Reply to: Contractor Mortgages - What are they like...any good?

[IRMe]

I don't want to start a mortage application, just to get some information, like for example, which kind of interest rates vs. traditional hight street mortgages are we talking about.

Is it always like that? I just want to know the interest rate contractors are able to get nowadays and stuff like that. Aproximate figures.

If you're happy to do your own research then you can find a lot of the mortgage product details on the web without needing to go to the brokers. All you need to do is search for the intermediaries version of the mortgage company website e.g. intermediaries.virginmoney.com. TSB, Halifax, Clydesdale all have similar setups. Then just compare against their equivalent mortgages on the 'public' website.

[SueEllen]

Why don't you point out your concerns to the broker rather than state them here.

Explain clearly why you don't want to provide full details as you don't want them to do a credit search.

Though not calculating and stating your expenditure, telling them how long you have been a contractor and how many years of made up accounts you have isn't going to allow them to help you.

Oh and if you don't understand something like the number of limited company accounts again ask the broker.

[AnotherGuy]

Why do you think giving someone your full name is unnecessary? Surely you would do that out of courtesy, more than anything else.

Well, in isolation, it is totally fine, but my point is, there are lots of personal details in that list and surely I don't want anybody to submit any mortgage application on my behalf or do any credit check that might leave a mark in my history (being my credit history perfect as of today, just in case someone is wondering).

Specially when I said clearly that I just wanted to get rough information. Not that I'm actually on the rush for a mortgage, like everybody out there seems to be.

For example, 3 years of addresses with dates can be summarise in: more than 3 years living in the same UK city. Does it really matter dates and addresses at this stage? If it is to know if I've been living abroad, then just asking straight is enough.

"Date of birth"? Why don't just ask for my age?

"No of ltd c accounts"? What does that even mean?

Etc.


Anyway. It is my opinion.

[JRCT]

I've been in contact with some guy at AS Financial regarding my options to be able to get a mortgage in my current situation (pretty new to contracting). I just need to get a general idea of the conditions I might be able to obtain, but in order to get any information I've been asked to provide them with:

- If it is a joint app (there details as well)
- Full name as per passport
- DOB
- Nationality length of visa if you don’t have perm rights to reside
- Length of time contracting
- Daily rate
- Previous occupation and co details when you where perm
- Details of any break over one month in the last 2 years
- Length of time contracting
- No of ltd c accounts
- Salary and dividend
- Last 3 years of address history inc dates
- Deposit that you wish to put down and ideal purchase price
- No of dependents
- Outgoings – school fees, nanny fees, loans, cc’s (amount outstanding, monthly payment and lender

Is all this really necessary? That seems like a lot of personal and private information.
Some of it I understand (rate, length of contract, deposit, savings...) but other I'm concerned (full name, DoB, 3 years of addresses...)

I don't want to start a mortage application, just to get some information, like for example, which kind of interest rates vs. traditional hight street mortgages are we talking about.

Is it always like that? I just want to know the interest rate contractors are able to get nowadays and stuff like that. Aproximate figures.

Why do you think giving someone your full name is unnecessary? Surely you would do that out of courtesy, more than anything else.

[Martin@AS Financial]

I've been in contact with some guy at AS Financial regarding my options to be able to get a mortgage in my current situation (pretty new to contracting). I just need to get a general idea of the conditions I might be able to obtain, but in order to get any information I've been asked to provide them with:

- If it is a joint app (there details as well)
- Full name as per passport
- DOB
- Nationality length of visa if you don’t have perm rights to reside
- Length of time contracting
- Daily rate
- Previous occupation and co details when you where perm
- Details of any break over one month in the last 2 years
- Length of time contracting
- No of ltd c accounts
- Salary and dividend
- Last 3 years of address history inc dates
- Deposit that you wish to put down and ideal purchase price
- No of dependents
- Outgoings – school fees, nanny fees, loans, cc’s (amount outstanding, monthly payment and lender

Is all this really necessary? That seems like a lot of personal and private information.
Some of it I understand (rate, length of contract, deposit, savings...) but other I'm concerned (full name, DoB, 3 years of addresses...)

I don't want to start a mortage application, just to get some information, like for example, which kind of interest rates vs. traditional hight street mortgages are we talking about.

Is it always like that? I just want to know the interest rate contractors are able to get nowadays and stuff like that. Aproximate figures.

Thanks Mark - thats really kind.

Another Guy - the reason that I have asked you for your information is that like all the other Advisers on this forum, we work on a full advice and recomendation basis. This means that in order to do my job properly, I need to be able to understand your situation in detail. I am not in the habit of cutting corners and jeopardising your future purchase.

The obvious benefit for you is that when you do find your home, your application is processed efficiently therefore minimising the time from mortgage application to full mortgage offer. Not only does this keep the estate agent happy, but your vendor remains confident in you as a puchaser, reducing the chances of you being gazumped.

Surely it is to your advantage that I fully understand your situation rather than quote you lots of rates that you do not qualify for?

