Mortgages question: I might have screwed it up...

[SueEllen]

I gave up on the high street after my own bank declined me as they couldnt understand the difference between company earnings and my actual salary + dividend so would only lend me 75k (i leave a warchest in the company so i can pay the mortgage if im not working) and the second declined me as my income had gone down from the previous year (becuase the year prior I had a divorce to settle and needed to pay lawyers and took dividends which put myself into the 40% bracket).

Some on the high street i.e. Halifax, Virgin Money now understand about the different forms of self employment but want 3 years accounts, while others i.e. Nationwide just don't want us.

It also doesn't matter if you bank with them or not as a lot have tightened up their lending criteria as they simply don't want to lend to certain customers.

[Martin@AS Financial]

Hi all

I've been contracting for 4 years and had accounts for all of those years, getting a mortgage in principle from a regular lender was no problem last summer. Anyway that house sale fell through and I've since wound my company up for reasons I won't bore you with, which was my mistake as I have unwittingly reset the self employed for x years back to zero.

I've just got a new contract so I am trying to find a way around this, would working under an umbrella company mean I could get a mortgage within a couple of months rather than years?

I'm looking at buy to let mortgages btw.

Any help / advice massively appreciated!

Subject to credit score and overall borrowing, there are still one or two lenders who will consider this based on the rental income and not your personal income.