Until a few years ago freelancers and individual contractors faced significant difficulties with mortgage providers.
Lenders are now more relaxed about granting mortgages to individuals who work on a freelance or contract basis.
With the help of a qualified mortgage adviser you can benefit from their experience and select from a range of options as noted below.
Flexible payments mortgage
You can miss paying an agreed level of monthly instalments each year and overpayments of up to 10% of the outstanding balance are also allowed without penalty each year.
With this arrangement any monies held in any accounts with the lender is offset against your outstanding mortgage and interest is only charged on the balance.
An agreed level of borrowing is granted at the beginning of your mortgage and allows you to borrow up to that amount at any time. This provides greater flexibility to you in the future, yet you are only liable to pay interest on the current level of borrowing.
It is now becoming normal practice to review your mortgage at the end of any special offer period which normally lasts for the first two, three or five years of your loan. At the expiry you are usually asked to pay the lenders standard variable rate. This can increase your interest rate and monthly payments substantially. A re-mortgage to a further special introductory offer can reduce the interest rate. A mortgage adviser will be able to source for you the best offers available.
Fixed, variable, capped or discounted mortgages
The choice is immense and understanding which mortgage type suits your working pattern is important. It is also vital to ensure you avoid penalty clauses that apply after the end of any special introductory offer, especially if you intend re-mortgaging to a further special offer.
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