Reply to: MMR - Getting a mortgage whilst on the bench?

[Power Mortgages Ltd]

Strange, different things for different people I guess, but I found Power Mortgages totally useless, but I'm glad you got it sorted in the end.

Hi AvsFan,

Sorry to hear you did not find our service useful. Could I ask you to PM me with the name of the advisor you spoke to and why you felt the service was not as expected? We pride ourselves on providing a high level of customer service which is evident by the general level of positive feedback we have on here but I would be keen to find out where we evidently seem to have gone wrong with your enquiry so we can rectify any potential training needs.

Thanks

[AvsFan]

Strange, different things for different people I guess, but I found Power Mortgages totally useless, but I'm glad you got it sorted in the end.

[ujjain]

I'm happy for you, but why would you use an Umbrella company?

[Mark McBurney@CMME]

Good news - did the gap in work turn out to be less than you originally thought then?

Pleased that you got this sorted.

[rocktronAMP]

Hello All

For people out there who are wondering about contract mortgages and searching this forum, let me answer my own thread and put an end of this story.

Thanks to a certain good fellow, Mr. Ashley Wardle, Power Mortgages UK, Southampton, I have able to eventually obtain a contractor mortgage. The 2 year mortgage offer I received from the bank lender was very reasonable. I also have added Life Cover and Critical Illness Cover to insure my family for the future.

I had to find my current contract gig first, which I started mid-December last year and ensure that the contract length was at least 3 months. (I remember that I knocked back several phone calls about contracts working up to Xmas 2014. WTF?!) My current contract is 6 months long, which is long enough to be "annualised" and it helped that the gig was in the financial sector.

My family eventually moved house out of London in early February and we had already found our next place and put an offer on it. The first offer in September eventually lapsed, because I was in the bench. As soon as I won the current contract in December, I re-offered and the vendors, thanks to be their kind goodness, re-accepted. Luckily, they were in the process of taking the house off the market for Christmas and New Year and had rejected ridiculous offers from other people. I soon as my offer was accepted, I went back to the contractor mortgage firms. I was beginning to lose hope, but I found one helpful company...

Our new house is lovely in a new town, access to countryside, calm and green environment and good community of people. We are making our house a home slowly but surely and it would not have been possible without Power Mortgages UK Ltd. They came through for me and my family. I definitely recommend them to other contractors thinking of moving. Yes, you can survive MMR as a contractor and find the good life!

Finally, here is my advice:

1) Make your sure contract situation is stable. (You need to be currently working a contract 3-6 months to cover your time moving house for example).

2) Make sure you only put on offer on a new house when you are working gig . If your current contract is about to an end and you will be on the bench for uncertain time, then forget about it!

3) Ensure that you have electronic and/or paper legal contract agreements of all your last 2 to 3 years of contracts engagements, which are counter signed witnessed by you (and/or your umbrella company) and the client.

Fin



All the best.

For me, in 2013 I have about 2 months on the bench and in the 2014, I have had, maybe 3 months on the bench, max. It seems to be based on luck rather any sinister doing on my side. After all, we are temporary workers and in London there is a plenty of competition for contract work around £400-500 per day mark. This is what I found in October and November down here.

My situation and experience has certainly changed my thinking around umbrella companies versus limited companies. I will certainly re-evaluate the pros and cons of both in 2015! Based of the new MMR it sounds like it is slightly better to be LTD and have 2-3 year of accounts and make sure you earn a lot of cash in the gigs; and also pay your self a decent wage. What has shocked me is the requirement: "You must be in 12 months continuous engagement/contract/employment before you can apply" or "You have to wait 6 months in contract; then you get a renewal for another 6 months; before this mortgage lender will even consider your mortgage application". Statements like that are of concern.

[rocktronAMP]

Hello All

For people out there who are wondering about contract mortgages and searching this forum, let me answer my own thread and put an end of this story.

Thanks to a certain good fellow, Mr. Ashley Wardle, Power Mortgages UK, Southampton, I have able to eventually obtain a contractor mortgage. The 2 year mortgage offer I received from the bank lender was very reasonable. I also have added Life Cover and Critical Illness Cover to insure my family for the future.

