MMR - Getting a mortgage whilst on the bench?

[rocktronAMP]

Hello

I have been contracting again since January 2013. Unfortunately, my last gig came to end a couple of weeks ago, so I am on the bench.

I am selling my house and last week I put an offer on another house, which was accepted, then I went looking for mortgage. I was caught off guard when the mortgage consultants / advisors (a couple of the high street lenders, a contractor mortgage specialist company, a few IFAs) told me that I need a current income in order to prove to the mortgage lender that I can qualify.

madmad Mortgage Maker Reviewer


Has an contractor on the bench managed to get a mortgage?

PS: The answer is yes. Currently, I am urgently looking for my next gig. I am sending emails to recruitment agents and ex co-workers, calling out on my network, doing linked-in mails on my connection just to secure the next contract gig as soon as possible.

[Jack Kada]

Hello

I have been contracting again since January 2013. Unfortunately, my last gig came to end a couple of weeks ago, so I am on the bench.

I am selling my house and last week I put an offer on another house, which was accepted, then I went looking for mortgage. I was caught off guard when the mortgage consultants / advisors (a couple of the high street lenders, a contractor mortgage specialist company, a few IFAs) told me that I need a current income in order to prove to the mortgage lender that I can qualify.

madmad Mortgage Maker Reviewer


Has an contractor on the bench managed to get a mortgage?

PS: The answer is yes. Currently, I am urgently looking for my next gig. I am sending emails to recruitment agents and ex co-workers, calling out on my network, doing linked-in mails on my connection just to secure the next contract gig as soon as possible.

I think it depends on whether you have two years accounts does it not? ANyway why not try a mortgage broker for a definiteive answer?

[BolshieBastard]

Hello

I have been contracting again since January 2013. Unfortunately, my last gig came to end a couple of weeks ago, so I am on the bench.

I am selling my house and last week I put an offer on another house, which was accepted, then I went looking for mortgage. I was caught off guard when the mortgage consultants / advisors (a couple of the high street lenders, a contractor mortgage specialist company, a few IFAs) told me that I need a current income in order to prove to the mortgage lender that I can qualify.

madmad Mortgage Maker Reviewer


Has an contractor on the bench managed to get a mortgage?

PS: The answer is yes. Currently, I am urgently looking for my next gig. I am sending emails to recruitment agents and ex co-workers, calling out on my network, doing linked-in mails on my connection just to secure the next contract gig as soon as possible.

Yep. I got my bank to give me a rapid repay mortgage (a similar product to a contractor mortgage) when I was between contracts.

That said, I'd been with my bank since I was a young lad and had been contracting for 7 or 8 years. Plus this was pre financial crash days.

[rocktronAMP]

I think it depends on whether you have two years accounts does it not? ANyway why not try a mortgage broker for a definiteive answer?

Like who? I thought contractormortgageuk.com were one of those?

"His advice was correct; a lender cannot look to lend you funds to buy a property if you currently have no provable means (in the lender’s eyes) of ongoing income to pay the mortgage successfully every month. This applies to any applicant, whether employed or a contractor.

When you are back in contract, please contact us and we can see if we can then help" contractormortgageuk.com email response

[rocktronAMP]

I think it depends on whether you have two years accounts does it not? ANyway why not try a mortgage broker for a definiteive answer?

Unfortunately, I don't have 2 years of account yet, because my first contract gig was January 2013. Damn!

Also, I am using an umbrella company, which complicates the minds of the high street lenders. Believe me, I did my very best to explain my situation to the mortgage consultants yesterday and the day before.

[MaryPoppins]

I can't see many lenders, even contractor savvy ones, considering you as a reasonable risk.

[Power Mortgages Ltd]

I can't see many lenders, even contractor savvy ones, considering you as a reasonable risk.

Unfortunately MP is correct. If you contract through an Umbrella Company and do not currently have a contract then you will not be able to obtain funding.

The good news is that as soon as you have a new contract you should be fine so long as there isn't too much of a gap between your previous contract ending and the new one starting.

[JRCT]

Unfortunately MP is correct. If you contract through an Umbrella Company and do not currently have a contract then you will not be able to obtain funding.

The good news is that as soon as you have a new contract you should be fine so long as there isn't too much of a gap between your previous contract ending and the new one starting.

I can understand why having no current contract would affect an application, but why should going through an Umbrella?

[eek]

I can understand why having no current contract would affect an application, but why should going through an Umbrella?

Because it closes a few routes (director, company history....).

A contractor using an umbrella is an employee of that umbrella company / consultancy.

A contractor using a limited company is a company director.

[Taita]

Hello

I have been contracting again since January 2013. Unfortunately, my last gig came to end a couple of weeks ago, so I am on the bench.

I am selling my house and last week I put an offer on another house, which was accepted, then I went looking for mortgage. I was caught off guard when the mortgage consultants / advisors (a couple of the high street lenders, a contractor mortgage specialist company, a few IFAs) told me that I need a current income in order to prove to the mortgage lender that I can qualify.

madmad Mortgage Maker Reviewer


Has an contractor on the bench managed to get a mortgage?

PS: The answer is yes. Currently, I am urgently looking for my next gig. I am sending emails to recruitment agents and ex co-workers, calling out on my network, doing linked-in mails on my connection just to secure the next contract gig as soon as possible.

I have been out of the house market for years but this approach still seems weird to me. Surely people usually secure the finance (in principle) before making an offer for a house?