by the Financial Conduct Authority. Calls may be recorded for training and security purposes and to improve the quality of our services.

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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 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Money back service guarantee. All your Emails received by 4pm on any normal working day will be answered the same day. Should it be necessary to leave a telephone message it will be answered same day/following day latest or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new business team on 01442 275789 or email: newbusiness@sjdaccountancy.com. Our new business team is open Monday to Thursday (8am to 8pm), Friday (8am to 7pm) and Saturday (10am to 4pm)

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.