Mortgages and deposits

[pr1]

I'm surprised that lenders are willing to lend at 4.5 x annual contract value, because that is a large amount and risky when you consider that contracting is not guaranteed work.

So someone with an annual contract value of say £200k could borrow £900k - that's a large debt to take on and will very soon become unmanageable once out of contract for a short while.

doubt they'd go up to 900k on the same basis, I'm not on your level of earnings

[PurpleGorilla]

I'm surprised that lenders are willing to lend at 4.5 x annual contract value, because that is a large amount and risky when you consider that contracting is not guaranteed work.

So someone with an annual contract value of say £200k could borrow £900k - that's a large debt to take on and will very soon become unmanageable once out of contract for a short while.

I know what you mean, assuming a day rate of £500 then a mortgage of £517,500 might be available.

3% repayment on that is £2454 a no month. No small amount to find EVERY month!

[northernladuk]

I know what you mean, assuming a day rate of £500 then a mortgage of £517,500 might be available.

3% repayment on that is £2454 a no month. No small amount to find EVERY month!

Do they not take other outgoings in to account as well? Surely they don't lend a flat multiplier of your contract and disregard any other outgoings you have?

[PurpleGorilla]

Do they not take other outgoings in to account as well? Surely they don't lend a flat multiplier of your contract and disregard any other outgoings you have?

I wouldn't have thought so, I would guess this is the starting point...

[pr1]

Do they not take other outgoings in to account as well? Surely they don't lend a flat multiplier of your contract and disregard any other outgoings you have?

in my case, yes, they did

also wanted to know number of dependants, expected perm salary if I had to get a perm job (as I've only just finished my first year of contracting), my CV (presumably to check I wasnt BSing on the perm salary), and current contract - they will want 3 months of bank statements both personal & company when I go ahead with it (to check my income is what I say it is)