Contractor Buy to Let

Looking to make you first investment property purchase? Experienced landlord looking to expand your portfolio?

Many contractors use Buy to Lets as a part of their retirement strategy. Navigating the buy to let mortgage market as a contractor can be tough, but My Contractor Broker can help.

Our team have been helping contractors for over 15 years. So regardless of whether this your first investment property, you’re an experienced landlord or looking to purchase your investment property under a limited company, help is at hand.

A considerable number of contractors are opting to become landlords in order to establish a consistent stream of income during their retirement years. With the guidance of a specialised mortgage broker such as My Contractor Broker, the process of setting up a buy-to-let mortgage has been made significantly more accessible.

Unless you possess a substantial amount of cash to purchase a property outright, you will need to apply for a buy-to-let mortgage once you have found a suitable property and had your offer accepted.

Here are some key points to understand about buy-to-let mortgages:

Interest-only: The majority of buy-to-let mortgages operate on an interest-only basis. This means that you will only be required to pay the interest on your mortgage loan each month, with the loan itself being repaid at the end of the mortgage term. Typically, landlords sell the property to settle the loan, hoping that the property's value has appreciated, resulting in a profit.
Larger deposit: Due to the perceived higher risk associated with buy-to-let mortgages, lenders typically require a larger deposit compared to residential mortgages. The minimum deposit is usually 20% of the property's value, but it can be as high as 40%.
Consideration of rental income: The amount you can borrow for a buy-to-let mortgage is primarily based on the expected rental income from the property. Lenders typically require the monthly rental payments to cover at least 125-145% of your monthly mortgage repayments, also known as the "interest cover ratio." This provides some flexibility in case a tenant fails to pay rent or if the property remains vacant for a period of time.

The most suitable buy-to-let mortgage for an individual is contingent upon their specific circumstances. No two contractors are the same, whether it be in terms of their ambitions or their current career situation. Consequently, the ideal mortgage structure will vary depending on these unique circumstances.

At My Contractor Broker, we are proud to offer the expertise of our contractor buy-to-let specialist advisors. These knowledgeable professionals are dedicated to assisting you in making informed decisions every step of the way.

We can help:

To get started, you can use our contractor mortgage calculator or simply provide your contact information through our contact us form.

Please feel free to call us on 02394 211122 or request a callback.

Who we work with

Testimonials

You can see our clients feedback what they say

I needed a mortgage quickly as I had been let down by a well known high street bank. Andy worked extremely quickly in sorting out a new mortgage offer for me, and even found a lender that took my day rate into account, meaning I could borrow more than I thought I could. The process to get Andy all of the documents he needed was painless and within a few days I had the offer from the bank. Would definitely recommend to anyone looking for a new mortgage or remortgaging.”

Simon Davies Manager

Simon Davies Manager

FAQs

Can I get a mortgage as a contractor?

Yes. We have access to bespoke contractor underwriting that will allow you to borrow based on contract value. Find out how much you can borrow here – Link to calculator

Do I need to have been contracting for a specific period?

No. We have access to lenders that are happy to assist from Day 1 of your contracting career and assess borrowing based on your contract value, although each lender will have their own set of criteria that you will need to meet. One of our dedicated contractor specialist mortgage consultants will be able guide you through the options

Can I get a contractor mortgage with no limited company accounts?

Yes. We have access to lenders that will be happy to assist without company accounts with borrowing based on your contract value. We can assist from Day 1 of your contract, although each lender will have their own set of criteria that you will need to meet. One of our dedicated contractor specialist mortgage consultants will be able guide you through the options.

Can I get a mortgage whilst working through an umbrella company?

What size deposit will I need?

Deposits can start from as little as 5% but rates tend to improve the larger the deposit available. One of our dedicated contractor specialist mortgage consultants will be able guide you through the options.

Will I pay a higher interest rate?

No, we have negotiated bespoke underwriting and processes not interest rates. We work with high street lenders to ensure you don’t get penalised for the way in which you work. One of our dedicated contractor specialist mortgage consultants will be able guide you through the options.

I’ve had credit problems in the past, will this stop me getting a mortgage?

Not necessarily, although it does become more difficult. One of our dedicated contractor specialist mortgage consultants will be able review your situation and advise you of any options that are available.

Who provides contractor mortgages?

There are now more Highstreet lenders than ever prepared to accept a contractor mortgage application. These include well-known names such as Halifax, Barclays, Clydesdale, Virgin Money and Nationwide to name but a few. The exact lenders available to you will depend based on your personal circumstances. One of our dedicated contractor specialist mortgage consultants will be able guide you through the options.

Why should I choose My Contractor Broker?

Instead of us telling you all the reasons why, we thought we would leave it down to our clients

#get in touch

Ready to get started ?

Speak to a MyContractorBroker specialist on 02394 211122