Essential Guide to Home Mover Mortgages for Contractors

Home Mover Mortgages for Contractors: Your Essential Guide

If you’re a contractor looking to move to a new home, understanding how home mover mortgages work and what options are available to you is essential. Contractors often face unique challenges when it comes to securing a mortgage due to fluctuating income and self-employed status. However, with the right advice and preparation, you can secure a home mover mortgage that works for your specific situation.

In this guide, we’ll walk you through everything you need to know about home mover mortgages for contractors, helping you navigate the process and secure the best deal for your next property move.

What is a Home Mover Mortgage?

A home mover mortgage is a mortgage designed to help you move from one property to another. This type of mortgage is ideal if you’re either upsizing or downsizing and already have an existing mortgage. If your current mortgage deal is portable, you may have the option to transfer it to your new property.

For contractors, obtaining a home mover mortgage can present some challenges, as lenders often view self-employed individuals as higher risk. However, with the right guidance, these challenges can be managed. Mortgage brokers who specialise in contractor mortgages can assess whether porting your existing mortgage deal is a viable option, which could allow you to keep your current mortgage terms and interest rates.

How Much Can You Borrow as a Contractor?

When applying for a home mover mortgage, the amount you can borrow will depend on various factors, including your income, credit score, and overall financial stability. Because contractors typically have variable income, mortgage lenders may be more cautious when assessing your eligibility.

Unlike the old days, when lenders simply multiplied your income by a fixed number, they now take a more holistic approach. Lenders may consider your rental income, credit profile, and other factors that can help them make a more accurate assessment of how much you can borrow.

Many mortgage brokers provide online mortgage calculators to help estimate how much you could borrow based on your specific financial circumstances. Knowing this information early on can help you plan your home move and give you a clearer understanding of your budget.

Best Practices for Securing Your Home Mover Mortgage

Contractors can face difficulties securing home mover mortgages because lenders may not always consider all income sources. For example, if you work through an umbrella company or have retained profits within your limited company, these factors may not be fully accounted for by some lenders.

To improve your chances of securing the best deal, follow these best practices when applying for a home mover mortgage:

1. Provide full documentation of your income: This includes your contracts, payslips, and bank statements to give the lender a clear picture of your earnings.

2. Clarify your self-employment status: Be prepared to explain how you work, whether through an umbrella company, your own limited company, or as a sole trader.

3. Consult a mortgage broker for contractors: A specialist broker understands the nuances of self-employed income and can help you find the best mortgage deal suited to your needs.

By following these steps, you’ll increase your chances of securing the right home mover mortgage for your situation.

Get Expert Mortgage Advice

At Mortgage-Tek, we specialise in helping contractors secure the best home mover mortgage deals. Our team understands the challenges contractors face when applying for mortgages and can offer expert advice tailored to your financial situation. Contact us today to learn how we can help you navigate the mortgage process and find the right deal for your home move.

Conclusion
Securing a home mover mortgage as a contractor may require a bit more effort, but with the right preparation and advice, it’s entirely possible. By understanding the process and working with experts like Mortgage-Tek, you can confidently move into your next home without unnecessary financial stress.