You’re more than welcome to test out what we say on the High Street. Under any other circumstances, we’d maybe even suggest that you do.
But knowing that failed credit searches impact your rating, we must advise against it. You might think you’re being smart by avoiding paying a small fee. But we’d suggest that going direct is not worth taking the chance. Here’s why…
…we’ve spent years dealing with senior underwriters at these banks and building societies. Even at the highest level, some lenders will not countenance contractors.
Yet they do not advertise this fact on the shop floor. You walk in, tell them you’re a contractor, they process your application. Great! What’s all the fuss about?
The problem is, they’re classing you as self-employed. They will ask for your accounts, accounts which show low drawings. They will use this figure to work out how much you can afford. They may even give you an agreement in principle. And that’s where it all falls down.
When that application gets to their underwriters, it will fail. They’ll take one look at your take home pay compared to the amount you want to borrow and reject it.
Understanding contracting as we do gives us – and you – an unparalleled advantage. We’ve already done – and continue to do – the leg work. Senior underwriters, trust us because we go to these lengths. As a result, they’ll assess your application on only the points that matter.
Even if you go direct to these same lenders, you cannot guarantee the same result. Advisers in branch are rarely trained to understand the way contractors work.
Their default mortgage process asks for two-to-three years’ accounts from the self-employed. They’re indifferent to the fact that you’re a contractor with high potential earnings.
If you’ve only just begun contracting, this is where your quest for a mortgage ends at the high street at least. Any hopes you had of getting a mortgage there, will go up in flames.
Do remember the effect that failed credit applications have on your history. You’re risking a black mark against your name that other lenders will see when you go to them. Even if they’re ‘contractor-friendly’, you don’t want to give them an excuse to find fault in your application.