Has anyone tried to get a mortgage lately? Has the mortgage market for contractors dried up?
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I'd love to know. It was easy in February but we pulled out of our purchase.Originally posted by Mappy View Post -
I got one in February and it was not easy then, but I had been with HSBC/First Direct for many years. They accepted only two years of accounts and a letter from my accountant. Reduced my rate from 7.8 SVR with Abbey to 5% tracker offset.
Effectively 750 quid a month down to 260 quid !!
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Just for historical purposes: I managed to get a mortgage back in '95 as a contractor, after working in the UK for only 6 months.
It wasn't easy, there was a little bit of 'bending' the truth slightly, and the use of 'Wendy' with the big assets to distract the bank guy long enough to sign the application, but managed it.
Basically all you need to do is tell the bank that the Ltd Company you work for is an international company and you are a 'Manager' (create any title you like in one of your directors meetings), then (in the same meeting) set your salary at the required level, say, 80k). Employee someone you know as the CIO (and make them director), create a letterhead, get the CIO to verify your earnings in a letter to the bank on company letterhead, and wullah!
Once you have the mortgage you have a moral obligation to notify the bank of any change in circumstances but not a legal obligation, so once the mortgage is signed you have another board meeting and go back to your original title of Director and orginal salary, and sack the CIO (after they have transferred the directorship back to you).
Oh pays to rename your company as something sounding foreign...Comment
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I got a 95% mortgage via BOS in August. I guess its about 125% of valuation now!
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