Are you a contractor that has had their mortgage application declined?
It is not surprising that many contractors have their mortgage application turned down if they choose to approach the lender directly. Many lenders do not have the skills or expertise to understand the innovative ways a contractor can be paid.
Direct lenders will often ask for documentation that is near impossible to obtain and it is fairly common for lenders to believe the borrowing amount is not affordable to the individual in question. If you are a contractor and this sounds all too familiar to you, it is important to note there are alternative methods of securing mortgage funding.
Detailed below we have highlighted the necessary steps to carry out if you have been declined a contractor mortgage.
Firstly you will need to identify where it went wrong. In the first instance we recommend taking a look at your credit report to find out if you have any obvious reasons for your mortgage being declined.
Once you have a good insight into your credit file and circumstances it is now time to look for someone who understands the world of mortgages for contractors. If you have not yet considered a contractor mortgage specialist now is the time to research what they can offer you.
They have the necessary skills and experience to evaluate your situation and will ensure the lender understands your income profile before making a full application. This will reduce the risk of having an application declined for the second time.
It’s all good and well chasing the best mortgage rates on the market but if your lender does not understand your financial position there is a possibility your application will be declined. It is a sad state of affairs that contractors are not understood by lenders but it is worth keeping in the back of your mind that the contractor still holds the cards firmly in their hands and they will be choosing someone to entrust their mortgage is arrange successfully.