I had to find my current contract gig first, which I started mid-December last year and ensure that the contract length was at least 3 months. (I remember that I knocked back several phone calls about contracts working up to Xmas 2014. WTF?!) My current contract is 6 months long, which is long enough to be "annualised" and it helped that the gig was in the financial sector.

My family eventually moved house out of London in early February and we had already found our next place and put an offer on it. The first offer in September eventually lapsed, because I was in the bench. As soon as I won the current contract in December, I re-offered and the vendors, thanks to be their kind goodness, re-accepted. Luckily, they were in the process of taking the house off the market for Christmas and New Year and had rejected ridiculous offers from other people. I soon as my offer was accepted, I went back to the contractor mortgage firms. I was beginning to lose hope, but I found one helpful company...

Our new house is lovely in a new town, access to countryside, calm and green environment and good community of people. We are making our house a home slowly but surely and it would not have been possible without Power Mortgages UK Ltd. They came through for me and my family. I definitely recommend them to other contractors thinking of moving. Yes, you can survive MMR as a contractor and find the good life!

Finally, here is my advice:

1) Make your sure contract situation is stable. (You need to be currently working a contract 3-6 months to cover your time moving house for example).

2) Make sure you only put on offer on a new house when you are working gig . If your current contract is about to an end and you will be on the bench for uncertain time, then forget about it!

3) Ensure that you have electronic and/or paper legal contract agreements of all your last 2 to 3 years of contracts engagements, which are counter signed witnessed by you (and/or your umbrella company) and the client.

Fin



All the best.

For me, in 2013 I have about 2 months on the bench and in the 2014, I have had, maybe 3 months on the bench, max. It seems to be based on luck rather any sinister doing on my side. After all, we are temporary workers and in London there is a plenty of competition for contract work around £400-500 per day mark. This is what I found in October and November down here.

My situation and experience has certainly changed my thinking around umbrella companies versus limited companies. I will certainly re-evaluate the pros and cons of both in 2015! Based of the new MMR it sounds like it is slightly better to be LTD and have 2-3 year of accounts and make sure you earn a lot of cash in the gigs; and also pay your self a decent wage. What has shocked me is the requirement: "You must be in 12 months continuous engagement/contract/employment before you can apply" or "You have to wait 6 months in contract; then you get a renewal for another 6 months; before this mortgage lender will even consider your mortgage application". Statements like that are of concern.

[Mark McBurney@CMME]

I accepted the offer of a 6 month contract, yesterday. The legal contract between my umbrella company, the recruitment agency and the client is currently being drawn up today.

I currently live in the South East.

I spoke to Simon yesterday morning on the phone after I got and accepted the job offer.

Hi,

Their lending area can be seen here: https://www.metrobankonline.co.uk/Di...ermediaries-1/ (This has been extended to include Peterborough, MK etc in the last week, funnily enough!).

The big issue will be the recent gap, as discussed previously. Let me find out their approach on this and come back to you.

[rocktronAMP]

I got a mortgage earlier this year and I think once all the paperwork was in it took about 6 weeks.

For me, in 2013 I have about 2 months on the bench and in the 2014, I have had, maybe 3 months on the bench, max. It seems to be based on luck rather any sinister doing on my side. After all, we are temporary workers and in London there is a plenty of competition for contract work around £400-500 per day mark. This is what I found in October and November down here.

My situation and experience has certainly changed my thinking around umbrella companies versus limited companies. I will certainly re-evaluate the pros and cons of both in 2015! Based of the new MMR it sounds like it is slightly better to be LTD and have 2-3 year of accounts and make sure you earn a lot of cash in the gigs; and also pay your self a decent wage. What has shocked me is the requirement: "You must be in 12 months continuous engagement/contract/employment before you can apply" or "You have to wait 6 months in contract; then you get a renewal for another 6 months; before this mortgage lender will even consider your mortgage application". Statements like that are of concern.

[rocktronAMP]

Unfortunately the two areas of concern here are firstly working through an 'offshore' structure, and secondly the gap of several months up to now.

