CMME’s Philosophy

One of the main reasons behind the company's philosophy was to ensure that contractors were not penalised for being more entrepreneurial than permanent employees when it came to securing their mortgage funding.  In fact, we have always felt it was hugely unfair that contractors had to rely on self-certified options. We have worked hard to establish more cost effective options.

Many contractors prior to the credit crunch relied on self-certified mortgages, where little or no checks were conducted by lenders on income verification, however you paid a higher rate of interest. Since the onset of the credit crunch, these types of mortgages have been removed from the market.

Lenders have increasingly become risk averse

They are all looking to lend to those they perceive as low risk. In the eyes of the lender, contractors do not fit this criteria. The reason for this is two-fold:

  1. Firstly, contractors are unlikely to be able to prove the right level of income to support the level of funding, using the lenders standard criteria for income assessment. For example, if your daily rate is £500 per day, and you are looking to purchase a property at £350,000, and you run a limited company, but only salary and dividends of say £45,000 this is likely to restrict your lending to a maximum of £225,000.
  2. Secondly, lenders are concerned if your current contract comes to an end, how you will continue to afford the mortgage.

Our solution to help contractors secure a mortgage

As an organisation we are proud of the fact that we have campaigned for a more flexible approach by lenders when looking at mortgages for contractors. We have managed to overcome both these issues with a number of lenders by utilising bespoke underwriting terms for contractors.