Moving and mortgages

[Bluespider]

Traditional lenders/brokers will require 3-5 yrs accounts to prove income. If you want to stay with the same provider that will be the case.

There are a number of specialist brokers, (I use Contractor Financials - others are available) that deal with a smaller panel of lenders that are willing to provide underwritten mortgages for contractors. Some want accounts but maybe only 1-2 years, others will base lending on your day rate. Its a good idea to be able to prove renewals.

We just completed our renewal with them and its the Halifax that provide the mortgage. We have 2 parts to the mortgage on different rates and unfortunately different end dates for the rate. So its the bigger of the 2 that we just renewed.

Any mortgage advisor will do the sums for you, ours figured out if it would be worth our while to pay the penalty on the smaller one to bring them into line in one loan. turned out it wasnt worth the hassle so we still have 2. They would do the same for you and figure out if its worth while to pay the penalty, port or whatever.

We took a hit about 10 years back. when i was a permie, we had a mortgage tracking the LIBOR rate. pretty much the month after we completed it climbed above the BoE base rate and kept going. it became unaffordable and it cost us 8k to get out of the 5 year tracker. but it was worth it in the long run.

[northernladuk]

Are you sure and have you asked your mortgage adviser?!

Touché sir, but oddly enough I did yes as it was a Birmingham Midshires mortgage which aren't available to the public. It was a ridiculously good product, good rate with unlimited over payments and drawdown. I wonder if that's the reason they refused or just that lender doesn't do dual products. Interesting.

[NibblyPig]

Traditional lenders/brokers will require 3-5 yrs accounts to prove income. If you want to stay with the same provider that will be the case.

There are a number of specialist brokers, (I use Contractor Financials - others are available) that deal with a smaller panel of lenders that are willing to provide underwritten mortgages for contractors. Some want accounts but maybe only 1-2 years, others will base lending on your day rate. Its a good idea to be able to prove renewals.

We just completed our renewal with them and its the Halifax that provide the mortgage. We have 2 parts to the mortgage on different rates and unfortunately different end dates for the rate. So its the bigger of the 2 that we just renewed.

Any mortgage advisor will do the sums for you, ours figured out if it would be worth our while to pay the penalty on the smaller one to bring them into line in one loan. turned out it wasnt worth the hassle so we still have 2. They would do the same for you and figure out if its worth while to pay the penalty, port or whatever.

We took a hit about 10 years back. when i was a permie, we had a mortgage tracking the LIBOR rate. pretty much the month after we completed it climbed above the BoE base rate and kept going. it became unaffordable and it cost us 8k to get out of the 5 year tracker. but it was worth it in the long run.

Thanks for the info. I will have to wait a bit then ask.

I regret so much tying in for 5 years fixed. A flexible tracker would have been so much better - no overpayment charges, no fixed term, no set up fee, interest slightly lower than the fixed amount, grargh. Unless interest rates skyrocket in the next 3.5 years I will be kicking myself for a while, but everyone assumed the low interest rates were only a short term blip!

[pr1]

I will be kicking myself for a while, but everyone assumed the low interest rates were only a short term blip!

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[Emma Power Mortgages]

I am currently 1.5 years into a 5 year fixed term mortgage.

If I wanted to move house, I'd have to keep my mortgage or incur a large penalty.

However, I imagine that buying a new house would involve some kind of mortgage-review or adjustment cos the new house would have a different price etc. to the current one. As I've only been contracting for less than a year, I suspect the bank wouldn't give me a new mortgage.

Does anyone know what my options might be, other than waiting for 3.5 more years? Is there any legislation in place to allow you to escape the fixed term clause in a situation that the bank is unable to offer you a new suitable mortgage, or am I scuppered?

This will largely depend on who your mortgage is with. There are options to port the mortgage to a new property and top up the balance, if required, provided your circumstances still meet that lenders requirements. If not you may need to pay the Early Repayment Charges. Your best advice will come from a specialist broker who can ask the right questions and give you answers specific to your circumstances. The initial enquiry and advice should not cost you anything and you can discuss your options

[Emma Power Mortgages]

When I got my mortgage I was earning a lot less than I am now as a contractor. I got my mortgage with Santander. I could ask the mortgage broker for his opinion I suppose, but I suspect I'd at least need a year of accounts or whatever so would probably have to wait until December at the earliest anyway. Cheers for the advice

I would highly recommend speaking with a broker about this you may run into a few problems with your current lender, a short conversation with a broker could give you the timescales and options you need to make a decision