Contractor mortgages

[Unix]

Looking to remortgage based on my own contractor income, went to current one (Barclays) who only looked at my self assessment income which was low last year as I retain profits for warchest and split divvies. So they couldn't loan me what I need.

Is there a bank/company that will lend based on your actual earnings? Only snag is my contract is due to end on a few weeks but 99% sure I will get renewed. Looking fpr 85% LTV and a low rate. Also would prefer it to be a second mortgage as I have a high early repayment charge on the original one

P.S. NLUK please don't ask me to search

[BrilloPad]

I can recommend Simon Butler at contractor mortgages.

You could go direct to the lenders. But might look bad on your credit history.

[Unix]

I can recommend Simon Butler at contractor mortgages.

You could go direct to the lenders. But might look bad on your credit history.

Thanks will check it out

[northernladuk]

I'd recommend John at Freelancer Financials... A search would have found that for you.

You need a specialist broker because each of the banks has different lending criteria and the products are not always available to the general public.

[Unix]

I'd recommend John at Freelancer Financials... A search would have found that for you.

You need a specialist broker because each of the banks has different lending criteria and the products are not always available to the general public.

I did search but wanted to give you a chance to shine!

Anything about rates to share? did you get a decent rate?

[northernladuk]

Yeah. Got a Halifax one in the end and very competitive. In the higher 2. Something percent I think. It beat many normal mortgages available to all.

[TheCyclingProgrammer]

My lender (Coventry Building Society) lent on the basis of director remuneration + net profit as long as you (or both applicants) have at least 75% of the share capital, which might give you something closer to the lending figure you are after. If its a joint application then both of your salaries will be considered. I vaguely recall Virgin Money (who we almost went with) can evaluate on the same basis.

It still won't be as much as doing it based on your daily rate but IIRC lending based on a daily rate requires an active contract and they'll be looking at contract duration and any gaps in your contract, which made it unsuitable for me as I tend to take on project work, sometimes with gaps between them and often for only a few months.

Ben at Power Mortgages arranged mine.

[SueEllen]

Virgin Money and Halifax both definitely do contractor mortgages. I think Clydesdale do as well.

You can actually if you are clever Google and find their lending criteria.

It's best to try a broker first as it's luck if you end up in a branch/on phone with someone who has a clue. I did but many others found they haven't.

[northernladuk]

You possibly can but it gets very complicated. Some require you've got more than half term of the contract left, others won't accept breaks of over 6 weeks etc. Don't quote me on those but it does make finding which you are eligble for a right pain in the arse. I'd deffo suggest getting one of the specialists to do the leg work.

[Unix]

Just got extended so have a shiny new contract for them to lend me money.