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4 Ways to Increase the Chances of Contractors to Get a Remortgage

by AwsMortgage231

Contractors face a variety of complexities and problems in obtaining a remortgage. How to prove income, prepare and collect the required documents, lack of knowledge about the types of products available in the market, and the complexity and unfamiliarity with the process of remortgages underwriting are among the issues that make the work difficult for contractors. This article addresses these issues and suggests solutions to address these issues.

  1. Proof of income

Many contractors’ revenue structure is based on umbrella companies or limited companies. In this case, the company is considering lower monthly salaries because they prefer to pay lower taxes. Therefore, checking bank accounts is not a good option to prove contractors’ income. But some lenders use the daily rate as a basis for assessing applicants’ affordability. They convert the contractors’ daily rate (before tax) into the total “annual” amount and use that figure as the equivalent of a salary. However, other options such as company managers or sole traders’ bonuses and commissions can also be used to prove revenue.

  1. Provide work records

Lenders typically request a copy of the contractors’ current contract rates with an up-to-date CV. A strong work experience in an industry helps reduce their borrowing risk. The lower the credit risk of the contractors, the lower the interest that the contractors will eventually pay. Depending on the borrower’s profile, some lenders may request more or less evidence.

  1. Identify types of remortgages.

Lenders offer different types of remortgages. Fixed-rate, tracking, and variable remortgages are among the most important classification of remortgages based on interest rates. Capital and interest remortgages (repayment), interest only, Buy to Let and offset remortgages are also the most important. But the key question for contractors is which of these types of remortgages meets their needs and requirements?

  1. Use the advice of a contractor remortgage broker.

Contractors need a qualified broker to access remortgages because lenders and banks do not train all their advisors and underwriters on remortgages. AWS Mortgage advisors always talk to expert lenders, and they know what remortgages lenders are offering. But our advisors are fully aware of this situation and are in direct interaction with lenders and contractors.

The importance of using AWS Mortgage advisors

AWS Mortgage advisors are aware of the advantages and disadvantages of each remortgage. They help contractors in the various stages of obtaining remortgages to find the best option for them, given the broad categories of remortgages available regarding how to repay and calculate rates.

AWS Mortgage advisors help contractors choose the best option from the available options. Our team of experts is here to help you find the right solutions for your unique situation. Our advisors know that these challenges vary from person to person, but our services will always be tailored to your specific goals and circumstances. AWS Mortgage advisors specialize in evaluating the terms and options right for you as a contractor.

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