How much can i borrow on my next property?

[DirtyCash]

The usual sales pitch says 1200 times my day rate, but I suspect that there is a wider market if i have a 25% deposit and 4 years of company accounts. For reference my usual day rate is 400 and under the 1200 rule i can only borrow 480k when i need 540k for my dream home.

I know i could try and get a better day rate, but i'd like to see if anyone else has used a 'whole of the market' mortgage broker instead of a 'contractor broker'.

[CloudWalker]

i can only borrow 480k

[northernladuk]

Nope cause I am a contractor and most of them wouldn't take a day rate and my standard income calculations considerably reduced my borrowing potential. Normal brokers didn't understand my situation so couldn't offer me a decent service. That's why we have contractor brokers.

[vadhert]

You could increase your day rate

[sal]

Have even tried speaking to a broker?

Alternatively you can sell a kidney to cover the difference.

[eek]

So glad I live up north....

[slice16]

My agreement in principle offered me the following formula:

(Day Rate * 5)* 46 Weeks * 4 Years... So a pretty decent amount. Make sure you go to a broker who specialises in Contractor Mortgages. Mine is currently going through with Contract Financials and they have been amazing.

And move up North, so much more for your money!

[Pondlife]

The usual sales pitch says 1200 times my day rate, but I suspect that there is a wider market if i have a 25% deposit and 4 years of company accounts. For reference my usual day rate is 400 and under the 1200 rule i can only borrow 480k when i need 540k for my dream home.

I know i could try and get a better day rate, but i'd like to see if anyone else has used a 'whole of the market' mortgage broker instead of a 'contractor broker'.

Where do you get 1200 times day rate?

1200 would be 240 days a year x five years. Seems to be the riskier end of the scale esp considering you're a contractor.

[TheFaQQer]

When I was looking last summer, Halifax gave me a decision in principle of just over 1000*daily rate. I don't know how they came up with that figure though.

[Martin@AS Financial]

The usual sales pitch says 1200 times my day rate, but I suspect that there is a wider market if i have a 25% deposit and 4 years of company accounts. For reference my usual day rate is 400 and under the 1200 rule i can only borrow 480k when i need 540k for my dream home.

I know i could try and get a better day rate, but i'd like to see if anyone else has used a 'whole of the market' mortgage broker instead of a 'contractor broker'.

As a contractor, you are in a very fortunate position. Generally speaking, lenders do not understand self employed clients.

However, as a contractor, you get 2 bites of the cherry when it comes to applying for a mortgage. You can either work off your salary and dividend or salary and net profit depending on which lender you approach. A few lenders will also consider retained profit if they feel the case is strong enough.

Obviously, there is also the more contractor friendly route which works off the daily rate which you have already discussed.