Contractor mortgage range launched
The Society has launched a range of contractor mortgages designed to assist borrowers who are employed on short-term renewable contracts.
Our two and three year contractor mortgage products for purchases and remortgages are available up to 85% loan to value. Whilst qualifying borrowers must have minimum 12 months 'contractor' employment history, there is no minimum income requirement and all types of occupations can be considered.
Applications from both employed and self-employed contractors are welcome; to include contracts via associated 'umbrella' companies.
Affordability is calculated against the lower of the current contracted daily rate multiplied by 220 working days (excluding weekends and bank holidays) or as an average of the last 12 months gross income. The existing contract must have a minimum of six months remaining at the time of application or the ‘employer’ must confirm that the contract will be renewed for a further six months.
Richard Groom, head of mortgage sales at the Tipton, says: "Historically contractors may have found it difficult to obtain a mortgage and we want to redress the balance. The number of contractors and self-employed workers continues to grow and we've launched these products in response to the changing nature of the UK employment market. We'll continue with our 'common sense' approach to lending and take into account the personal circumstance of every contractor applicant."