Finding a mortgage with a poor credit history is difficult and has to be approached very carefully because of the shortage of lenders available in this market. Having the advice of a qualified Poor Credit Mortgage Broker will greatly enhance your chances. With only a few sub prime lenders to choose from, getting it right first time is very important.
Steven Neale – Specialist Bad Credit Mortgage Broker
Our experience as first time buyers was simply exceptional! We have been guided through the mortgage process and buying our first home has been an easy journey thanks to your professionalism and efficiency.
13th Jan 2022
After thinking I was going to lose the new home I had fallen in love with, Steven worked hard with me and understood my circumstances. I was at the point of nearly giving up and within 4 weeks I had a full mortgage offer. Thank you for making my dreams come true. I would highly recommend your services. Absolutely no bull or jargon.
10th Jan 2022
The service we have received has been amazing. We were kept up to date every step of the way. Honestly, the relief on my face when I received your email with the mortgage offer was priceless. I can not thank you both enough you are both amazing at what you do. We can not thank you enough for everything, Thank you so much, you have made our dreams a reality.
4th Nov 2021
Thank you foremost for choosing to specialise in adverse credit services for people. All we read online is that it is not possible or easy to get any form of credit when you have or settle an IVA and I’m so glad I kept looking and found you. You have helped us more than you’ll ever realise. We are so happy to have a chance to start again and be able to remain on the property ladder, all thanks to you.
1st Nov 2021
SN Mortgages gave me a chance when no other brokers would. They listened and empathised with my situation. Advised me accordingly and supported me throughout my journey. Highly recommend.
11th Oct 2021
Steven & Sue have been absolutely amazing through the whole process – extremely calm, organised and helpful. We will definitely be using them in the future and would highly recommend them to family & friends.
20th Sept 2021
Steve and Sue have been absolutely amazing. I was really worried about my financial history meaning I wouldn’t be able to get a mortgage but they were nothing but supportive and non-judgemental, always available to explain things and answer questions as well as extremely efficient.
18th Jan 2022
Steve and Sue were very professional and provided an excellent service. Great communication throughout keeping you up to date at all times. Overall a smooth process, would highly recommend.
24th Aug 2021
Struggling to ‘get back’ on the housing ladder after 15 years and being ‘self-employed’ was proving near enough impossible, until we found Steve & Sue. They found us a lender that would use my ‘day-rate’ rather than the usual ‘self-assessment’ and even though there was stumbling blocks along the way, they get us over the line with a ‘mortgage offer’! We can’t thank them enough and would definitely have no hesitation in using them again!
28th July 2021
A fantastic service provided by SN Mortgages once again. Highly recommend SN Mortgages, they have been brilliant at finding the best rates for us, keeping in regular communication and quite frankly achieving the impossible! Where other brokers fail to come back to us or could not find a deal, SN would always go the extra mile and revert back. Thank you so much!
22nd July 2021
We are so grateful to Sue and Steve for all their effort in helping us get our mortgage. Their knowledge and clear love of their job shines through and they have been on hand to answer all our questions no matter how silly or small. They have clearly explained everything from start to finish which has made us feel so much more at ease throughout the whole process. We can’t recommend them enough!
1st July 2021
Can I get a Contractor Mortgage with Bad Credit?
Getting a mortgage as a contractor, even if you have a good credit rating, can sometimes be a tricky task. Add on top a history of credit issues, whether big or small, and things can become much more difficult. Fortunately, I work with a range of lenders who can help contractors to get a mortgage with bad credit, and I can help you find the best deal available.
Getting a mortgage as a contractor with bad credit
Special circumstances need a Specialist Contractor Mortgage Broker. First thing to do is – DO NOT APPLY TO ANOTHER LENDER UNTIL YOU HAVE SEEN A COPY OF YOUR CREDIT FILE. See the link below on where to obtain a copy of your file that I will need to see when we talk.
Contractor mortgages based on day rate earnings
I know what you are looking for in a Contractor mortgage, and that is a lender that will lend to you based on your day rate – not Accounts, SA302’s, Tax Overviews or Tax Computations – just your day rate. For example;
£500 per day x 5 days of the week x 46 weeks in a year = £115,000 pa.
