Are Halifax mortgages contractor friendly?

[sirja]

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 )

Iam in the process of getting a mortgage and have an AIP from the Halifax. Is the 85% LTV@3.69% fixed or variable?

[Scruff]

Iam in the process of getting a mortgage and have an AIP from the Halifax. Is the 85% LTV@3.69% fixed or variable?

The rates and deals change all the time and vary according to your personal risk profile. I would suggest contacting an advisor?

I am not an MA.

[sirja]

The rates and deals change all the time and vary according to your personal risk profile. I would suggest contacting an advisor?

I am not an MA.

I am using ContractorMortgages was just checking to compare. Thanks anyway

[insomniac]

Just to give you my personal experience with Halifax. I called them up directly and they asked me what sort of contracting work I did, and specifically whether I was an "IT contractor".

I told them that I provide consulting services for numerical optimization problems, so I wouldn't classify myself as an "IT contractor".

They told me that in that case, they won't be able to offer me an offer a mortgage, even though I wanted to borrow about 1.5x my annual earnings and am looking at about 50% LTV.

So... lesson learned.

[northernladuk]

Just to give you my personal experience with Halifax. I called them up directly and they asked me what sort of contracting work I did, and specifically whether I was an "IT contractor".

I told them that I provide consulting services for numerical optimization problems, so I wouldn't classify myself as an "IT contractor".

They told me that in that case, they won't be able to offer me an offer a mortgage, even though I wanted to borrow about 1.5x my annual earnings and am looking at about 50% LTV.

So... lesson learned.

Did you ring them back and tell them you are a director of a small company without getting in to the details. They must give mortgages to directors. Maybe a case of being a bit too honest?

[SueEllen]

Just to give you my personal experience with Halifax. I called them up directly and they asked me what sort of contracting work I did, and specifically whether I was an "IT contractor".

I told them that I provide consulting services for numerical optimization problems, so I wouldn't classify myself as an "IT contractor".

Even though you don't class yourself as an IT contractor would others like your clients' HR claim you are?

The reason I'm asking this question is that it's made very clear from getting everything from car insurance to credit cards you need to classify yourself in what others see you as not what you think you should be classified at.

As long as you aren't clearly misrepresenting yourself for example claiming you are a property developer when you are clearly a landlord, then you will not have any problems.

[insomniac]

Understood, and I think it's something I will find out.

Also rather than approaching Halifax directly, I think I'll go through ContractorMortgagesUK, my accountants recommend them.

[redgiant]

I had no problem going direct with Halifax. As others have said they seem to be familiar with how contractors finances operate and were happy to give me a 2yr fixed mortgage when it came to re-mortgaging my London pad.

[titan]

I have just one year of accounts and I recently applied for a mortgage using one of the specialist contractor mortgage brokers. I went for a 75% LTV 25 year mortgage and have now obtained an offer from Halifax. It is a 2.74% fixed rate for two years and then variable (3.99% currently). There is a £999 product fee and a £265 mortgage amount fee that can be added to the borrowed amount. And there is a £565 valuation fee to be paid upfront to Halifax.

I had contacted two contractor mortgage brokers to see what was on offer. Both recommended the above deal but the one I ended up using charged no fees from me while the other wanted £695 for pretty much the same service. So no surprises as to who I went with. The whole process was surprisingly straightforward and quick. I was only asked for a copy of my ongoing contract and was told that I could borrow upto five times the annualized value of my contract (effectively 5 * 230 * daily rate). I actually ended up needing to borrow just over half the amount I was eligible to borrow as per this criteria. I would whole heartedly recommend this channel of mortgage application to any contractor wishing to take out a mortgage. At the very least, it certainly does no harm to at least see what deal you get from them. As mentioned, I was not charged any fee as they get paid commission by the lender.

[JennaB]

lenders other than halifax?

Our mortgage broker called them a couple of months ago and we were told we were ok with one years accounts showing salary and divs. They wanted CV as well to show I had been doing same thing for a while.
We pulled out in the end so I don't know whether it would have gone through ok. I'd be interested to know of other lenders who are ok with contractors for the next time.