Mortgage rejection based on contract turned around?

[TheMortgageSquad]

Just got bad news that the underwriter for the mortgage I was looking at rejected my application because of some technicalities regarding my contract between inside and outside IR35, swithcing.

The broker seems to think they are being harsh and that she can salvage it despite them refunding my application fee.

Has anyone had a mortgage salvaged at this stage, I am trying not to panic and go to another broker I had been working with and make the situation worse in hope of fixing it?

Most contractor friendly lenders who have their own contractor policy (lending upon a multiple of your day rate rather than assessing income via Limited Company accounts or via payslips) understand that contractors can sometimes switch between inside and outside IR35 roles. We have never seen any issues with it so I can only assume the Underwriter looking at this one may be a bit green or the lender may not be one of the more common contractor friendly lenders? Which lender is it if you don't mind me asking? Hopefully it is all sorted now though?

[ladymuck]

Unless there was reason to believe the broker was inept I wouldn't penalise them for the lender's decision by switching to another broker without giving them a chance.

They can never guarantee that an application will be accepted, all they can do is recommend the best fit for your circumstances and ensure you've ticked all the boxes. It's still up to the lender to decide if they want you as a customer.

[northernladuk]

Who is your broker? Are you using a contractor specialist like Freelance Financials? They should be very well versed in inside/outside switching, gaps in contracts and whatever.

[Lance]

Just got bad news that the underwriter for the mortgage I was looking at rejected my application because of some technicalities regarding my contract between inside and outside IR35, swithcing.

The broker seems to think they are being harsh and that she can salvage it despite them refunding my application fee.

Has anyone had a mortgage salvaged at this stage, I am trying not to panic and go to another broker I had been working with and make the situation worse in hope of fixing it?

tell the broker to sort it with this lender or another and give them a timescale.
Switching broker is premature. There are plenty of lenders.

[Femster]

Just got bad news that the underwriter for the mortgage I was looking at rejected my application because of some technicalities regarding my contract between inside and outside IR35, swithcing.

The broker seems to think they are being harsh and that she can salvage it despite them refunding my application fee.

Has anyone had a mortgage salvaged at this stage, I am trying not to panic and go to another broker I had been working with and make the situation worse in hope of fixing it?