That is the figure a lender would assess you on for a mortgage not your Net Profit if you were Self Employed or Drawings & Dividends if you were a Limited Company.
Lending criteria for contractors with bad credit
Listed below are criteria that some lenders will use when assessing you for a mortgage.
- Income calculated on current weekly contract – typically this would be 46 weeks but some will lend based on 48 weeks income.
- Only 12 months contracting history is required but this could be less if you are starting out as a Contractor but have been in the same line of work for a few years. For example, if you were employed as a Programme Manager for a few years but now started out on your own contracting as a Programme Manager, lenders take comfort that you are working in the same line of work. If you were on your second 6 month contract and had a reasonable deposit, you would stand a much better chance of getting a mortgage than someone who had only just started Programming having come from a background of Car Sales for example.
- Any profession
- No minimum income
Contractor mortgages are becoming more popular
Every year, a higher percentage of the workforce is made up of contractors and contract workers. But the way mortgage applications are processed hasn’t yet caught up with this change, which means more and more people are having their contractor mortgage applications refused for reasons beyond their control. If you find yourself in this position, it can be frustrating at an already stressful time.
Refused a mortgage as a contractor?
I can help you because I am a contractor mortgage broker, helping clients who have CCJ’s or Defaults or any manner of adverse history on their credit file. I specialise in helping those who’ve had an application declined.
If your Contractor Mortgage was refused, that doesn’t mean you won’t be successful next time
Many lenders want to see a regular pay slip before they sign off on a mortgage. Contractors can fall through the gaps, because even though you’re invoicing more than enough to pay your mortgage and meet their requirements, your fluctuating income is seen as a risk.
The standard criteria lenders apply just doesn’t work for contractors, and that means you can find your applications refused regardless of the amount of money in your bank account. This way of thinking is becoming outdated with a workforce that’s becoming more and more reliant on the hard work of contractors – and it’s a way of thinking that I’ll challenge by securing your Contractor Mortgage.
Mortgage lenders for contractors
I know which lenders accept Contractor Mortgage applications having built up a list of lenders and I’ll make sure your application isn’t rejected because they are looking for accounts or SA302’s. The lenders I talk to will lend based on your weekly contract amount times the number of weeks you work in a year. Provided you have had a contract or two under your belt, I have lenders who will lend to you and if you have a poor credit history.
In my nearly three decades as a Mortgage Broker, I’ve learned the root cause for mortgages being rejected. And it’s very simple.
Lenders don’t like to take risks.
As a contractor, you represent an increased risk to lenders because once a contract comes to an end, you may not get a new one. As a contractor mortgage broker, I’ll do everything I can to minimise the risk you pose to lenders and negotiate a successful mortgage application on your behalf.
But there are steps you can take to ensure you’re successful when you apply.
What Can I Do To Increase My Chances of Success?
Approach a Specialist Broker like me!
If you’re reading my website, you’re a phone call away from increasing your chances of success. I understand the way contractors are paid and what paperwork lenders are looking for when applying for a mortgage. I can help you to secure a mortgage based on your contract rate even if you’ve been declined in the past.
Manage Your Finances
This almost goes without saying, but your finances need to be in order. Contracting can be lucrative, but your financial records need to demonstrate this. By this I mean your business bank statements cross reference with weekly contract invoices, your personal bank statements do not show bounced DDM’s or returned cheques. If you have a positive credit rating and your finances are in order, you will be in a stronger position when it comes to finding you a mortgage.
Have a deposit
Unsurprisingly, large deposits help a successful application. The higher your deposit, the lower the loan to value ratio will be and the fewer hoops you’ll be forced to jump through. If you’re managing your finances well, you should be able to put money aside to increase your chances of a successful application
Check My File – free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three credit reference agencies that lenders use – Equifax, Experian & TransUnion – so it is a good place to start to get an overview of your credit history. It may be that once I have identified a lender, we get copies of your credit file directly from the agency the lender uses to make absolutely sure your credit history is OK for that particular lender.
Mortgage broker for contractors with bad credit
Even if your application has been declined or refused in the past, give me a call as I know this market and may have lenders you may not have approached for a mortgage.
Owning your own home doesn’t mean finding a different career path to follow. Call me, Steven Neale, now on 01494 526 400 to discuss a Contractor Mortgage.