Contractors and freelancers have struggled very hard to get a modest mortgage but problem is that without proper guidance a huge number of individual they fail to get a competitive deal. As thefinancial crisis deepens, it means that contractors would usually miss out on a dream home as they face more barriers while getting a competitive mortgage rate from top street lenders. Individuals with permanent employment have also attractedfavorable rates because of lenders having anunfair bias to them. That’s because lenders view the workers that have permanent status as less of a risk than the employees who have contractual status.
Unfair as it might seem, that bias is still quite strong these days if not worse because of thefinancial crisis. Unluckily contractors are neither seen as self-employed or employed, somewhere in between two, which makes it very hard for lenders to determine thepossible affordability of different contractors. It’s made even more complex by a fact that numerous contractors work through a huge number of payment mechanisms and trading structures, comprising thelimited company. Since credit crunch numerous lenders have streamlined their processing and underwriting, underwriters aren’t properly trained to comprehend exclusive nature in which contractors are properly paid, that’s why numerous contractors such as IT contractor mortgage fail to get a mortgage
Over past few years, as contractor market has expanded and grown, a huge number of qualifiedinstitutions and organizations including Social Networking sites, PCG, Recruitment agencies, Contractor Accountants, and Financials advisors also have worked very hard to convince a huge number of banks to view contractors in a different way. That has given birth to IT contractor mortgage! This allows contractors working through diverse trading structures to get a mortgage. A huge number of mortgage specialists have lobbied to get different lenders in order to alter their lending policy to contractors. That has meant if lenders are reviewed their conventional underwriting method to accommodate contractors.