This question was answered by our specialist mortgage broker partner, Professional Contractor Mortgages (PCM).
Question submission date: September 2021
Full Question: “I’ve been a contractor for 5 years and am looking to get a mortgage on a new house. Why should I use a specialist broker instead of speaking to my normal banking provider?”
As a contractor, your hourly rate is more than the equivalent of a permanent employee doing a similar job. That is largely down to the added expertise that you bring to the table, with a varied
and notable work history across various projects. Even amongst contractors, there will be people doing the same type of role on a lower rate than you. No two contractors are the same. In the same way, not all mortgage brokers are the same.
There are many brokers out there who through no fault of their own, would likely result in a declined application for a contractor, often because they haven’t encountered your method of working previously, and don’t understand the difference between assessing you as self-employed, and assessing you as a contractor.
At Professional Contractor Mortgages, we have a bespoke process built around getting you the right mortgage for your individual circumstances. Whether you are looking to purchase or to remortgage, and whether it is for residential or investment property, we will ensure that you are only recommended products from lenders who will assess you fairly.
In such a volatile housing market as we currently have, an application to the wrong lender can not only cause added stress and delays, but can often mean that you miss out on a property, as the demand for houses has never been higher, and in reality a seller is unlikely to wait for you to start the application process again.
Couple this with the mortgage process being a complex and jargon-heavy one, being left alone to navigate the choppy waters of the mortgage world can often feel like you are treading water, not knowing which way to turn, until such time as you’re turned away and that sinking feeling returns.
At Professional Contractor Mortgages, we know the issues you face and we also appreciate the potential consequences of things going wrong. A mortgage is likely the largest financial commitment that you will ever take on, so why wouldn’t you ensure everything is ship-shape, by seeking professional, specialist advice?
The old saying of ‘buy cheap, buy twice’ is never truer than in the mortgage world. Fee-free brokers are largely a thing of the past, and because of the margins involved, they tend to be high volume, ‘vanilla’ brokers, i.e. dealing with applications that have no issues or those that require no human intervention.
You use a specialist for advice around your Limited Company. You are the specialist that your clients come to for your professional advice, so why would you not do the same for the largest financial burden that you will likely ever be under?
Answer written by Professional Contractor Mortgages.