The appeal of the Capital to UK contractors
As the world’s leading financial centre for international business and commerce and one of the “command centres” for the global economy, London offers a wealth of opportunity for IT contractors. Over half of the UK’s top 100 listed companies (the FTSE 100) and more than 100 of Europe’s 500 largest companies have their headquarters in London. These companies readily use IT contractors rather than employing all of their staff on a permanent basis, keeping demand for contractors high. This makes it understandable as to why so many IT contractors choose to be in London if it means securing themselves one of these sought-after, high profile contracts.
Opportunities for construction and engineering contractors, are also plentiful in London, particularly in the last decade or so with the construction of the O2 arena, the rebuild of Wembley stadium and London hosting the Olympic Games in 2012 to name but a few.
The fly in the ointment
However, although London may be attractive in terms of the volume and quality of the contracts on offer, it is somewhat less attractive when it comes to house prices, with the average house price now having surpassed the half a million pound mark. If you have chosen to contract and buy a home in this prime location, making potential mortgage lenders appreciate and take into account the full value of your earnings, and then obtaining the maximum multiplication of that amount for your mortgage will be of paramount importance.
Here at Contractor Financials, however, we understand that whatever industry you are in and whether you are operating through your own limited company or are working through an umbrella company, applying for a mortgage as a contractor can prove to be difficult. As a director of your own limited company, your accounts won’t reflect your full income and as a consultant/freelancer using an umbrella company, the payslips you do have may raise more questions than they answer when it comes to proving affordability for a mortgage.
Furthermore, the underwriter that looks at your mortgage at a branch of a high street bank or within a mortgage call centre is unlikely to have an understanding of just how high the demand is in London for contractors in your field. Even if they were aware, it wouldn't be a factor that they would have been instructed to take into account when underwriting your mortgage application.
The key to Contractor Mortgages
Don’t panic, help is at hand. We can and do secure “High Street” mortgages for London contractors and achieve very similar salary multiplications to your permanently employed counterparts.
The demand for contractors in London outstrips supply in most fields. All you require is an underwriter that understands the demand for your skills and has the authority to take these factors into account when making the decision on your mortgage application.
We call upon the expertise and contacts we have accumulated over more than a decade of specialising in mortgages for the contracting market. We ensure that your application is put in front of the key mortgage underwriters within the lending institutions who understand the London contract market, your unique employment status as a London contractor and the fact that the demand for your skills is ever increasing. This approach enables us to side step the branch network of the mortgage providers and thus remove many of the challenges that contractors face when dealing with financial institutions.