[Mark McBurney@CMME]

I've been in contact with some guy at AS Financial regarding my options to be able to get a mortgage in my current situation (pretty new to contracting). I just need to get a general idea of the conditions I might be able to obtain, but in order to get any information I've been asked to provide them with:

- If it is a joint app (there details as well)
- Full name as per passport
- DOB
- Nationality length of visa if you don’t have perm rights to reside
- Length of time contracting
- Daily rate
- Previous occupation and co details when you where perm
- Details of any break over one month in the last 2 years
- Length of time contracting
- No of ltd c accounts
- Salary and dividend
- Last 3 years of address history inc dates
- Deposit that you wish to put down and ideal purchase price
- No of dependents
- Outgoings – school fees, nanny fees, loans, cc’s (amount outstanding, monthly payment and lender

Is all this really necessary? That seems like a lot of personal and private information.
Some of it I understand (rate, length of contract, deposit, savings...) but other I'm concerned (full name, DoB, 3 years of addresses...)

I don't want to start a mortage application, just to get some information, like for example, which kind of interest rates vs. traditional hight street mortgages are we talking about.

Is it always like that? I just want to know the interest rate contractors are able to get nowadays and stuff like that. Aproximate figures.

Hi AnotherGuy,

It's maybe not 'necessary' but it's certainly prudent for AS Financials to have asked for the above, in order to find the most suitable options for you. Things that may seem irrelevant can actually help with certain lenders' criteria, date of birth helps with knowing retirement age and therefore affordability with lenders, address history helps as there are some who will not lend if there is a foreign address in the last three years, for example.

It's better to be more involved at this stage and make sure that when the time comes to make an application, your broker has been able to check every detail of the case with that lender, rather than getting a nasty surprise either just before or worse, just after submitting your application.

Good luck.

Mark

[Ruprect]

Freelancer Financials - speak with Ryan. Top guy and can work all the options.

Cheers chimpy will give him a go

[AnotherGuy]

I've been in contact with some guy at AS Financial regarding my options to be able to get a mortgage in my current situation (pretty new to contracting). I just need to get a general idea of the conditions I might be able to obtain, but in order to get any information I've been asked to provide them with:

- If it is a joint app (there details as well)
- Full name as per passport
- DOB
- Nationality length of visa if you don’t have perm rights to reside
- Length of time contracting
- Daily rate
- Previous occupation and co details when you where perm
- Details of any break over one month in the last 2 years
- Length of time contracting
- No of ltd c accounts
- Salary and dividend
- Last 3 years of address history inc dates
- Deposit that you wish to put down and ideal purchase price
- No of dependents
- Outgoings – school fees, nanny fees, loans, cc’s (amount outstanding, monthly payment and lender

Is all this really necessary? That seems like a lot of personal and private information.
Some of it I understand (rate, length of contract, deposit, savings...) but other I'm concerned (full name, DoB, 3 years of addresses...)

I don't want to start a mortage application, just to get some information, like for example, which kind of interest rates vs. traditional hight street mortgages are we talking about.

Is it always like that? I just want to know the interest rate contractors are able to get nowadays and stuff like that. Aproximate figures.

[ChimpMaster]

I'm back off to contractor money again now... after speaking with a certain high street bank, with whom I have held a mortgage for 9 years, never missed a payment, banked with for 35 years, have full access to my personal accounts... who have refused an additional 50k (which would take it to 60% LTV) because I've "only been self employed for 1.5 years" and they need 2 years accounts. Gnnnnnaarrrggggghh c**ts.

Freelancer Financials - speak with Ryan. Top guy and can work all the options.

[Ruprect]

I'm back off to contractor money again now... after speaking with a certain high street bank, with whom I have held a mortgage for 9 years, never missed a payment, banked with for 35 years, have full access to my personal accounts... who have refused an additional 50k (which would take it to 60% LTV) because I've "only been self employed for 1.5 years" and they need 2 years accounts. Gnnnnnaarrrggggghh c**ts.

[Lumiere]

Mine's not a 'contractor' mortgage as such. Its a rapid repay facility with a bank that's very similar. Best of it is, it doesnt show up on any mortgage search so Im effectively mortgage 'free.

Interesting .. what are the key differences between this facility and an offset mortgage ? Who offers it ? There isn't much information in Google about it as it seems, or this product is known under different names.

[foobar]

Contractor Mortgages Made Easy - No probs.

CMME were very good. No problems.

Anyone going with CMME, PM me first and I will split the referral fee with you 50:50. </noshame>

[shelby68]

1st Mortgages at Thirsk

I've just got a contractor mortgage though 1st Mortgage services at Thirsk, Julie there sorted me out very quickly with a good deal (and that was on a listed building just to complicate things).

Rates seem pretty reasonable as well she only charged me 150 quid plus whatever she gets from the mortgage company and she deals with a lot of contractors she tells me.

[Power Mortgages Ltd]

Thx Power Mortgages Ltd,

That makes sense.

What do you mean by "If you have been contracting long enough then you could actually source funds based upon a multiple of your contract rate."?

The rate in my case would not be a problem but unfortunately I'm quite new to contracting (less than 2 months). I've been perm for several years in my previous company if that helps...

Hi AnotherGuy,

There are a few lenders who need you to have been contracting a certain amount of time but even if you have been contracting only a couple of months there are still options available if you have been in the same line of work, albeit on a permy basis, for the past couple of years. The choice is a little more restricted but there are still options.

Hope that helps?

[AnotherGuy]

Thx Power Mortgages Ltd,

That makes sense.

What do you mean by "If you have been contracting long enough then you could actually source funds based upon a multiple of your contract rate."?

The rate in my case would not be a problem but unfortunately I'm quite new to contracting (less than 2 months). I've been perm for several years in my previous company if that helps...