Contractor Mortgages

As more and more people opt to be self-employed, this area of the market continues to grow-and-grow, according to a recent study, it is estimated that 50% of the working population will be working in some form of freelance capacity by 2020.

Historically it would be difficult to arrange mortgages for people working under contract structures, but as the labour market has changed, so too has the mortgage market and there are now 12 mainstream lenders who have a dedicated contractor lending policy, not to mention the more ‘specialist’ lending options, which continue to proliferate.

Capricorn have been advising in this space for over 10 years and are true experts – supported by the fact we expect to arrange over £1.2bn of loans in 2016, giving us significant leverage with the key lenders in this market.

We have exceptional lender contacts, often with dedicated underwriters all of which vastly improves the chance of your mortgage being approved.

Case Study

Previous Employment

Salary: £70k

Benefits: 4 x Death in Service

Pension: Full

Monthly income: £3978

New Situation

Day rate: £500 per day

Week rate: £2500

Weeks per annum: 48

Annual income: £120k

Monthly income: £8000

Company benefits: £0

Previous Mortgage Capacity

Salary: £70k

Benefits: 4 x Death in Service

Pension: Full

Monthly income: £3978

New Mortgage Capacity

Day rate: £500 per day

Week rate: £2500

Weeks per annum: 48

Annual income: £120k

Monthly income: £8000

Company benefits: £0

Previous Protection Solution

£280k of cover, dependent on their employer

Case Study 2

Full Life Cover for mortgage, so £350k: £15 per month (based on applicant 30 years of age, non-smoker, in good health)

Critical Illness Cover of £100k: £27 per month (based on applicant 30 years of age, non-smoker, in good health)

Income Protection Benefit of £4k per month, deferment period of 6 months: £47 per month (based on applicant 30 years of age, nonsmoker, in good health)

The client is fully protected for: £89 per month, and they should be able to run this through their limited company, as life cover, which has further tax benefits.

A Capricorn Protection Specialist can advise on this in more detail alongside the mortgage process. There is no initial charge for this service and no obligation

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances
and changes which cannot be foreseen.

What are the benefits?
Much greater mortgage capacity
Same interest rates as before
Earning twice as much now as they were before
More protection than they had before
Critical Illness Cover of £100k
Income Protection running for 25 years, not 6 months
Cover will be set up correctly, in a tax efficient method and in trust where appropriate
Contact us to find out more - info@capricornfinancial.co.uk or call +44 203 1110900