By CMME, in partnership with Parasol
Buying a home is exciting, but if you’re a contractor or umbrella employee, the process can feel a little less straightforward. Lenders often view non-traditional income differently, which can add unnecessary stress if you’re not prepared. The good news is that a few small steps can make the process much easier.
5 tips for contractors when buying a home
1. Get Your Finances Organised Early
The first step is to make sure your paperwork is in order. This means keeping your payslips, bank statements, and any tax documents easy to access. If you’re with Parasol, you’ll already have most of what you need to hand, which saves time later on.
“A little preparation goes a long way,” says Stacey De’Athe, Senior Mortgage Consultant at CMME. “When your income records are clear and up to date, you’re in a stronger position to move quickly when you find the right property.”
2. Understand What You Can Afford
Before you start looking at properties, take time to get a realistic idea of your budget. Think about:
- How much you have saved for a deposit
- What you can comfortably afford for monthly payments
- Any changes to your income that might be on the horizon
Knowing your numbers early helps you focus your search and avoid disappointment later.
3. Keep Your Credit Profile Healthy
Lenders rely heavily on your credit profile, so it pays to keep it in good shape. Some easy wins include:
- Registering on the electoral roll
- Paying bills and credit cards on time
- Keeping your credit card balance well below the limit
These habits can help improve your credit score, which can make borrowing simpler and, in some cases, cheaper.
4. Budget for the Extras
The deposit is only part of the cost of buying a home. You’ll also need to plan for:
- Stamp Duty (if applicable)
- Legal and conveyancing fees
- Surveys and valuation fees
- Moving costs
Being aware of these expenses upfront means fewer surprises along the way.
5. Give Yourself Time
If you’re renewing your contract soon or have a big change in your income coming up, try to plan your timeline carefully. Lenders prefer to see stability, so starting the process when things are steady can make everything run more smoothly.
“Patience can really pay off,” Stacey adds. “Rushing can lead to mistakes or missed opportunities, so give yourself the time to prepare properly.”
Final Thoughts
Buying a home as a contractor or umbrella worker doesn’t need to be complicated. With a bit of preparation, a realistic budget, and an organised approach, you can make the process far less stressful and far more rewarding.
CMME has worked with thousands of people in similar positions. The more informed you are before you start, the more confident you’ll feel when it’s time to make your move. Book a call with a mortgage expert at CMME via MyMarketplace.
