Aldermore Makes Getting a Mortgage Easier for Contractors

Good news for anyone working as a self-employed contractor – getting a mortgage is about to get simpler! Aldermore bank has just announced a major shake-up to its lending rules, making it easier than ever for contractors to secure a mortgage.

In the past, contractors often faced an uphill battle when applying for a mortgage. Lenders often viewed their income as less stable than that of permanent employees, leading to stricter affordability checks and higher deposit requirements. But Aldermore is changing the game!

Here’s the lowdown on what’s changing:

Employed Status for Contractors: Forget about complicated income assessments – Aldermore will now assess your affordability based on your gross income, just like they would for an employed person. This means you could potentially borrow more!
Less History Required: You’ll need to demonstrate either 12 months of experience as a contractor or 24 months in the same line of work (with at least two months remaining on your current contract or a renewal agreement in place).
Income Calculation Made Easy: Aldermore will determine your income by multiplying your day rate or hourly rate by 46 weeks – simple and straightforward.
High Loan-to-Value Ratios: You can access mortgages with up to a 90% loan-to-value (LTV) ratio, meaning you could buy a home with just a 10% deposit. And for those working through an umbrella company or on a fixed-term contract, it’s even better, with LTVs up to 95% available!
Flexibility is Key: Aldermore understands that life can be unpredictable, and they offer options for those with less-than-perfect credit histories.

Jon Cooper, Director of Mortgages at Aldermore, shared, “We know homebuyers have more varied and complex circumstances than ever before, especially those who are self-employed contractors. Aldermore’s flexible approach for people who are sometimes overlooked enables us to back more customers on their individual merits and enable them to get the mortgage that’s right for them. If the loan makes good sense, we will always strive to make it work and find a solution.”