To mortgage specialists -5 years fixed term

[saptastic]

We are looking for 5 years fix term mortgage for
Mortgage: £335, 000
Property Valuation: £500,000
Deposit: £165,000 (33%)

We had a meeting with the local mortgage adviser this morning. The rate offered by contractor friendly banks e.g. Halifx is 0.7% higher.
So he recommended to go as self-employed applicants (use annual income instead of daily rate. company accounts, accountant certificate required).

The best rate he can offer is 2.99%. If you can find a better offer, please PM me. Thank you.

Is 2.99% with the Halifax ??? Looks like a good rate.

[Power Mortgages Ltd]

I'm guessing the 2.99% is with Virgin Money or Woolwich?

Virgin Money would be the lender who could lend more as they base your income on the net profit of the Ltd Co before the deduction of corporation tax plus the salary you take from the Limited Company.

By comparison, Woolwich will only assess salary and dividends and may use retained profit for that year at the Underwriters discretion.

That rate of 2.99% for a 5 year fixed rate is the best option available with the figures you have provided.

Incidentally if you topped your deposit up (if possible) by £10,000 then you would have a 35% deposit exactly and Coventry would then be able to offer 2.95% 5 year fixed rate. They do not charge a valuation fee either which is an additional saving of circa £500 (dependent upon what the lender you have been recommended has quoted for their valuation fee).

But yes, that rate of 2.99% for your figures is the best.

[Jack Kada]

We are looking for 5 years fix term mortgage for
Mortgage: £335, 000
Property Valuation: £500,000
Deposit: £165,000 (33%)

We had a meeting with the local mortgage adviser this morning. The rate offered by contractor friendly banks e.g. Halifx is 0.7% higher.
So he recommended to go as self-employed applicants (use annual income instead of daily rate. company accounts, accountant certificate required).

The best rate he can offer is 2.99%. If you can find a better offer, please PM me. Thank you.

Interetsng dilema and your figures are not a million miles from where I was. Try if you can to get your LTV to 60%. I actually put a spreadsheet together which showed that borrowing on a zero % credit card a small amount to get my LTV to 60% was hugely beneficial and made a big impact on the rate that I eventually secured

Good luck!

[Freelancer Financials]

2.99% fixed for 5 years is amazing in comparison!

I have been going through the process via a contractor mortgage broker that is coming in at 4.49% for two years.. Thats for a 275k house with 30k deposit! (Although its a joint based on the misses Perm and my day rate), that might have an effect on things.

The Halifax deal at 90% LTV is not the most competitive deal based on "contract based underwriting". Clydesdale Bank this week launched a 3.79% 2 year fixed until 31/12/2016. But to qualify you need to be on gross contract earnings of £75k a year or £312.50/day. Even Halifax are offering better rates than 4.49% now! the rate you are referring to is an old rate. If you're already deep into on the mortgage process with your broker, ask them to switch you to the latest 90% rate which is lower.

When the rates reduce with Halifax we always ensure that our clients are switched to the lower rate, Halifax allows this.

All the best.

John Yerou

[Freelancer Financials]

I'm guessing the 2.99% is with Virgin Money or Woolwich?

Virgin Money would be the lender who could lend more as they base your income on the net profit of the Ltd Co before the deduction of corporation tax plus the salary you take from the Limited Company.

By comparison, Woolwich will only assess salary and dividends and may use retained profit for that year at the Underwriters discretion.

That rate of 2.99% for a 5 year fixed rate is the best option available with the figures you have provided.

Incidentally if you topped your deposit up (if possible) by £10,000 then you would have a 35% deposit exactly and Coventry would then be able to offer 2.95% 5 year fixed rate. They do not charge a valuation fee either which is an additional saving of circa £500 (dependent upon what the lender you have been recommended has quoted for their valuation fee).

But yes, that rate of 2.99% for your figures is the best.

I totally concur with Ben. But you need a good mortgage broker who understands how to interpret your accounts.

[Mark McBurney@CMME]

The Halifax deal at 90% LTV is not the most competitive deal based on "contract based underwriting". Clydesdale Bank this week launched a 3.79% 2 year fixed until 31/12/2016. But to qualify you need to be on gross contract earnings of £75k a year or £312.50/day. Even Halifax are offering better rates than 4.49% now! the rate you are referring to is an old rate. If you're already deep into on the mortgage process with your broker, ask them to switch you to the latest 90% rate which is lower.

When the rates reduce with Halifax we always ensure that our clients are switched to the lower rate, Halifax allows this.

All the best.

John Yerou

Just to point out; Clydesdale's underwriting method actually means that you need to earn c.£326.15 per day to meet the £75k p.a. minimum, as they assess on 46 weeks rather than 48 weeks like Halifax.

[Freelancer Financials]

Just to point out; Clydesdale's underwriting method actually means that you need to earn c.£326.15 per day to meet the £75k p.a. minimum, as they assess on 46 weeks rather than 48 weeks like Halifax.

That's correct, thanks for pointing that out.

[Freelancer Financials]

There could be any number of reasons why that's the case, in fairness - Halifax like to change their rates frequently.

For comparison - their lowest 90% LTV rate at present is 4.24%, however there's an exclusive that we can access at 4.19%. There is a better rate with another contractor friendly lender at 3.79% however.

Just for your information 7of9, the 3.79% deal is Clydesdale Bank.

[7of9]

one year gap

Thank you everyone. The 2.99% is from Abby(Santander) as self-employed applicant instead of contractor. One problem is I got a year gap (2012-2013). Although I still withdrew same amount of salary and dividend, my company account showed the profit that year was next to nothing. Will that affect my application? My local adviser said it would not, but another contractor mortgage adviser I spoke to said it would affect my application and they could not get me anything on self-employed terms. Who shall I listen to?

[Freelancer Financials]

Thank you everyone. The 2.99% is from Abby(Santander) as self-employed applicant instead of contractor. One problem is I got a year gap (2012-2013). Although I still withdrew same amount of salary and dividend, my company account showed the profit that year was next to nothing. Will that affect my application? My local adviser said it would not, but another contractor mortgage adviser I spoke to said it would affect my application and they could not get me anything on self-employed terms. Who shall I listen to?

It's difficult to answer that question without having ALL your details. As long as your net profits exceed your drawings (salary and dividends) in your latest years accounts 2013/2014 you should be fine. But if your drawings exceed your net profits in your latest years accounts, the underwriters will not be happy.

Coventry Building Society will assess you on your latest years accounts. Feel free to PM me if you want specific help. But your mortgage broker should have no problem navigating you through all this. If you're unsure about him then you need to find someone else you trust and have confidence in.

There are plenty of specialist mortgage brokers out there. Just Google "Specialists self employed mortgage brokers".

Good Luck!

John Yerou
Freelancer Financials