Contractor mortgage....any suggestions who to go with?

[convict]

Power mortgages got me a btl from Clydesdale and a home mortgage from Halifax all in one go and all within 3 weeks just before Xmas. Thoroughly eecommended

[Freelancer Financials]

FLF are OK via Halifax, BUT, as you can see from my previous thread, Halifax want a min of 6 month contract AND the wording in your contract MUST state 5 days a week !!!

The underwriters at Halifax want to see a contract that states the hourly/daily rate, hours and days contracted, Start date and end date. If the contract is within 4-6 weeks of renewal, they can ask for a contract extension.

They will also take contractors who have just started contracting, day one in fact. But they will want to see evidence that you've been working in the same line of work for the past two years. They also don't like to see large breaks between contracts e.g. more than 6 weeks.

If your contract doesn't state the number of days contracted, then you need to provide time sheets and/or bank statements.

[Freelancer Financials]

It isn't as clear cut as that, but that was what I meant by 'depending on circumstances'.

They are very good at looking at all situations so it's not as black and white as a yes or no on XXX circumstances.

EDIT: To clarify, they'll often look into previous work history to back up a shorter contracting period, for example. Ask your broker to speak with an underwriter.

Mark,

DirtyCash did actually state that he's only been contracting for 1 year! So very unlikely that Clydesdale will accept this. They typically want to see a minimum of 2-years contracting history. The only time they'll accept contractors with 1-years contracting history is when the LTV is less than 75% (NOT 90%).

I agree that Clydesdale are very flexible and open minded lender, but I'm quite confident that they won't do this. I believe the Halifax deal is probably the best option based on his circumstances.

[Power Mortgages Ltd]

Mark,

DirtyCash did actually state that he's only been contracting for 1 year! So very unlikely that Clydesdale will accept this. They typically want to see a minimum of 2-years contracting history. The only time they'll accept contractors with 1-years contracting history is when the LTV is less than 75% (NOT 90%).

I agree that Clydesdale are very flexible and open minded lender, but I'm quite confident that they won't do this. I believe the Halifax deal is probably the best option based on his circumstances.

I concur with what you've said there FF, if the OP has contracted for only 1 year then Halifax is likely to be the only option if they are looking for 90% LTV.

However it is 70% Clydesdale will generally not lend above if you have contracted less than 2 years, not 75% but as Mark said, they are a very flexible lender and will look to lend above 70% with less than 2 years contracting in many situations and I have had many cases agreed up to 85% with less than 2 years contracting experience so long as you can generally provide proof of previous employed income (assuming they were employed prior to starting contracting) or if there is a good business reason to lend such as the joint applicant is a permy with a decent income.

At 90% LTV Clydesdale typically want to see 3 years of contracts, not 2 years too and they aren't too flexible on this point either at 90%.

[titan]

Last year, I used Contractor Financials for a 75% LTV mortgage. I had one year of accounts available. I had no problem getting an offer from Halifax for a 2 year fixed rate of 2.74% with fee of £995. They approved a limit of Day rate * 230 * 5 and I really needed only about half this amount for my mortgage.

[Sausage Surprise]

Recommend Ben @ PowerMortgages who did the job for me (with Clydesdale Bank) after 6 months of fannying around with other mortgage brokers.

[northernrampage]

Clydesdale offered me a potential mortgage deal with one year's accounts as well as a 3 month gap in contract last year (I had contracted previously a couple of years back, this was via an umbrella company).

I went via Power Mortgages. They wrote to the underwriters and asked for an exception. This is with a 25% deposit though, not sure what would happen if it's less. I also said I want to buy a flat/house for substantially less in value than I could have gone for with my daily rate (which is what they based the deal off as I only have one year of accounts). The broker said halifax would have considered me if I hadn't had the 3 months off last year.

I haven't been credit checked yet, so this is similar to a mortgage in principle. The whole process was very smooth, didn't have to spend hours on the phone or chase up on anything.

[ssamford]

Who to go with

This is all really good information. I'm going to be looking for a mortgage this July and I'm not sure if it's better using one of these brokers/companies mentioned here or if you can go straight to the banks. What are the general thoughts and who are the good ones to go with?

[Mark McBurney@CMME]

It's virtually impossible to give a blanket answer to that, sadly.

Contact a few brokers, see how they sound to you, and then pick one. They will then fully investigate what is available for your circumstances, and do the research required to come back to you with a concise report on who best to approach and why.

[ssamford]

Thanks

Excellent Mark, thanks for the advice