9 Months Contracting + 4 Years Accounts = Difficulty Getting Mortgage. Help!

[Mark McBurney@CMME]

Hi guys,

I'm new on here so bear with me.

I'm having difficulties in getting a mortgage for a new build as a FTB. Which is annoying. Here's why:

Been contracting for the past 9 months + 3 months left. Director of my ltd. I have 4 years accounts, but only 9 months as a contractor.

I'm looking to buy a new build property of circa £300k. Paid the reserve. Will lose it if I don't close in 3 weeks.

Experian credit score: 999. Past 4 years salary & dividend payments at standard (£40k). 2 credit cards with £15k limit. Total balance on both is just about £3.5k. Day rate > £400.

First mortgage consultant: "Decision in Principle rejected. Please send me your credit report". I sent it and she said she doesn't understand why it was rejected. Tried with Virgin Money, it was accepted, but I didn't meet other criteria.

Second mortgage consultant: "Halifax decision in principle accepted at half the mortgage value. But not for full loan value." Said something about me not having an extensive loan profile. I can't use my accounts as it'd be too low.

Third mortgage consultant: "Decision in principle accepted by Halifax for 20% HTB, 15% deposit and 65% mortgage". I can't afford 15% deposit.


Need advice on what to do next. I'd prefer to deposit 5%, use 20% HTB and loan 75%.

What deposit do you have? You may struggle if you can't reach 15% as many lenders impose maximum LTV restrictions on new-build property. There are one or two that I can think of who will go above this but it absolutely must be a builder on their list and a broker on their list too. The length of time that you've contracted will be an issue above c.70% LTV with some also.

Can't work out the restrictive figures above unless there's anything that you've not mentioned here, on contractor policy Halifax would view your income as £96,000, which would make even a 90% mortgage at £270k fairly comfortably achievable....?

[pr1]

definitely use a contractor friendly mortgage broker - to joe bloggs @ high street bank it looks like you earn £40k/year

one flag I did notice is that you're trying to buy a new build - apparently (according to broker I'm going through at the mo) banks don't trust new build valuations as much, so aren't willing to take as much risk on them - so that might be another thing holding you back

[fool]

Easy Street Financial Services | Financial Advice in Surrey and surrounding areas. sorted me out.

Ian got me a £400,000 mortgage less than a year ago with halifax based on having a 6 month £400 p/d contract, some credit reports and personal bank statements.

I assume you can do it without the broker, but they tend to push to where it needs to be until it happens as they're no mortgage no fee lots.

[Danglekt]

as above, they sorted me

[northernladuk]

Or call Freelancer Financials
https://www.freelancerfinancials.uk.com/

[PerfectStorm]

Try Contractor Mortgages Made Easy

[tymolls]

Hi guys,

I'm new on here so bear with me.

I'm having difficulties in getting a mortgage for a new build as a FTB. Which is annoying. Here's why:

Been contracting for the past 9 months + 3 months left. Director of my ltd. I have 4 years accounts, but only 9 months as a contractor.

I'm looking to buy a new build property of circa £300k. Paid the reserve. Will lose it if I don't close in 3 weeks.

Experian credit score: 999. Past 4 years salary & dividend payments at standard (£40k). 2 credit cards with £15k limit. Total balance on both is just about £3.5k. Day rate > £400.

First mortgage consultant: "Decision in Principle rejected. Please send me your credit report". I sent it and she said she doesn't understand why it was rejected. Tried with Virgin Money, it was accepted, but I didn't meet other criteria.

Second mortgage consultant: "Halifax decision in principle accepted at half the mortgage value. But not for full loan value." Said something about me not having an extensive loan profile. I can't use my accounts as it'd be too low.

Third mortgage consultant: "Decision in principle accepted by Halifax for 20% HTB, 15% deposit and 65% mortgage". I can't afford 15% deposit.


Need advice on what to do next. I'd prefer to deposit 5%, use 20% HTB and loan 75%.