Reply to: Getting a mortgage as a contractor

[PerfectStorm]

As an example, when I went directly to Nationwide they refused to offer me anything over £200k. With Freelancer Financials I could take the mortgage beyond £800k+.

I'm pretty sure that figure is just a soft calculation and wouldn't necessarily be backed up by underwriters when it came down to applying. Happy to be proven wrong.

[Paralytic]

Always nice to have a happy ending!

Checks board

Not General

Deletes comment

[ladymuck]

Always nice to have a happy ending!

[AreYouGoingToWorkToday]

Writing an update lest some poor soul use the search function in the future and end up here.

I used Freelancer Financials who got me a mortgage offer quickly. The chap gave solid advice, and was clearly knowledgable about the market and different lenders.

The loan amount they were able to secure solely from my day rate was a real eye opener. Far more I had been given going down the more conventional routes I mentioned ealier.

As an example, when I went directly to Nationwide they refused to offer me anything over £200k. With Freelancer Financials I could take the mortgage beyond £800k+.

i'm tight, but even I must admit they were worth the money in the end - if only for sheer speed, and ease of mortgage acquisition.

Useful, thank you for the update!

[BigLadFromBeeston666]

Writing an update lest some poor soul use the search function in the future and end up here.

I used Freelancer Financials who got me a mortgage offer quickly. The chap gave solid advice, and was clearly knowledgable about the market and different lenders.

The loan amount they were able to secure solely from my day rate was a real eye opener. Far more I had been given going down the more conventional routes I mentioned ealier.

As an example, when I went directly to Nationwide they refused to offer me anything over £200k. With Freelancer Financials I could take the mortgage beyond £800k+.

i'm tight, but even I must admit they were worth the money in the end - if only for sheer speed, and ease of mortgage acquisition.

[Netraider]

[email protected] - sorted me out no problem (where others had failed)

Ben has started his own company. His email is now - [email protected]

[Wobblyheed]

[email protected] - sorted me out no problem (where others had failed)

[WTFH]

As so often around here, it's another case of equating cost to value.

I find it funny that the thing that good contractors do - earn more money by being able to provide knowledge and experience to a service that a client could probably get for a lot less if they were happy to sacrifice the knowledge and experience - is the same thing that a lot of posters on here refuse to do.

...insert Red Adair quote here.

[zonkkk]

Put your earnings down as Self Employed, income is Day Rate * 5 * 46

Nationwide don't lend based on day rate. They lend based on how much you pay yourself and look at the last 2 years of self assesments.

It looks like the maximum amount you can borrow is: Applicant 1 Yearly Income * 6 + Applicant 2 Yearly income.

So if you stay below the higher rate threshold and have a 50/50 share split, you will get somewhere around £350,000 at the most.

[malvolio]

Thanks all for your responses. So I tried Nationwide directly today just to see if I could get a DIP.

As the Co-applicant has been a contractor for 8 months and not the minimum of two years, it was rejected.

So seems like a contractor specialist is the way forward for my circumstances. I just hope the service will justify the considerable fee.

I also share your concerns Perfect Storm that the two specialists mentioned are not independent.

No idea what you're buying, but if it's only the average house price for the UK, your considerable fee is a shade over 3% of the total, considerably less if you're buying a bit further up the ladder, for which you get a service that will take away a lot of hassle and delay, as well as almost guaranteeing you get the mortgage.

As so often around here, it's another case of equating cost to value.

[PerfectStorm]

Not really going to help others here but in my case I was told to pay myself more dividends.

This is why I put in my post speak to them before putting in an application.

I see. That’s one way of doing it, but a proper contractor compatible lender should be able to do it off a combination of your day rate (and time left to run on contract), business bank account and current outgoings. That’s what Halifax did for me.

[SueEllen]

What did they suggest you did / how did you end up filling it out to make the process smooth?

Not really going to help others here but in my case I was told to pay myself more dividends.

This is why I put in my post speak to them before putting in an application.

[PerfectStorm]

I ended up having a discussion with a guy in the lender, who consulted with a couple of colleagues. Anyway he told me how to do my application so it would be accepted. I was accepted.

What did they suggest you did / how did you end up filling it out to make the process smooth?

[SueEllen]

As the Co-applicant has been a contractor for 8 months and not the minimum of two years, it was rejected.

I tried one of the brokers mentioned and they said they couldn't help me. ( They later apologised)

So after a bit of Googling for their lending criteria I went to one of the lenders PerfectStorm mentioned.

I ended up having a discussion with a guy in the lender, who consulted with a couple of colleagues. Anyway he told me how to do my application so it would be accepted. I was accepted.

Over the years I've met other contractors including new contractors who have done similar e.g. go in and talk to a known contractor friendly lenders mortgage advisor before submitting any form of application.

[BigLadFromBeeston666]

Thanks all for your responses. So I tried Nationwide directly today just to see if I could get a DIP.

As the Co-applicant has been a contractor for 8 months and not the minimum of two years, it was rejected.

So seems like a contractor specialist is the way forward for my circumstances. I just hope the service will justify the considerable fee.

I also share your concerns Perfect Storm that the two specialists mentioned are not independent.