Getting a mortgage

[Flopsy]

We applied for mortgages (high st banks) in 2007 and 2008. They were happy to go ahead with 6 years audited accounts. This was on their advertised rates. We didn't buy as the market was moving too quickly and we were usually gazumped (hindsight, phew!).

In late 2008 we applied again and they were only interested if we could put up a large deposit. This was to get rates advertised - but such a large deposit wasn't needed for permie employees (they said).

When we find the right home, at the right time we will apply again. Given the current market some banks are tightening requirements and it does appear as if the self-employed are under more scutiny than permies.

[Sausage Surprise]

I hadn't had a problem with High Street banks ... until last year !

This time around I had to go through Contractor Money and pay a slightly higher rate of interest.

I guess its the effect of the credit crunch - Contractors are again deemed high(er) risk

Mine was in Jan 08 so you may be right - looks like I got in before the checks became more stringent

[FarmerPalmer]

Not true in my case - I'd only been ltd for 6 months and they were happy to be shown invoices.

I hadn't had a problem with High Street banks ... until last year !

This time around I had to go through Contractor Money and pay a slightly higher rate of interest.

I guess its the effect of the credit crunch - Contractors are again deemed high(er) risk

[Sausage Surprise]

The interest rates were higher than the equivalent high street mortgage. But the point is, that you can't go to a high street lender, they will ask for 2 years accounts.

Not true in my case - I'd only been ltd for 6 months and they were happy to be shown invoices.

[FSM with Cheddar]

Thanks! That's exactly the kind of thing I'm looking for. Were the interest rates competitive with eg high street lenders?

The interest rates were higher than the equivalent high street mortgage. But the point is, that you can't go to a high street lender, they will ask for 2 years accounts.

[Sausage Surprise]

Never had a problem - the C&G wanted payslips so I showed them invoices - they were happy with that.

[spoons]

I used them last year and can highly recommend them.

+1 Mine was with the Abbey.

[FarmerPalmer]

http://www.contractormoney.com/contr...ortgages.shtml

They work on multiples of your hourly / daily rate.

I used them, and they were very good.

I used them last year and can highly recommend them.

[DaveB]

http://www.contractormoney.com/contr...ortgages.shtml

They work on multiples of your hourly / daily rate.

I used them, and they were very good.

I used them a couple of years ago and they were very good. Got me a decent discounted fixed rate deal I wouldnt have got otherwise.

[d000hg]

They act as a broker I think, agreeing special deals with 'high street' providers. The point is they get you deals you couldn't get like-for like as a contractor.

If your question was "can they get me the same rates as if I was a permie buying on the high-street", I've no idea. Maybe not without a big deposit.

[spig]

http://www.contractormoney.com/contr...ortgages.shtml

They work on multiples of your hourly / daily rate.

I used them, and they were very good.

Thanks! That's exactly the kind of thing I'm looking for. Were the interest rates competitive with eg high street lenders?

[FSM with Cheddar]

http://www.contractormoney.com/contr...ortgages.shtml

They work on multiples of your hourly / daily rate.

I used them, and they were very good.

[spig]

As mentioned in another thread I'm about to go Ltd after being brolly for the past few months. I'm also hoping to buy a house at some point soon, although I plan to wait until the prices stop falling quite so heavily. I want to be prepared for when the market starts to pick up. The idea of going Ltd is to save more cash for a deposit, perhaps leaving anything over 40k/year in the company then closing it down after a year of trading to make use of entrepeneurs relief on the CGT I'll have to pay.

Is going Ltd likely to negatively affect my chances of getting a mortgage? I'm a bit concerned about this what with the difficulties people are having getting regular mortgages in the current climate. Are there any specialised companies that deal with mortgages for contractors that anyone has used that I can talk to? A friend of mine got a mortgage who is a contractor but this was some time ago, and they wanted 3 years of accounts from his Ltdco which I won't have.