Contractor mortgage with first year completed, 70% LTV

[northernladuk]

Not sure what problems you had with Contractor Money, DeludedAussie. I used them this year and they were better than any of the others I tried. I initially tried an independent broker and then tried Contractor Money and one other specialist provider, CM came back cheaper (no arrangement fee on top of their commission like the other provider wanted to charge me) and everything was sorted out very quickly. I have no concerns in recommending them.

We are talking about DeludedAussie here.....

[Freelancer Financials]

Just thought I would update all those contractors who happen to stumble on this thread. The mortgage market has improved significantly for contractors since 2012. Many more lenders are now willing to assess contractors affordability based on their daily/hourly contract rate.

This means that you don’t have to rely on the traditional method of using accounts, pay slips or tax returns, which is unlikely to reflect the total earnings that you have at your disposal for income verification on a mortgage application.

But check first with a Contractor Mortgage Broker, whether you qualify. Some lenders like Halifax will also consider one year's accounts.

[d000hg]

Just completed first year's accounts and it’s now time to re-mortgage. I thought, I have found good rate of 2.99% for 70% LTV fixed for 4 years with Nationwide. But they need at least 2 years accounts... DAMN!

I didn’t knew this before, maybe I was really ignorant..

So far talked to ContractorMortgagesUK, they charge £495 as their fees, which I think is really high.
What other options do I have? Does this mean that I will need to get a higher rate mortgage being a contractor or I can still get 2.99 as with Nationwide? Please help...

1)In your position it's not about trying to get the BEST mortgage, it's about trying to get A mortgage. Part of being a contractor, you have to pay a bit more.
2)Why is your broker charging fees, not getting commission from the lender?

[Freelancer Financials]

1)In your position it's not about trying to get the BEST mortgage, it's about trying to get A mortgage. Part of being a contractor, you have to pay a bit more.
2)Why is your broker charging fees, not getting commission from the lender?

"It's about trying to get a mortgage? Part of being a contractor, you have to pay more". Not True, maybe in the past, when many contractors applied for self-cert mortgages.

Contractors can now obtain competitive rates from high street lenders based on their contract rate or accounts. A number of lenders like Halifax and Woolwich will accept one year's accounts. Many lenders today will also consider retained profits as well as salary and dividend drawings. Lenders such as Halifax, Clydesdale, Virgin, Skipton will lend to contractors based on their contract rate. These lenders do not charge contractors more. Yes, it's difficult if you go direct but there are Contractor Mortgage Specialists that will do all the leg work for you.

[No2politics]

Contractor mortgage with first year completed, 70% LTV

Hello. When comparing mortgages I wouldn't get too caught up in the size of the fee. It's usually possible to just add the fee to the mortgage balance. Therefore the fee is only one component of the cost, you need to consider both the fee and the apr. the more you are looking to borrow, the more important the apr is. I use this spreadsheet to compare deals
http://forums.moneysavingexpert.com/....php?t=1157173