Securing a mortgage as a self-employed professional, freelancer, or contractor can be more challenging than for those with stable, salaried employment. To navigate the complexities of the mortgage application process, many self-employed individuals opt to work with contractor mortgage brokers. These professionals specialise in helping clients find the best loan products and terms suited to their unique financial situations. In this article, we discuss the documents you will need to provide when working with contractor mortgage brokers.
Essential documents for contractor mortgage applications
Proof of identity: You will need to provide valid proof of identity, such as a passport or driver’s licence, to confirm your identity and legal status.
Proof of address: To verify your current residential address, you may need to present utility bills, bank statements, or council tax bills dated within the last three months.
Contract history: As a contractor, you should provide copies of your contracts from the past 12 to 24 months. These documents should include details about your contract rates, contract duration, and any extensions or renewals. The more consistent and stable your contract history, the better your chances of securing a mortgage.
CV or work history: Lenders may want to see evidence of your work history and professional experience in your field. A CV detailing your skills, qualifications, and previous contracts can help demonstrate your expertise and ability to secure future contracts.
Bank statements: Lenders typically require three to six months’ worth of personal and business bank statements to assess your income and expenditures. These statements should clearly indicate your contract earnings and any other income sources.
Company accounts or tax returns: If you operate as a limited company or a sole trader, you may need to provide your company accounts or tax returns (such as the SA302 form) from the past two to three years. These documents should clearly show your company’s profits, dividends, and any retained earnings.
Proof of deposit: You will need to provide evidence of the deposit you plan to use for the mortgage. This can be in the form of a savings account statement or a gifted deposit letter if you are receiving financial assistance from family members.
Credit report: A comprehensive credit report is crucial for lenders to assess your creditworthiness. You can obtain your credit report from one of the major credit reference agencies in the UK, such as Experian, Equifax, or TransUnion.
Depending on your specific circumstances, you may also need to provide the following documents:
Evidence of other income: If you have additional income sources, such as rental income, investments, or a part-time job, you should provide documentation to support these claims.
Proof of ongoing contracts: If you have ongoing contracts that extend beyond your mortgage application, you may need to provide documentation to prove the stability of your future income.
In summary, working with contractor mortgage brokers can simplify the mortgage application process for self-employed professionals, freelancers, and contractors in the UK. By preparing the necessary documents beforehand, you can speed up the process and improve your chances of securing the best mortgage products and terms for your needs. Always consult with your contractor mortgage broker to ensure you have all the required documents for your specific situation before applying for a mortgage.