Reply to: So much going for and against me - mortgage advice needed

[CMMEgroup]

CMME

Hopefully this helps but there are several lenders who will look to ignore the gaps between contracts and will be willing to lend in your situation. We have a bespoke underwriting service with lenders/underwriters and we can present your situation to them directly.

If I can assist further, please get in touch.

[WordIsBond]

If consent is denied or they find out a property has been let without permission they can call in the loan. Not sure how often in reality this happens with all the 'accidental landlords' out there bending the rules.

OP plans to make it into a let, it isn't one yet. So you ask for consent, and failing that, get a BTL mortgage before letting it.

I'd say chances are good that they'll give consent with that LTV. They know OP will have little difficulty getting another loan so they'll just lose the loan if they are sticklers for it.

[Hobosapien]

Must you? What about getting a consent to let and just carrying on?

The risk is that the consent is denied. Depending on the lender they may only allow it for temporary situations and expect to convert to one of their BTL loans so the appropriate risk to them is covered.

If consent is denied or they find out a property has been let without permission they can call in the loan. Not sure how often in reality this happens with all the 'accidental landlords' out there bending the rules.

[WordIsBond]

Must you? What about getting a consent to let and just carrying on?

Yes, given the loan-to-value on that one I'd definitely try that first.

[northernladuk]

This!

Plus if you're looking to rent your current property, it is not an option, you must get a BTL mortgage! .

Must you? What about getting a consent to let and just carrying on?

[CryingSheep]

You could look into releasing the £300k or so equity in your current property for purchasing a new one. You may need to convert the existing mortgage to a BTL one anyway to be properly above board, so can re-arrange assets and finance so you have a new property without a mortgage and one with a BTL mortgage that you pay off with the rental profit.

Not sure if the contract specialist mortgage providers also cover BTL, where you only need a contract with 3 months+ to run to be able to use the contract rate as basis for loan potential.

In theory you could get a BTL mortgage with no current income (i.e. between contracts) if they base the affordability on the rent projection. Anyone done this?

This!

Plus if you're looking to rent your current property, it is not an option, you must get a BTL mortgage! The only downfall is with the above solution you will have much smaller LTV what would mean access to worse deals (higher interest).

[ChimpMaster]

Sounds like you have an amazing life!

PM me and I'll give you my direct contact at Freelancer Financials - he's an awesome broker and has arranged at least a dozen mortgages for me over the years.

[Hobosapien]

You could look into releasing the £300k or so equity in your current property for purchasing a new one. You may need to convert the existing mortgage to a BTL one anyway to be properly above board, so can re-arrange assets and finance so you have a new property without a mortgage and one with a BTL mortgage that you pay off with the rental profit.

Not sure if the contract specialist mortgage providers also cover BTL, where you only need a contract with 3 months+ to run to be able to use the contract rate as basis for loan potential.

In theory you could get a BTL mortgage with no current income (i.e. between contracts) if they base the affordability on the rent projection. Anyone done this?

[highlandspring]

Mortgage

I think it will all be in the rate. If you had a more solid work pattern you could get a better rate.

[Craig@Clarity]

I'd recommend going to an adviser that understands contractor mortgages and can help with the application. If you have an accountant, they should be associated to an IFA or similar who they can refer you to. Lenders will usually look at your affordability. Whatever business decision takes place in a limited company (6 months on/off) shouldn't have any bearing. They should look at the company's profits and reserves and your personal income for however many tax years they want to go back (maybe 2 or 3 years) to satisfy themselves you're good. This is then backed up by a request to your accountant to provide a reference to support your affordability.

[CalamityJane]

^^ This.

I see no problems here. Talk to CMME/Freelance Financials. I doubt that the banks will necessarily *get it*, but the brokers will. You have nothing to fear.

Thank you - I will go to a broker. I was thinking that I'd go straight to Halifax as I've heard good things but I guess I should play it safe an pay the middleman.

Thanks for the reassurance. My thoughts were that the criteria was frequency of work or annual amount made. Felt like I lost on both counts due to my six month absences so good to hear that there is hope here.

[northernladuk]

Tl;dr

Just go to a broker as mentioned above.

[wattaj]

There's been a few discussions on the boards recently about mortgages.

Many lenders (CMME did allude to this, here) don't require longevity of contract.

You have a good deposit so I suggest you get a broker (Freelance Financials / CMME) or talk to friendly banks (Barclays / Halifax) to get a better view.

I think you're worrying about nothing. I thought the "bad" was going to be that you have CCJ's or bankruptcy on your credit record!

^^ This.

I see no problems here. Talk to CMME/Freelance Financials. I doubt that the banks will necessarily *get it*, but the brokers will. You have nothing to fear.

[ladymuck]

There's been a few discussions on the boards recently about mortgages.

Many lenders (CMME did allude to this, here) don't require longevity of contract.

You have a good deposit so I suggest you get a broker (Freelance Financials / CMME) or talk to friendly banks (Barclays / Halifax) to get a better view.

I think you're worrying about nothing. I thought the "bad" was going to be that you have CCJ's or bankruptcy on your credit record!

[GhostofTarbera]

Just go to an understanding underwriter (where there are many who understand contractors) - problem solved

Any other life problems you want solved while you are here ?


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