Reply to: Mortgage with time off between contracts

[Sheens83]

Aren't all these applications going to crash your credit score or are you getting refused before they get that far?

I'm getting refused even before I get that far. Some brokers actually phoned up the underwriters so see whether it's worth processing the application which is great on my behalf. Can't fault the brokers I've been working with so far

[northernladuk]

Aren't all these applications going to crash your credit score or are you getting refused before they get that far?

[Sheens83]

COOP look at 2 years of accounts. Although I was already with the COOP and have £200k in equity.
Most IFAs won;t be able to offer the COOP so give them a ring.
Nationwide are also good with higher risk mortgages (first time buyer and I'm assuming no more than 10% deposit).
Deposit is the key to unlocking the deals though.

Thanks for this! I will be approaching Natwest & HSBC directly as they do not use brokers so need to work directly with them. I will add Nationwide to the list

[Lance]

Nationwide look at a rolling 12 month period during which you can have up to 3 months out of contract.

COOP look at 2 years of accounts. Although I was already with the COOP and have £200k in equity.
Most IFAs won;t be able to offer the COOP so give them a ring.
Nationwide are also good with higher risk mortgages (first time buyer and I'm assuming no more than 10% deposit).
Deposit is the key to unlocking the deals though.

[northernladuk]

I use polly at contractor mortgages made easy.. used her three times now and never had an issue getting a mortgage.

That just reads so wrong. So very very wrong.

[needmorstuff]

I use polly at contractor mortgages made easy.. used her three times now and never had an issue getting a mortgage. Just need daily rate and 2 months left on contract.

Polly Dyer
Senior Mortgage & Protection Consultant

Phone: 01489 555 080 | Direct: 01489 556 126 | Fax: 0871 251 7711

[northernladuk]

Still waiting for feedback from Freelance Financials. Although the deal with the estate agent broker was also quoting a product from Halifax as well. Not sure if they are the same?

Dunno. In the past I thought the contractor people had options to a different set of products geared to us but they've evolved now so not sure if anyone can push them. Will be interesting to see when you find out.

[Sheens83]

Again though, what was the response from the Halifax via Freelance Financials? I thought Hfx had a really good grasp on this and weren't as hung up on the problems that face us like other lenders do?

Still waiting for feedback from Freelance Financials. Although the deal with the estate agent broker was also quoting a product from Halifax as well. Not sure if they are the same?

[northernladuk]

So just to clarify I have 25% deposit which works in my favour. I went to my bank and they have stated that they could lend to me, but not as much as I need as my annual income has been slightly lower due to the 5 months out.

Makes sense.

The brokers stated that to base the mortgage on my day rate, the criteria is that I must be no more than 3months out of work to give the impression of full time employment. This is why they have tried using the annual income route.

I think Virgin don't like breaks at all as well but I'm actually surprised if the reason they can lend on day rate with no gaps is because it gives the impression of full time employment. That shows they don't understand us at all because that couldn't be further from what we do. Bearing in mind the amount of time they take assessing risk and applying it to lending criteria I'm a bit shocked they would let two things which are completely different pass just because it gives the impression.

I took exams during my time off so one advisor pitched that my rate was higher after the time off due to the qualifications I attained but unfortunately the underwriters couldn't proceed. I was advised that for contractors they base what they give you on your history rather than your projected income (like a full time employee).

I can't believe that was ever going to fly and that they even bothered to try it. It's so intangible there is no way they'd take that in to account.

I am still perusing but have to admit it seems quite unlikely until next year that I may have the accounts I need to lend me the amount I was looking for originally.

Just wanted to say thanks for all the replies. The information has been very useful!

Shame, it's never straightforward with us even with the help of the contractor specialists.

Again though, what was the response from the Halifax via Freelance Financials? I thought Hfx had a really good grasp on this and weren't as hung up on the problems that face us like other lenders do?

[Sheens83]

Depends on the lender. Nationwide look at a rolling 12 month period during which you can have up to 3 months out of contract.

If you're 6 months into a contract after your 5 months out I guess that means you've got to stay in contract continuously for another 3 months before you're back in the zone again.

Of course, this assumes you're going for a mortgage basdd on your day rate - which is where the best deals are.
You could get one based on your accounts but I doubt you'd get a very good deal with 2 years worth of accounts.

You were spot on here! Definitely explained it a lot better than I did! Thank you

[Sheens83]

So just to clarify I have 25% deposit which works in my favour. I went to my bank and they have stated that they could lend to me, but not as much as I need as my annual income has been slightly lower due to the 5 months out.

The brokers stated that to base the mortgage on my day rate, the criteria is that I must be no more than 3months out of work to give the impression of full time employment. This is why they have tried using the annual income route.

I took exams during my time off so one advisor pitched that my rate was higher after the time off due to the qualifications I attained but unfortunately the underwriters couldn't proceed. I was advised that for contractors they base what they give you on your history rather than your projected income (like a full time employee).

I am still perusing but have to admit it seems quite unlikely until next year that I may have the accounts I need to lend me the amount I was looking for originally.

Just wanted to say thanks for all the replies. The information has been very useful!

[NotAllThere]

No need to post the same thread twice.

You are better of asking admin to move your original thread to a professional part of the board. General isn't the place to ask such questions and you are were lucky your thread wasn't trolled.

Threads merged and redirected.

[Hobosapien]

Is it usually as simple as the following?

If in contract go with a contract specialist who will use the current contract rate for mortgage suitability calculation.

If not in contract go with traditional mortgage company who will use existing year end accounts, if any exist.

[SueEllen]

This might be a big reason for getting knocked back, I could be wrong but most brokers require a minimum of 3 years' accounts.

qh

You can get mortgages with 2 years of accounts.

Also if you are near your 3 years you can encourage your accountant to produce draft accounts for your 3rd year asap.

[Sheens83]

No need to post the same thread twice.

You are better of asking admin to move your original thread to a professional part of the board. General isn't the place to ask such questions and you are were lucky your thread wasn't trolled.

Sorry for this! I couldn't find my original post and thought it didn't go through. I'll find it now and adjust