Best flexbile contractor mortgages

[d000hg]

monthly mortgage commitments is where you would enter the monthly payment of any mortgages which will remain in place (buy to lets in the background or second home mortgages for example), do not enter what your current mortgage payments are here

Oops

Thanks again.

[Power Mortgages Ltd]

Thanks Mark. I must be misunderstanding that page - probably the bottom section which seems to ask for information already entered about mortgage payments, and asks for the loan amount when the point is to TELL me the loan I can have - as it suggests a recommended loan of £12k for someone on a salary of £31k with no credit card debts. 0.5 isn't a great multiplier

Assuming no children, one person on the mortgage, no other commitments and a term of 25 years then the figure you should have got is £155,000.

Enter the income of £31,000 in the top left box (basic annual income before tax), the expenditure section is the next section to look at:

monthly credit commitments is where you should enter details (monthly payment) of any loans, hire purchase agreements, lease agreements or child care costs which will remain after completion of the mortgage monthly mortgage commitments is where you would enter the monthly payment of any mortgages which will remain in place (buy to lets in the background or second home mortgages for example), do not enter what your current mortgage payments are here (if you are redeeming that mortgage to replace it with this new one) as the system will double count them. Total credit cards is self explanatory but you mentioned there are none of them so leave those blank, amount to be consolidated leave blank as that relates to the credit card balances which you don't have.

In the section below, I always default to 'C' under anticipated credit score to give you a worst case scenario but often there isn't any difference between a C score and an A score.

Number of adults party to the mortgage is how many people will be named on the mortgage and then enter the number of dependent children below. Change the loan term accordingly depending upon the number of years you wish to take the mortgage over and put any random figure in the loan amount screen. This figure doesn't really matter as when you click update result it will display how much you can borrow as a maximum regardless of what figure you enter there. Don't worry about property type, interest only amount or monthly premium paid as that relates to interest only.

Hope that helps?

[d000hg]

Thanks Mark. I must be misunderstanding that page - probably the bottom section which seems to ask for information already entered about mortgage payments, and asks for the loan amount when the point is to TELL me the loan I can have - as it suggests a recommended loan of £12k for someone on a salary of £31k with no credit card debts. 0.5 isn't a great multiplier

[Mark McBurney@CMME]

What's a typical maximum permie salary multiplier on a decent mortgage, at a sensible LTV like 75%?
We're attempting to aggressively overpay our mortgage so that we reach the point we can get a mortgage based on Mrs. d000hg's salary with little or no weighting from my work. But that plan very much depends on the multiplier they'll use.

Hi d000hg,

The vast majority of lenders have moved away from any defined income multiples now, instead using affordability calculators (like Halifax's here...).

Generally speaking though 5x is about the limit.

Thanks

Mark

[d000hg]

What's a typical maximum permie salary multiplier on a decent mortgage, at a sensible LTV like 75%?
We're attempting to aggressively overpay our mortgage so that we reach the point we can get a mortgage based on Mrs. d000hg's salary with little or no weighting from my work. But that plan very much depends on the multiplier they'll use.

[Mark McBurney@CMME]

On a slightly different note, what is the best 75% LTV BTL mortgage out there that can work off a current contract or just a year's accounts?

In terms of 1yr accounts, you're limited to a handful for BTL, BM Solutions will take one SA302 if they evidence income (which they rarely do if you're not a first time landlord) and Precise and Kent Reliance will both underwrite on one year of accounts however their rates are not exactly market leading.

On contractor policy, the only lenders at present who will consider are Clydesdale Bank and Kensington. I'd recommend you avoid Kensington at all costs if at all possible, their service is absolutely woeful.

Clydesdale's best 75% LTV product is currently a 2yr fixed rate, at 3.19%, with a £1,999 fee. There is a fee-free option at 3.69% which could potentially work out better value with a lower mortgage balance.

Best wishes

Mark

[ChimpMaster]

On a slightly different note, what is the best 75% LTV BTL mortgage out there that can work off a current contract or just a year's accounts?

[TechJinx]

Thank you for the feedback TechJinx, I'm delighted that we could help you.

hadn't realised that was who you were from when I posted that!

[Mark McBurney@CMME]

secured a mortgage only a couple of months into contracting back in June - these guys helped out and did all the work

Mortgages for Contractors and Freelancers Made Easy

that was with a "full time" contract though. Might be worth a call as they'll do the talking to underwriters for you. Cost me £600 odd but worth it to avoid the headaches and get the mortgage with no hiccups. I believe it was "no mortgage no fee" so nothing to lose

Thank you for the feedback TechJinx, I'm delighted that we could help you.

[TechJinx]

secured a mortgage only a couple of months into contracting back in June - these guys helped out and did all the work

Mortgages for Contractors and Freelancers Made Easy

that was with a "full time" contract though. Might be worth a call as they'll do the talking to underwriters for you. Cost me £600 odd but worth it to avoid the headaches and get the mortgage with no hiccups. I believe it was "no mortgage no fee" so nothing to lose

[Mark McBurney@CMME]

I've been accepted a mortgage with Halifax based on having an on going contract in place, they calculate your day rate and secured weeks, so in my case 4 weeks worth of £250 per day.

My long term contract is coming to an end now and I'm more than likely going to back to scraps of freelance work which show nothing.

I only have 6 months worth of accounts in place since I set up as a Ltd but have some hefty savings, are there any flexible lenders out there for my circumstances?!

Hi Matthew,

If you're not 'in contract', i.e. on a set contract for a defined period of time with one end client; Halifax will assess you as self-employed and will demand two years' worth of company trading accounts as a minimum (sometimes 1yr with the right broker).

As a freelancer that's really the only income verification that you can use for a mortgage as no lender will accept anything else.

When you say you've been accepted on a mortgage with them, do you mean a Decision in Principle or have you received a mortgage offer?

What line of work are you in?

[matthewsainsbury]

I've been accepted a mortgage with Halifax based on having an on going contract in place, they calculate your day rate and secured weeks, so in my case 4 weeks worth of £250 per day.

My long term contract is coming to an end now and I'm more than likely going to back to scraps of freelance work which show nothing.

I only have 6 months worth of accounts in place since I set up as a Ltd but have some hefty savings, are there any flexible lenders out there for my circumstances?!