Reply to: Mortgages

[northernladuk]

Don't be silly nobody ever does that

Ain't that the truth

[d000hg]

Did a search

Don't be silly nobody ever does that

[rocktronAMP]

My wife in an independent Mortgage Consultant. She is busier now, than she has ever been. There are more and more moving outside London...

QQ: Where are they all moving to? So I can avoid it or some of us.

[northernladuk]

How did you accidentally open a thread a year old?!

Did a search

[d000hg]

How did you accidentally open a thread a year old?!

[Freelancer Financials]

I have already bought the house since then

I just realised that I replied to a post that was posted over 12 months ago, I thought it was Feb 2022 when it was Feb 2021! Oh well, glad you got the house and everything turned out okay.

[cannon999]

Don't worry, nothing has changed. They're still using contract rate.

I have already bought the house since then

[Freelancer Financials]

Really? I got a mortgage offer from Halifax just over a week ago and they were only interested in my day rate. Has something changed recently? Slightly worried now if my house purchase falls through I will struggle to get a mortgage again lol. What interest rate are you being quoted?

Don't worry, nothing has changed. They're still using contract rate.

[Freelancer Financials]

Any other contractor here finding it difficult to get any substantial mortgage at the moment?
Halifax is not looking at day rates and contract length anymore, only last two tax years of self assessments
CMME says it's tulip at the moment, especially when you have a gap in company income due to COVID in the last couple of months.
Best I was quoted so far is 1/3d of what I was quoted 18 months ago.
Anyone who knows a lender who is still a bit flexible?

I can categorically confirm that Halifax hasn't changed its contractor policy. They're still using gross contract income. Normally they allow gaps between contracts of up to 6-8 weeks, but that's not cast in stone. They can be flexible, especially if the break was due to illness. But there are plenty of other lenders that would be even more flexible regarding your gap, such as Accord Mortgages. I agree that lenders have been tightening underwriting criteria, but if you use an experienced contractor mortgage broker/specialist, they should be able to help you.

[hobnob]

And yet I am registered with experian and that's what they are telling me.

I recommend signing up with ClearScore (Equifax) and Credit Karma (TransUnion) too. I've found that they all give different results; at one point, I had a perfect score from Experian while I was in the "Needs Work" category at Credit Karma (i.e. their highest risk group). You can get free results from all 3 due to GDPR, although I don't know whether that will change post-Brexit. Generally, I've found that Credit Karma is the least accurate but the most informative (from free reports).

[northernladuk]

True - current contract ends 31st March - but normally dont they ask to see current and previous contract? Maybe with only a month covering to March might red-flag it?

Last time this was the ask:
· Copies of your previous 12 months and current contracts (signed by both parties with the T&C’s)

· Copies of both applicants previous 3 months business & personal bank statements

· If any background BTL’s – signed copy of the tenancy agreement s and proof of 3 months rental (previous 3 months bank statements)

· Copies of your previous 3 months payslips and latest years P60 (only if any applicant is employed)

You won't need payslips as a contractor. They will take your SA302 which is evidence of earnings but will need a few years.

Either way. You've got a slightly non standard situation with out of date information so speak to a broker. Miss it first time and you go perm you could have a problem if time has moved on.

[ladymuck]

True - current contract ends 31st March - but normally dont they ask to see current and previous contract? Maybe with only a month covering to March might red-flag it?

Last time this was the ask:
· Copies of your previous 12 months and current contracts (signed by both parties with the T&C’s)

· Copies of both applicants previous 3 months business & personal bank statements

· If any background BTL’s – signed copy of the tenancy agreement s and proof of 3 months rental (previous 3 months bank statements)

· Copies of your previous 3 months payslips and latest years P60 (only if any applicant is employed)

No idea. That's the sort of thing I'd ask the advice of a broker for

[DelboyTrotter]

You're not perm yet, can you not get the extra using your current status?

True - current contract ends 31st March - but normally dont they ask to see current and previous contract? Maybe with only a month covering to March might red-flag it?

Last time this was the ask:
· Copies of your previous 12 months and current contracts (signed by both parties with the T&C’s)

· Copies of both applicants previous 3 months business & personal bank statements

· If any background BTL’s – signed copy of the tenancy agreement s and proof of 3 months rental (previous 3 months bank statements)

· Copies of your previous 3 months payslips and latest years P60 (only if any applicant is employed)

[ladymuck]

Making the switch to Perm in April after 12 years contracting and was looking at additional borrowing to fund extension but existing deal was via Freelancer Financials - looking at my existing lender (2 years into a 5 year fixed rate), for income proof for an employed applicant they only need 1 month pay slip - been a long time since I've applied as an "employee" - I always thought it was 3 months payslips? Or is 3 months of bank statements?
Nothing of particular note at my current lenders help page:

https://www.clydesdalebankintermedia.../how-to-apply/

You're not perm yet, can you not get the extra using your current status?

[xenomorph]

anyone used bennison brown mortgages?