Contractor Mortgage

[BlightyBoy]

I was able to secure a mortgage with C & G based on one years accounts and one years projected income.

This was for a "buy-to-let" mortgage though, so that could've had some bearing on it (i.e. "guaranteed" earnings from rental income)

[Freelancer Financials]

I was able to secure a mortgage with C & G based on one years accounts and one years projected income.

This was for a "buy-to-let" mortgage though, so that could've had some bearing on it (i.e. "guaranteed" earnings from rental income)

Absolutely correct. BTL mortgages are assessed differently to residential mortgages. The main criteria for lending on a BTL is for the rental income
to cover 125% (sometimes more) of the mortgage interest-only repayments.

Very few BTL lenders will want more than 1 years acconts.

John

[Freelancer Financials]

Mortgage

Hi,

I am interested in getting a contractor Mortgage. My partner is permanent and has a steady job (senior teacher). I have been trading since Dec 07 but only submitted one year of accounts (Oct 09). Does anyone know if the 2 years of accounts that most banks require relate to two years of submitted accounts or 2 years of trading with an income?

Any advice on how to get the best deal. I went to my accountants broker but they could only offer me 1 supplier which was 6.99% fixed due to not having 2 years of accounts

Thanks

You're accountants broker should retire! That's a ridiculous deal. Unless you only have a maximum deposit of 10%.

There are many lenders out there that will consider you. A specialist contractor mortgage broker can secure you a competitive deal with a high street lender with one years accounts or just your contract rate alone. As long as you have been contracting through your own limited company for more than a year and have no adverse credit history.

Best of luck!

John