Until recently there was pretty much a choice of one lender for this, who would automatically say no with a gap of more than 5 weeks in the last 12 months, however there is another lending option available to us - unfortunately however they only lend in the South East.

Who did you speak to, out of interest, as I was in a meeting all morning?

EDIT: An 'offer' of contract? Until you're physically working on the assignment and have a fully signed and sealed contract, there are certainly no options, based upon working through an umbrella company.

I accepted the offer of a 6 month contract, yesterday. The legal contract between my umbrella company, the recruitment agency and the client is currently being drawn up today.

I currently live in the South East.

I spoke to Simon yesterday morning on the phone after I got and accepted the job offer.

[Mark McBurney@CMME]

Hi Mark

I believe today that I will get an offer of 6 months for contract in central London at good rate.

I have just been on the phone yet again and I 0was told categorically that it is very unlikely that I will be able to apply for a mortgage, because I use a umbrella company and because I have a gap "on the bench" between contracts of 2 months (assuming that the agent and the client are honourable.)

"Before I can apply for a mortgage as a contractor, I need to be have continuously working for 12 months in my next contract positions."

Right now I am

Is there any contractor mortgage specialist that can help me now? Any pointers at all??

Unfortunately the two areas of concern here are firstly working through an 'offshore' structure, and secondly the gap of several months up to now.

Until recently there was pretty much a choice of one lender for this, who would automatically say no with a gap of more than 5 weeks in the last 12 months, however there is another lending option available to us - unfortunately however they only lend in the South East.

Who did you speak to, out of interest, as I was in a meeting all morning?

EDIT: An 'offer' of contract? Until you're physically working on the assignment and have a fully signed and sealed contract, there are certainly no options, based upon working through an umbrella company.

[anonymouse]

I'm trying with Contractor Financials

Hi Mark

I believe today that I will get an offer of 6 months for contract in central London at good rate.

I have just been on the phone yet again and I 0was told categorically that it is very unlikely that I will be able to apply for a mortgage, because I use a umbrella company and because I have a gap "on the bench" between contracts of 2 months (assuming that the agent and the client are honourable.)

"Before I can apply for a mortgage as a contractor, I need to be have continuously working for 12 months in my next contract positions."

Right now I am

Is there any contractor mortgage specialist that can help me now? Any pointers at all??

There's a gap 9 months ago, for 6 months. But the current contract has been extended, and there's another 6 months to be added yet. They are trying to see what they can do for me.

[NickNick]

How long does it take for a contractor to actually get a mortgage in 2014?

Assuming, I won a contract [ and I still interviewing now and looking], what are the steps and the time periods inside an application? (What has changed since the early noughties? ;-)

When do you get the mortgage in principle bit?


TIA

I got a mortgage earlier this year and I think once all the paperwork was in it took about 6 weeks.

[rocktronAMP]

They didn't ask about contract as they have assessed you as self-employed based on the three years' of accounts. This is probably the only way of being able to obtain a mortgage as a contractor whilst out of contract.

Hi Mark

I believe today that I will get an offer of 6 months for contract in central London at good rate.

I have just been on the phone yet again and I 0was told categorically that it is very unlikely that I will be able to apply for a mortgage, because I use a umbrella company and because I have a gap "on the bench" between contracts of 2 months (assuming that the agent and the client are honourable.)

"Before I can apply for a mortgage as a contractor, I need to be have continuously working for 12 months in my next contract positions."

Right now I am

Is there any contractor mortgage specialist that can help me now? Any pointers at all??

[Mark McBurney@CMME]

I got a mortgage with hsbc earlier this year when out of contract - but I had 3 years of accounts. They didn't even ask whether I was in contract at the time, just wanted to see salary & dividend details.

But they did ask for a lot of budgeting work to prove the payments were affordable.

They didn't ask about contract as they have assessed you as self-employed based on the three years' of accounts. This is probably the only way of being able to obtain a mortgage as a contractor whilst out of contract.

[SarahL2012]

I got a mortgage with hsbc earlier this year when out of contract - but I had 3 years of accounts. They didn't even ask whether I was in contract at the time, just wanted to see salary & dividend details.

But they did ask for a lot of budgeting work to prove the payments were affordable.