Reply to: Halifax Limited Time Exclusive Mortgage Offers

[Power Mortgages Ltd]

2.99% 90% LTV rate being pulled imminently, possibly as soon as this evening.

It is 8pm this evening. Applications have to be submitted by then.

Being replaced by rates 0.20% higher which are still market leading but obviously if you can get in before 8pm today you'll be 0.20% better off!

[Mark McBurney@CMME]

2.99% 90% LTV rate being pulled imminently, possibly as soon as this evening.

[Power Mortgages Ltd]

I dont suppose if you've been renting for a few years you go back to First Time buyer status? I've been renting for the last 4 years but feeling the need to buy now... What the best 90% rate around?

With some lenders you do, with others you don't. Unfortunately Halifax fall into the category of don't.

With a 10% deposit the best rate on the market is a variable rate of 2.79%, the best fixed for non first time buyers is 3.65% and the best rate from a lender who will take contract rate annualized is 3.79% which is fixed.

[Underscore Pt2]

I dont suppose if you've been renting for a few years you go back to First Time buyer status? I've been renting for the last 4 years but feeling the need to buy now... What the best 90% rate around?

[Jack Kada]

Barclays/Woolwich are contractor friendly. 3.49% for a 10-year fix is pretty good (depending on your best guess about where rates might end up).

This gives you an idea of what the UK yield curve looks like. Low rates for the next decade. If you can borrow money at rates like 0.99% which I must say is unheard of (at least for someone like me) then you can imply one of two things:

1) Banks being flooded with cash desperate to get it out of their doors
2) Too much cash being saved by Joe Public and savings rates of 0.1% continue to attract savers stashing cash
3) The market concerend about defaltion and collectively indicating that savers are happy with getting no return on their savings because deflation will cushion them

My personal opinion is (1) although there is deflation happeninng at the wage level

[jamesbrown]

Some other interesting offers being launched but probably less contractor friendly!

UK mortgage battle hots up as banks prepare to slash rates | Money | theguardian.com

Barclays/Woolwich are contractor friendly. 3.49% for a 10-year fix is pretty good (depending on your best guess about where rates might end up).

[morf]

Some other interesting offers being launched but probably less contractor friendly!

UK mortgage battle hots up as banks prepare to slash rates | Money | theguardian.com

[swebb]

Thanks for all this really useful info. I'm currently thinking about buying my first home, never had a mortgage before and have anywhere between 70-90% of the property value in cash and isa's depending on what I buy.

It looks like there are some good deals around for 1st time buyers

I was considering an offset mortgage seeing as I have a fair amount of cash and also Barclays allow ISA's to be included in the offset, but with rates in the 2% or lower bracket I'm now thinking as a first time buyer I should just put a hefty deposit down and take out one of these low rate mortgages instead.

[Jack Kada]

It does help, thanks. I had a few months off at the beginning of this year so I might wait until the new year, hopefully with another 6 months extension ahead of me before applying. Just hope the good deals are still around.

There is talk this weekend about a 0.99% 2 year fixed from HSBC. That requires 40% deposit but if it is correct then that is almost incredible. You are able to borrow money at below the rate of inflation. Think about that for a minute

[Bunk]

They will look at it on a case by case basis. Typically the rule is no more than 2 months in the last 1-2 years but it depends the reasons behind the gaps, when the gaps were, how long you have been contracting for without a gap now and finally how long remains on your contract.

If you have been contracting a number of years that will go in your favour too compared to say, starting contracting 1 year ago and having 2-3 months out after your first contract then securing a second contract which you are on now.

The difficulty is that Halifax wouldn't know the gaps you took were out of choice rather than a contract coming to an end and you not finding a new one for a few months but contractor friendly lenders do appreciate you guys don't get holidays like permy counterparts so do tend to take time off after contracts come to an end to make up for this especially where you have the money to do so.

If you have been contracting for a while and it's through your own Limited Company remember you may be able to prove your income via your accounts. Some lenders will look at salary and dividends only but others can work from the net profit (after tax) figure plus your salary and there is even a few who could work from the net profit before the deduction of corporation tax plus your salary. That way they are assessing you as a Limited Company Director, not a contractor so gaps in contract wont be an issue at all.

Hope that helps?

Ben

It does help, thanks. I had a few months off at the beginning of this year so I might wait until the new year, hopefully with another 6 months extension ahead of me before applying. Just hope the good deals are still around.

[Power Mortgages Ltd]

Hi PM Ltd

I'm sure I read somewhere that Halifax don't like gaps on your CV. Do you know how strict they are about that? I've taken breaks in the past, of a few months every couple of years or so, but I wouldn't be doing that once I had a mortgage. Is it likely to be a problem?

They will look at it on a case by case basis. Typically the rule is no more than 2 months in the last 1-2 years but it depends the reasons behind the gaps, when the gaps were, how long you have been contracting for without a gap now and finally how long remains on your contract.

If you have been contracting a number of years that will go in your favour too compared to say, starting contracting 1 year ago and having 2-3 months out after your first contract then securing a second contract which you are on now.

The difficulty is that Halifax wouldn't know the gaps you took were out of choice rather than a contract coming to an end and you not finding a new one for a few months but contractor friendly lenders do appreciate you guys don't get holidays like permy counterparts so do tend to take time off after contracts come to an end to make up for this especially where you have the money to do so.

If you have been contracting for a while and it's through your own Limited Company remember you may be able to prove your income via your accounts. Some lenders will look at salary and dividends only but others can work from the net profit (after tax) figure plus your salary and there is even a few who could work from the net profit before the deduction of corporation tax plus your salary. That way they are assessing you as a Limited Company Director, not a contractor so gaps in contract wont be an issue at all.

Hope that helps?

Ben

[Bunk]

Hope that helps!

Hi PM Ltd

I'm sure I read somewhere that Halifax don't like gaps on your CV. Do you know how strict they are about that? I've taken breaks in the past, of a few months every couple of years or so, but I wouldn't be doing that once I had a mortgage. Is it likely to be a problem?

[Power Mortgages Ltd]

Any decent buy to let mortgages out there at the moment?

Yes, depending upon circumstances there are some pretty good rates out there. Clydesdale Bank who are a contractor friendly lender who also offer buy to let mortgages have just today reduced their rates. They have arrangement fee free options too which often work out better compared to a number of other options where you have to pay an arrangement fee.

They also offer free legal fees and valuations for remortgages too on their buy to lets which few buy to let providers offer.

[Power Mortgages Ltd]

I'm almost tempted to get a mortgage.

One thing I've wondered -

Our mortgage is paid off. If I wanted to, for example, buy a flat for one of the kids to live in, or possibly to rent out, is it feasible to take out a mortgage against our house, or would they want to know what I intend to spend the money on?

Yes, that is perfectly fine. They wouldn't have any concerns with you using the money to purchase another property for your children to reside in or if you wished to let the property out.

[Power Mortgages Ltd]

What's the 'exclusive' element you're referring to? Applications via Power Mortgages? Or rates not available via any other group brands? Or summat else?

It is available via a select number of mortgage brokers and mortgage networks/clubs. You wont find these offers in branch for example.