Reply to: Mortgage

[Freelancer Financials]

I recently got a BTL mortgage directly through Newcastle Mortgages. No need for a specialist broker. They just wanted to see a copy of my current contract and previous P60's from my permie days (the last two years). I've been contracting just under 10 months. Got accepted straight away. Had 25% as a deposit...

That's pretty impressive. Do you operate through a LTD or Umbrella? How long did you have remaining in your contract when you applied to them?

They normally view contractors as a higher risk!

[ee00ffk]

I have been contracting for 9 months and finding it difficult to find a mortgage. Can anyone suggest a solution? I

I recently got a BTL mortgage directly through Newcastle Mortgages. No need for a specialist broker. They just wanted to see a copy of my current contract and previous P60's from my permie days (the last two years). I've been contracting just under 10 months. Got accepted straight away. Had 25% as a deposit...

[Emma Power Mortgages]

Didn't you just say that 4 posts ago?

You have caught me off guard today! too keen to answer a new enquiry

[Emma Power Mortgages]

I am struggling to see what prevents contractors from switching from their ltd to umbrella once they need a mortgage? I assume it is possible to negotiate with the client that from this months call me not MyCo Ltd but Umbrella Ltd, is not it?
Please correct me if I am wrong but umbrella is an employer and there is plenty of lenders who are prepared to approve mortgage even in your first month of "employment".
Or are lenders treat umbrellas differently to other employers? And if so, then how do they know?

They are treated differently to other employers, some lenders wont accept them at all. Most require a history of 12 - 24 months before accepting an umbrella application, from a mortgage perspective there is no real difference between the two if you are a contractor. You are going to be treated more favourably for affordability if your contract rate can be utilised

[northernladuk]

{sales pitch}

Didn't you just say that 4 posts ago?

[Emma Power Mortgages]

I have been contracting for 9 months and finding it difficult to find a mortgage. Can anyone suggest a solution? I

There are several specialist mortgage brokers out there able to assist with this kind of enquiry, make a few calls and discuss your situation with them specifically, that way you will receive tailored advice for your circumstances.

[northernladuk]

You are missing the point completely. The problem is our income is different to that of an employee. They get a salary and can easily be checked using the end of year tax docs. Nice and simple. Our income is extremely flexible and totally under our control so making it very difficult for the lender to assess. That is where the contractor products come in and we are assess on contract rate, or the ability to earn, not what salary or divis we pay. Switching to an umbrella doesn't help as they still can't assess our last two years income properly.

Rates for contractors are just as good as they are for permies so why go tons brolly and loose a big chunk of income just to get a mortgage?

[torero]

I am struggling to see what prevents contractors from switching from their ltd to umbrella once they need a mortgage? I assume it is possible to negotiate with the client that from this months call me not MyCo Ltd but Umbrella Ltd, is not it?
Please correct me if I am wrong but umbrella is an employer and there is plenty of lenders who are prepared to approve mortgage even in your first month of "employment".
Or are lenders treat umbrellas differently to other employers? And if so, then how do they know?

[hamario]

Contact contractor Mortgages made easy. I just got a mortgage through them. They charge a fee but are very good. Application submitted on Wed survey on Friday approval on Monday.

9 months shouldn't be an issue as long as you have been working and have 1 month left before your contract ends. Also it depends on how much deposit you have.

What fee did they charge you?

[Freelancer Financials]

I have been contracting for 9 months and finding it difficult to find a mortgage. Can anyone suggest a solution? I

Yes. If you're an non IT Contractor and earn over £312.50/day, you can get a Contractor Mortgage from Halifax. However, if you're an IT Contractor no minimum contract rate required by Halifax.

Most other contractor friendly lenders that assess your affordability based on your contract rate will be looking at a minimum of 1-years contracting history. Clydesdale can be flexible as long as you have a minimum deposit of 30% and they will also look at what you were earning before you started contracting.

Good luck!

[Emma Power Mortgages]

I have been contracting for 9 months and finding it difficult to find a mortgage. Can anyone suggest a solution? I

There are a couple of options out there for contractors from their first day. Speak to a specialist broker who can discuss these options with you and if they are suitable for your circumstances

[Jinnah]

I have been contracting for 9 months and finding it difficult to find a mortgage. Can anyone suggest a solution? I

Contact contractor Mortgages made easy. I just got a mortgage through them. They charge a fee but are very good. Application submitted on Wed survey on Friday approval on Monday.

9 months shouldn't be an issue as long as you have been working and have 1 month left before your contract ends. Also it depends on how much deposit you have.

[PurpleGorilla]

Lots of presumptions in your post.

MEW MEW MEW

[SueEllen]

I can feel the sacrifices and hard work from here. Ah the hardship of 2x single income for a 4 bedder in London.

Lots of presumptions in your post.

[PurpleGorilla]

The answer is it depends on you.

As purplegorilla indicated it's to do with the loan to value (LTV) of your property.

(You should really do your research yourself as all this information is available on sites like Moneysavingexpert and from mortgage brokers. )

Anyway if now you are buying at 90% LTV and have to get a 30 year term to have manageable payments, after 2+ years due to major home improvements, house price increases or a mixture of both when you remortgage your LTV could fall to under 80%. You can then either continue with the longer term at much reduce repayments, change to a much shorter term with the same repayments or change to a shorter term with lower repayments. (This is why it depends on you.)The smaller your LTV the less risk for the mortgage lender so the interest rates are lower.

BTW Purplegorilla a lot of people I know had to do things that were classed as major renovations. So even when house prices stayed static in my area, which they did for a while, when they remortgaged they reduced their LTV.

I can feel the sacrifices and hard work from here. Ah the hardship of 2x single income for a 4 bedder in London.