Reply to: To mortgage specialists -5 years fixed term

[Mark McBurney@CMME]

Hopefully, but I'll be happy if we've only exchanged and complete after Xmas as that's all we need to support our school application.

Brilliant, hopefully it all goes smoothly

[TheCyclingProgrammer]

Great news!

In by christmas?

Hopefully, but I'll be happy if we've only exchanged and complete after Xmas as that's all we need to support our school application.

[Sausage Surprise]

I'm no expert but I'd have thought you'd always get a better rate if you can apply for a mortgage on normal "self-employed" terms (lenders usually treat company directors of close companies as "self-employed") as its based on a more accurate reflection of your earnings, averaged over multiple years with accounts to back it up. Whereas a "contract mortgage" based on daily rate is potentially more risky - a £600/day rate means nothing if you're contract gets binned tomorrow.

Some lenders use different criteria for company directors - some will look at salary + dividends, some will look at salary + (company net profit * shareholding) - and over different years. When I got a (now expired) MIP from Virgin Money, I think they just used my salary + company net profit for the last year (my company shares are split 75/25 between my wife and I but as its a joint application they considered 100% of net profit) but they needed at least 2 years of accounts to check that profit was increasing.

I highly recommend Ben @ Power Mortgages if you want a second opinion - he's been incredibly helpful for me and is currently in the process of getting our second MIP (we are still house hunting).

FWIW, 2.99% fixed for 5 years sounds like a pretty good deal to me. For comparison, the best deal Ben has found me (and I haven't found any better) for a mortgage in the region of £200-230k at 80% LTV is 2.49% on a 2 year fix.

Did the biz for me too

[Mark McBurney@CMME]

You're right...we just had an offer accepted on a 4 bed semi

Great news!

In by christmas?

[Freelancer Financials]

You're right...we just had an offer accepted on a 4 bed semi

Congratulations!

[TheCyclingProgrammer]

It'll happen, these things always happen when we least expect it!

You're right...we just had an offer accepted on a 4 bed semi

[Freelancer Financials]

Too right!! Bring it on!!!

Hi Northernladuk, You'd all love that wouldn't you! I think that's enough entertainment for one day!

I've made my point, time to move on...

[northernladuk]

Utterly incorrect. We love people airing their dirty washing in public

Too right!! Bring it on!!!

[eek]

Hi John,

Since you've PM'd me about this, I think we should probably leave this thread here, I'm not sure the rest of Contractor UK are that interested in this conversation.

Regards,

Mark.

Utterly incorrect. We love people airing their dirty washing in public

[Antman]

[Mark McBurney@CMME]

The go ahead for what? Be specific? And just because the other company mentioned it on their web site doesn't make them right either. It's a PILOT that's been running since August and you know that, so be mindful of what you say.

You've just made a very bold statement on this forum that "it isn't a trial and the contractor based underwriting policy is for public consumption". You better check that with Sat Singh (your MD). Because your absolutely wrong.

I challenge you to find an announcement from Leeds B.S stating that they are now offering mortgages based on contract rate alone? I guarantee you won't find one. Because it is a pilot in its very early stages.

I believe an apology is due.

John

Hi John,

Since you've PM'd me about this, I think we should probably leave this thread here, I'm not sure the rest of Contractor UK are that interested in this conversation.

Regards,

Mark.

[Freelancer Financials]

Hi John,

We have the go ahead, and the other company in question mention this on their website also, so it isn't a trial and it certainly is for public consumption.

I hope you're well.

Mark

The go ahead for what? Be specific? And just because the other company mentioned it on their web site doesn't make them right either. It's a PILOT that's been running since August and you know that, so be mindful of what you say.

You've just made a very bold statement on this forum that "it isn't a trial and the contractor based underwriting policy is for public consumption". You better check that with Sat Singh (your MD). Because your absolutely wrong.

I challenge you to find an announcement from Leeds B.S stating that they are now offering mortgages based on contract rate alone? I guarantee you won't find one. Because it is a pilot in its very early stages.

I believe an apology is due.

John

[Mark McBurney@CMME]

Mark, exclusive access to contractor criteria with Leeds. You know this is a PILOT, not for public consumption. That means that it's not meant to be advertised or promoted anywhere. Well done mark!

Hi John,

We have the go ahead, and the other company in question mention this on their website also, so it isn't a trial and it certainly is for public consumption.

I hope you're well.

Mark

[Freelancer Financials]

Well worth a chat with a few brokers - us and one other for example have exclusive access to contractor criteria with Leeds Building Society, as an example, so there are differences between brokers.

Good luck!

Mark, exclusive access to contractor criteria with Leeds. You know this is a PILOT, not for public consumption. That means that it's not meant to be advertised or promoted anywhere. Well done mark!

[Mark McBurney@CMME]

Thank you everyone. The 2.99% is from Abby(Santander) as self-employed applicant instead of contractor. One problem is I got a year gap (2012-2013). Although I still withdrew same amount of salary and dividend, my company account showed the profit that year was next to nothing. Will that affect my application? My local adviser said it would not, but another contractor mortgage adviser I spoke to said it would affect my application and they could not get me anything on self-employed terms. Who shall I listen to?

Well worth a chat with a few brokers - us and one other for example have exclusive access to contractor criteria with Leeds Building Society, as an example, so there are differences between brokers.

Good luck!