Advice on best way to prepare for upcoming mortgage application

[Scrag Meister]

Advice on best way to prepare for upcoming mortgage application

My current 2 year fixed mortgage goes onto the Standard Variable Rate mid Feb 2011 so I need to hunt for a new mortgage (preferably fixed again).

I've only just started a new contract with a 3 month gap between the last one, my war chest is healthy and I have no debts other than a large mortgage. I'm interest only and if I were to plough some money into paying off some of the capital then I would go into the higher tax band of my annual Corporation Tax from my limited and I don't want to do that but I could if pushed.

So what tips would you give me to get the thumbs up from the mortgage underwriters when I apply for a new mortgage ? would they want to see my personal bank account statements ? (if so should I whack 10K now into my personal bank from my limited company ?) or would they want to see 2 years worth of statements from my limited company ??? (again the balance is very healthy on this account). My credit rating is good as I've had a couple of checks on done me recenly (and I know this leaves a finger print on the checks database).

Should I wait another month or two whilst being in this new contract and then apply for a mortgage to show that its a reasonably secure contract or should that not matter ?

The new contract is a higer rate than the last, same industry etc.

Your advice is appreciated.

1. Ask your current lender first as I got a good rate as a loyalty bonus from my lender.
2. I think you meant Income tax band not Corporation tax as you pay that on profit whatever.
3. Mine wanted to see business and personal statements, year end accounts for at least 2 years, wife's payslips.
4. Waiting won't prove anything as long as the company is bringing in some £s.
5. By all means explain your forecast for the coming year, if its good news!
6. Get as big a deposit as you can.

GL

[Wanderer]

...And your reply contained no useful mortgage advice whatsoever, so it didn't really add much to the "discussion" you seemed so keen to promote. My post, on the other hand, did supply him with some useful, practical advice.

Well meaning, I'm sure but every other question that gets asked here is answered by some person suggesting that they Google it. My point is that it didn't seem to me that the original poster had some difficulty with Googling but rather than he was hoping that others here would share their personal experiences.

I regret that I can't contribute much to this particular discussion, having obtained my flexible mortgage back in the good old days when they would lend money to buy a broom cupboard and they were happy to look at the company accounts to see the profits. I was hoping to read some interesting replies though.

[ratewhore]

I went with my bank, First Direct. They wanted 2 years accounts and worked the figures from the net profit.

And it's an offset, which is a billy bonus for contractors...

HTH.

[DeludedAussie]

1st time buyer this summer. All Underwriters wanted to see from me was 3 years of audited accounts (I also put down a 30% deposit).

Talk to contractor mortgages - They were happy to give me a pretty large mortgage provided I paid 25%

Rates were 3.19% plus arrangement fee of 1500

[Flashman]

So what tips would you give me to get the thumbs up from the mortgage underwriters when I apply for a new mortgage ? would they want to see my personal bank account statements ? (if so should I whack 10K now into my personal bank from my limited company ?) or would they want to see 2 years worth of statements from my limited company ??? (again the balance is very healthy on this account). My credit rating is good as I've had a couple of checks on done me recenly (and I know this leaves a finger print on the checks database).

1st time buyer this summer. All Underwriters wanted to see from me was 3 years of audited accounts (I also put down a 30% deposit).

[nomadd]

I think he was kind of hoping that some people here could share their experiences getting mortgages and give him some hints about what he should ask for or brokers who would specialise in this type of mortgage. It is a discussion forum after all....

...Yet you fail to mention he started the thread in the wrong forum. And then "bumped" it back to the top in order to provoke a response when he didn't get one. That's pretty childish, as well as being poor forum etiquette.

...And your reply contained no useful mortgage advice whatsoever, so it didn't really add much to the "discussion" you seemed so keen to promote. My post, on the other hand, did supply him with some useful, practical advice. It also directed him to the pages on this site which offer both a Contractors Guide to Mortgages, as well as a facility to contact a contractor-aware mortgage provider for advice.

Just thought I'd point those minor issues out.

[Wanderer]

Crazy idea, here: Why not go and speak to some? Or just pick up the phone for an informal chat?

I think he was kind of hoping that some people here could share their experiences getting mortgages and give him some hints about what he should ask for or brokers who would specialise in this type of mortgage. It is a discussion forum after all....

[TFour]

Is going onto the SVR necessarily a bad thing with rates as they are at the moment? Depends what it is I suppose (plus risk of increase) versus the arrangement cost and rate on a fixed one.

[Clippy]

Your first call should be to your existing mortgage provider to see, assuming you are happy with your current fixed deal, if it can be extended/renewed.

If not, the next question is what alternative mortgages can they provide.

If you get no joy with them, then speak to contractor mortgages - they are regularly mentioned on here so do a quick search.

[nomadd]

I haven't had any replies, so I bumping this, I'm just asking what the mortgage underwriters and the brokers want to see in order to grant you a mortgage as a contractor these days. One thing would be your personal credit rating... can you think of any others that you have experienced recently ????!?!???

please !

Crazy idea, here: Why not go and speak to some? Or just pick up the phone for an informal chat?

If your on-foot navigation skills are poor, and you also have a phobia of phones, you might want to try: Contractor Mortgage Quotation Request - Mortgages :: Contractor UK

[sbakoola]

I haven't had any replies, so I bumping this, I'm just asking what the mortgage underwriters and the brokers want to see in order to grant you a mortgage as a contractor these days. One thing would be your personal credit rating... can you think of any others that you have experienced recently ????!?!???

please !

[sbakoola]

Advice on best way to prepare for upcoming mortgage application

My current 2 year fixed mortgage goes onto the Standard Variable Rate mid Feb 2011 so I need to hunt for a new mortgage (preferably fixed again).

I've only just started a new contract with a 3 month gap between the last one, my war chest is healthy and I have no debts other than a large mortgage. I'm interest only and if I were to plough some money into paying off some of the capital then I would go into the higher tax band of my annual Corporation Tax from my limited and I don't want to do that but I could if pushed.

So what tips would you give me to get the thumbs up from the mortgage underwriters when I apply for a new mortgage ? would they want to see my personal bank account statements ? (if so should I whack 10K now into my personal bank from my limited company ?) or would they want to see 2 years worth of statements from my limited company ??? (again the balance is very healthy on this account). My credit rating is good as I've had a couple of checks on done me recenly (and I know this leaves a finger print on the checks database).

Should I wait another month or two whilst being in this new contract and then apply for a mortgage to show that its a reasonably secure contract or should that not matter ?

The new contract is a higer rate than the last, same industry etc.

Your advice is appreciated.