Reply to: Contractor mortgages

[Lumiere]

All the brokers I spoke to (Freelancer Financials, Contractor Financials/CMME & AS Financial) said this wouldn't be problem

They told me the opposite about a year ago when I enquired, glad it is different now.

[eastway]

Are there any lenders that don't require an active 3+ months contract if you have many years of accounts without long breaks ?

All the brokers I spoke to (Freelancer Financials, Contractor Financials/CMME & AS Financial) said this wouldn't be problem - I had three years of accounts, but was on a break so no active contract, and managed to get a mortgage with Virgin Money, was all very easy!

[northernladuk]

Are there any lenders that don't require an active 3+ months contract if you have many years of accounts without long breaks ?

You'd be best asking a specialist advisor that has a view across the market. We won't really know.

[Lumiere]

Are there any lenders that don't require an active 3+ months contract if you have many years of accounts without long breaks ?

[Becky at Power Mortgages]

I think Nat West now do mortgages based on a multiple of your day rate.

Afternoon Radish2008, you are correct NatWest have started offering contractor based underwriting with income defined as a multiple of your contract rate. There are a number of other lenders who offer this such as, but not limited to Halifax, Clydesdale Bank, Accord Mortgages, Nationwide, Scottish Widows, Leeds Building Society ect...

I would say it is worth speaking to a contractor specialist broker who will be able to understand your full circumstances and requirements and advise you accordingly as each and every one of the above lenders have slightly different criteria.

Hope that helps.

[radish2008]

Looking to remortgage based on my own contractor income, went to current one (Barclays) who only looked at my self assessment income which was low last year as I retain profits for warchest and split divvies. So they couldn't loan me what I need.

Is there a bank/company that will lend based on your actual earnings? Only snag is my contract is due to end on a few weeks but 99% sure I will get renewed. Looking fpr 85% LTV and a low rate. Also would prefer it to be a second mortgage as I have a high early repayment charge on the original one

P.S. NLUK please don't ask me to search

I think Nat West now do mortgages based on a multiple of your day rate.

[MarillionFan]

How do you go "direct" with Halifax and where are the rates published?

The closest I got to was here Halifax Intermediaries | Mortgages

And to use this you need to go through a broker

If you'd bothered to read more than the last post, you'll see I was following a recommendation for a broker called Freelance Financials.

[LondonPM1]

Good call. Does not appear to be a penalty compared to normal.

1.19 for 2 Years Fixed, 1.79 for 5 Years, based on day rate x 240 x 4-4.5 multiple

Happy with that.

How do you go "direct" with Halifax and where are the rates published?

The closest I got to was here Halifax Intermediaries | Mortgages

And to use this you need to go through a broker

[northernladuk]

Good call. Does not appear to be a penalty compared to normal.

1.19 for 2 Years Fixed, 1.79 for 5 Years, based on day rate x 240 x 4-4.5 multiple

Happy with that.

Yikes. I don't remember mine being that low. I was quite happy with it a few moments ago but now gonna have to have a look

[MarillionFan]

Good question. I'm not really sure. As high street lenders couldn't help me I didn't spend much time comparing TBH. Halifax contractor mortgage rates were pretty good from what I recall so didn't really feel penalised.

Good call. Does not appear to be a penalty compared to normal.

1.19 for 2 Years Fixed, 1.79 for 5 Years, based on day rate x 240 x 4-4.5 multiple

Happy with that.

[northernladuk]

Thanks. And compared to the high street for normal punters how much were you penalised against the best?

Good question. I'm not really sure. As high street lenders couldn't help me I didn't spend much time comparing TBH. Halifax contractor mortgage rates were pretty good from what I recall so didn't really feel penalised.

[MarillionFan]

Doesn't have to be 2 years. They can take a mix. I got one through freelancer financials with a year and a bit contracting. The lenders are a lot smarter now. They are able to work out what's going on so shouldn't be a problem for you.

Thanks. And compared to the high street for normal punters how much were you penalised against the best?

[northernladuk]

Doesn't have to be 2 years. They can take a mix. I got one through freelancer financials with a year and a bit contracting. The lenders are a lot smarter now. They are able to work out what's going on so shouldn't be a problem for you.

[MarillionFan]

Do you have to have been contracting for two years to get a mortgage, or can it be based on your SA for the last few years and having a contract in place?

Example : I was perm for the last 4 years but still had to do an SA, have been contracting again 3 months, and have an extension until September.

[PerfectStorm]

Got mine direct through Halifax - cheaper than a broker, and they know exactly how contracting works. Only needed to see the front page of my contract as proof of income.