• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Mortgages

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #31
    Had a long chat with John Yerou at Freelancer Financials about this yesterday as mine aren't far off renewal. It appears there has certainly been a worrying shift in attitude from the lenders in the last year so it appears it's going to be tougher for the more complex cases going forward with some lenders going cold on contractor/self employed mortgages. Others that appear to be wanting to get rid altogether by greatly reducing the income to lend ratios and the like.

    If you can get a good deal with your existing lender then happy days but more complex situations like high LTV or gaps in contract are going to need to some help.

    The changes in April aren't going to help but I do believe the existing lenders will consider contract rate for inside gigs not net income which is a relief. I imagine quite a few people will get caught out with affordability if they don't budget proper or get stuck inside for long periods.

    Odd times.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #32
      This has been going on for some time - I remember Halifax introducing caps on lending multiples to 4 times on loans over 500K a few years ago.

      In the past pre 2015 they use to take day rate * 48 weeks * 5 as your annual income and you could really borrow 750K without much more than a signed contract - Those days are gone from what I see and read on a few forums

      Comment


        #33
        Originally posted by Eirikur View Post
        Ok finally found a mortgage provider that is willing to lend me what I need, Santander in my case.
        An update, made an offer on a property, was accepted went back to the mortgage advisor to finalise the mortgage and it was now rejected as I had no contract for a few months due to Covid last year, now I have to show last three months with continuous Ltd company income on bank statements. Have only one so far, so have to wait another two months at least for them to reconsider, so I have to withdraw my offer and take my own house (which also had an offer for full asking price on it) off the market.

        Comment


          #34
          Originally posted by Eirikur View Post
          An update, made an offer on a property, was accepted went back to the mortgage advisor to finalise the mortgage and it was now rejected as I had no contract for a few months due to Covid last year, now I have to show last three months with continuous Ltd company income on bank statements. Have only one so far, so have to wait another two months at least for them to reconsider, so I have to withdraw my offer and take my own house (which also had an offer for full asking price on it) off the market.
          Different lenders have different criteria. Some need 3 months left on the contract, some won't accept breaks over x months and that x varies. This is why a mortgage broker becomes priceless.

          Give Freelance Financials a call and see if they are aware of any providers that will accept the issues that yours didn't like.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #35
            Originally posted by northernladuk View Post
            Looking at the current climate this bit will have not just helped but be absolutely key to it going smoothly. Being a low risk equity rich client is mana for heaven for them so will be no surprise it's been a breeze. It's just people in slightly more complex situations they seem to be letting down at the moment.
            I hope so - I'm due for remortgaging end of this year and my LTV should hopefully be around 40% or less. I had a 6 month break in 2017 but hoping that won't be too big a factor. I used Contractor Mortgages Made Easy before and they were pretty good at finding me a go deal. I was offered a mortgage of 4.5 x 48 x 5 x day rate back then - seems mad in hindsight.

            Comment


              #36
              Originally posted by edison View Post
              I hope so - I'm due for remortgaging end of this year and my LTV should hopefully be around 40% or less. I had a 6 month break in 2017 but hoping that won't be too big a factor. I used Contractor Mortgages Made Easy before and they were pretty good at finding me a go deal. I was offered a mortgage of 4.5 x 48 x 5 x day rate back then - seems mad in hindsight.
              Yeah CMME are another one. They merged with the other one that used be suggested but I forget who they are. Whoever it is, with breaks and other complexities a broker can prove their worth.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #37
                Originally posted by northernladuk View Post
                Yeah CMME are another one. They merged with the other one that used be suggested but I forget who they are. Whoever it is, with breaks and other complexities a broker can prove their worth.
                Contractor Financials?

                Comment


                  #38
                  Originally posted by Eirikur View Post
                  An update, made an offer on a property, was accepted went back to the mortgage advisor to finalise the mortgage and it was now rejected as I had no contract for a few months due to Covid last year, now I have to show last three months with continuous Ltd company income on bank statements. Have only one so far, so have to wait another two months at least for them to reconsider, so I have to withdraw my offer and take my own house (which also had an offer for full asking price on it) off the market.
                  Sorry to hear this. Santander (like many other banks at the moment) are very nervous of self employed clients at the moment and require a 40% deposit at the moment I believe unless you are a existing mortgage holder with them.

                  Comment


                    #39
                    Originally posted by Martin@AS Financial View Post
                    Sorry to hear this. Santander (like many other banks at the moment) are very nervous of self employed clients at the moment and require a 40% deposit at the moment I believe unless you are a existing mortgage holder with them.
                    My deposit would have been 62%, (confirmed offer on curent property + savings) excellent credit rating, never missed a payment in my life, still no lenders that would take me on for more then a couple of grands

                    Comment


                      #40
                      Originally posted by Eirikur View Post
                      Any other contractor here finding it difficult to get any substantial mortgage at the moment?
                      Halifax is not looking at day rates and contract length anymore, only last two tax years of self assessments
                      CMME says it's tulip at the moment, especially when you have a gap in company income due to COVID in the last couple of months.
                      Best I was quoted so far is 1/3d of what I was quoted 18 months ago.
                      Anyone who knows a lender who is still a bit flexible?
                      YBS just gave me an AIP mortgage of far more than I'd ever borrow.
                      Based purely on PAYE and dividends.

                      They weren't interested in the retained profit. And very unhappy when I said I'd use DLA to fund a 20% deposit. I thought that was odd as I could easily take the cash as "dividends" and then convert to DLA after completion.
                      See You Next Tuesday

                      Comment

                      Working...
                      X