Obtaining a mortgage for a contractor therefore can be challenging. The stringent measures surrounding contractor mortgages introduced by lending institutions means that certain criteria have to be met and the relevant evidence produced. From the lenders perspective, they are trying to protect themselves from contractors who they think will default of their payments. Employees that have a permanent work position can access lines of credit for their mortgage easier than contractors. It is the transient nature of contracts and the non permanent nature of contracts that worry lenders in terms of on going security of mortgages repayments and getting into the contractor mortgages market. However, a growing number of lenders have now identified and realise that many Contractors and Freelancers represent safe borrowers who display a history of consistent income coupled with niche skillsets and vast experience in sought after industries. This in turn allows the client to access highly competitive freelancer and IT contractor mortgages that have attractive rates with high street lenders. Many banking institutions and lenders are now recognising that the contractor mortgages market can actually consist of safe borrowersâ€. Like with employees many contractors possess a history of consistent earnings and have several years of experience in the IT Industry. The longer the history of earnings and experience in the field, the better rate that can be secured for a variety of contractor mortgages.
