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Building Society Now Offer Mortgages for Contractors

The Mansfield Building Society is their name, and giving out mortgages for the self employed and contractors is their new game. Many are intrigued.

Most contractors are well aware of the how problematic getting a self employed mortgage can be. Many have tried, and many have failed.

That is why The Mansfield have stepped in to offer a couple of different mortgage options to those workers who are not considered “traditional” in their employment.

The first mortgage product on offer is a two year fixed rate deal, with 3.49 percent on an 80% loan to value (also known as a LTV). If you are accepted and everything goes through, then there is an additional £800 completion fee.

The second mortgage product from The Mansfield Building Society is slightly different with 3.99 percent on an 80% LTV and completion fee of 1.5 percent of the total amount loaned.

It’s also worth noting that legal and valuation fees are paid for by the customer, so make sure you factor in those costs if you are thinking about applying for one of these contractor mortgages.

So why are normal lenders so reluctant to give out money to the self employed when they want a mortgage? A lot of it has to do with limited proof of earnings, because many contractors and freelancers might only have a few years worth of bank statements to show their income.

Compare this to a normal employee who has been working in the same job for 15 years, and you can see why they are often favoured.

Not only that, but the contracting and freelancing lifestyle is considered more “erratic,” where you might have a lot of jobs one month and then barely anything the next. A lender likes to see stability, and that is why so many of our nations self employed get refused.

With that being said, there is no ignoring the fact that nearly 5 million people in the UK consider themselves to be self employed, and that is why some lenders are bucking the trend and deciding to go after this untapped market.

“We believe that offering fixed rates, alongside our common sense approach, will give a real boost to those unconventional circumstances that need the help of a pragmatic lender,” said a spokesperson for The Mansfield Building Society.

In my opinion this is a good offer from The Mansfield, with interest rates that are competitive and fees that don’t require too much cash out of your pocket.

So if you are in the market for a contractor mortgage you should definitely contact The Mansfield and check out their new offer.

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