Are Halifax mortgages contractor friendly?

[davidc123]

I've read a few fairly old posts mentioning that they have managed to get a mortgage from halifax by providing 2-3 years of accounts, or letters from their accountant.

I'm just wondering if anyone's had any recent experience of this? I tried calling them but they said they'd only consider personal income, so I'm wondering if i just spoke to the wrong person.

Thanks

[SueEllen]

First rule most normal people and that includes bank staff don't understand what contracting is. Some of them will understand if you say you are a director of a small company but out of that set few will understand how you get paid.

Next Halifax require you to have 3 years of accounts. You should make an appointment and at the same time ask what other documentation you need to bring apart from copies of your accounts.

However don't bother with making an appointment until you have checked your credit file online with all 3 agencies and confirmed it's good.

[Scruff]

Here we go again...

Halifax will give you up to 90% LTV (5.39%), 85% LTV (3.69%).

You need to send them your CV and your signed contract (needs at least 6 weeks remaining on it). I never had any company accounts, since I had only returned to Contracting after 3 years in Permie doldrums.

I received an AIP within a week, and the offer on the same day as the valuation.

You need a flawless credit history...and a decent Mortgage Advisor (ahem, my wife )

[Willapp]

I recently got an AIP with Halifax through Contractor Mortgages, a specialist broker who advertise on this site. I've only got 1 years accounts too so I don't think there's a requirement to have more providing you've got a good credit history and a signed contract/proof of income etc.

[northernladuk]

First rule most normal people and that includes bank staff don't understand what contracting is. Some of them will understand if you say you are a director of a small company but out of that set few will understand how you get paid.

Next Halifax require you to have 3 years of accounts. You should make an appointment and at the same time ask what other documentation you need to bring apart from copies of your accounts.

However don't bother with making an appointment until you have checked your credit file online with all 3 agencies and confirmed it's good.

Are you sure about this? Last time I spoke to Halifax a year ago about a mortgage I advised I ran a small business and the operator said that was fine they are happy to contact my accountant direct and I also didn't have 2 years to which they said they will take a mix of filed accounts and perm. The process was pretty slick and with no question. I thought they had done a pretty good job of understanding small businesses. Do they understand the concept of lending on daily rate rather than artificially reduced income is a different question.

[jamesbrown]

Are you sure about this? Last time I spoke to Halifax a year ago about a mortgage I advised I ran a small business and the operator said that was fine they are happy to contact my accountant direct and I also didn't have 2 years to which they said they will take a mix of filed accounts and perm. The process was pretty slick and with no question. I thought they had done a pretty good job of understanding small businesses. Do they understand the concept of lending on daily rate rather than artificially reduced income is a different question.

According to their website, that is accurate, but perhaps they offer some flexibility and/or local variability depending on who you speak to:

Halifax Mortgages - New mortgage common enquiries

Certainly, I could imagine some flexibility if negotiated through a broker, although not all brokers deal with Halifax.

[insomniac]

Hi,

This is a timely thread as I was about to ask a similar question. I bank with HSBC and they were my first port of call. I've been contracting for about 9 months, so don't have an audited set of accounts as yet.

They told me that for contractors they require an absolute minimum of 3 years worth of audited accounts regardless of the LTV of the mortgage (ours is fairly low). Talking to a few friends, it appears that they are a notoriously conservative lender and that for contractors Halifax is the only real game in town.

Mortgage hope from Halifax for contract workers | This is Money

[northernladuk]

I would throw RBS in to the fray as seems we are talking about lenders. I have been added to my partners mortgage last year and had a new one from them in the last few months and they didn't raise an eyebrow to my contractor status. Remember they may not know how a contractor works but they do know how small businesses work so approach it that way instead. Might work a bit better rather than confusing them.
Admittedly I had 2 years audited accounts though.

[SueEllen]

Are you sure about this? Last time I spoke to Halifax a year ago about a mortgage I advised I ran a small business and the operator said that was fine they are happy to contact my accountant direct and I also didn't have 2 years to which they said they will take a mix of filed accounts and perm. The process was pretty slick and with no question. I thought they had done a pretty good job of understanding small businesses. Do they understand the concept of lending on daily rate rather than artificially reduced income is a different question.

It always depends on who you speak to so as a rule of thumb I presume they don't understand, so when I find someone who does I'm very happy.

Unfortunately the level of customer service in the UK is so bad small things make me happy.

Anyway back on the thread the only lender I've known contractors have difficulty with is Nationwide.

[d000hg]

Our IFA has an arrangement with Halifax; they will give a formal mortgage offer without doing a credit check which means they typically use them first so you can show an offer of mortgage to the estate agent, and Halifax get business when people can't easily get a better product.

They were very happy to offer some silly amount of money to me based on SA302s alone.

But I think having an [I]FA does make a difference, their trust in you carries some extra weight.