Contractor mortgage with first year completed, 70% LTV

[No2politics]

Contractor mortgage with first year completed, 70% LTV

Hello. When comparing mortgages I wouldn't get too caught up in the size of the fee. It's usually possible to just add the fee to the mortgage balance. Therefore the fee is only one component of the cost, you need to consider both the fee and the apr. the more you are looking to borrow, the more important the apr is. I use this spreadsheet to compare deals
http://forums.moneysavingexpert.com/....php?t=1157173

[Freelancer Financials]

1)In your position it's not about trying to get the BEST mortgage, it's about trying to get A mortgage. Part of being a contractor, you have to pay a bit more.
2)Why is your broker charging fees, not getting commission from the lender?

"It's about trying to get a mortgage? Part of being a contractor, you have to pay more". Not True, maybe in the past, when many contractors applied for self-cert mortgages.

Contractors can now obtain competitive rates from high street lenders based on their contract rate or accounts. A number of lenders like Halifax and Woolwich will accept one year's accounts. Many lenders today will also consider retained profits as well as salary and dividend drawings. Lenders such as Halifax, Clydesdale, Virgin, Skipton will lend to contractors based on their contract rate. These lenders do not charge contractors more. Yes, it's difficult if you go direct but there are Contractor Mortgage Specialists that will do all the leg work for you.

[d000hg]

Just completed first year's accounts and it’s now time to re-mortgage. I thought, I have found good rate of 2.99% for 70% LTV fixed for 4 years with Nationwide. But they need at least 2 years accounts... DAMN!

I didn’t knew this before, maybe I was really ignorant..

So far talked to ContractorMortgagesUK, they charge £495 as their fees, which I think is really high.
What other options do I have? Does this mean that I will need to get a higher rate mortgage being a contractor or I can still get 2.99 as with Nationwide? Please help...

1)In your position it's not about trying to get the BEST mortgage, it's about trying to get A mortgage. Part of being a contractor, you have to pay a bit more.
2)Why is your broker charging fees, not getting commission from the lender?

[Freelancer Financials]

Just thought I would update all those contractors who happen to stumble on this thread. The mortgage market has improved significantly for contractors since 2012. Many more lenders are now willing to assess contractors affordability based on their daily/hourly contract rate.

This means that you don’t have to rely on the traditional method of using accounts, pay slips or tax returns, which is unlikely to reflect the total earnings that you have at your disposal for income verification on a mortgage application.

But check first with a Contractor Mortgage Broker, whether you qualify. Some lenders like Halifax will also consider one year's accounts.

[northernladuk]

Not sure what problems you had with Contractor Money, DeludedAussie. I used them this year and they were better than any of the others I tried. I initially tried an independent broker and then tried Contractor Money and one other specialist provider, CM came back cheaper (no arrangement fee on top of their commission like the other provider wanted to charge me) and everything was sorted out very quickly. I have no concerns in recommending them.

We are talking about DeludedAussie here.....

[administrator]

Not sure what problems you had with Contractor Money, DeludedAussie. I used them this year and they were better than any of the others I tried. I initially tried an independent broker and then tried Contractor Money and one other specialist provider, CM came back cheaper (no arrangement fee on top of their commission like the other provider wanted to charge me) and everything was sorted out very quickly. I have no concerns in recommending them.

[Moscow Mule]

Another vote for contractor money from me. Sorted out mortgages a couple of times for me. Always been professional.

[saptastic]

Just completed first year's accounts and it’s now time to re-mortgage. I thought, I have found good rate of 2.99% for 70% LTV fixed for 4 years with Nationwide. But they need at least 2 years accounts... DAMN!

I didn’t knew this before, maybe I was really ignorant..

So far talked to ContractorMortgagesUK, they charge £495 as their fees, which I think is really high.
What other options do I have? Does this mean that I will need to get a higher rate mortgage being a contractor or I can still get 2.99 as with Nationwide? Please help...

Try Contractor Money - from my memory they dont charge a fee and give really good service
IT Contractor Mortgages Information and Quotation :: Contractor UK

[DeludedAussie]

Just completed first year's accounts and it’s now time to re-mortgage. I thought, I have found good rate of 2.99% for 70% LTV fixed for 4 years with Nationwide. But they need at least 2 years accounts... DAMN!

I didn’t knew this before, maybe I was really ignorant..

So far talked to ContractorMortgagesUK, they charge £495 as their fees, which I think is really high.
What other options do I have? Does this mean that I will need to get a higher rate mortgage being a contractor or I can still get 2.99 as with Nationwide? Please help...

Contractor money were a bunch of chancers and I would not use again - I spoke to ellen / luke and a few others - They were always too busy to take my calls

Drop martin from AS financials a call - cant reccomend him highly enough

[Martin@AS Financial]

Most lenders today will want 2 years worth of accounts demonstrating salary / dividend or may oacassionally work off retained profit. There are however a couple of lenders out there that are sympathetic to IT Contractors and will work off your daily rate. It is important not to make applications based on rate alone without understanding the lenders criteria as declines will have an adverse effect on your credit score.

[kaiser78]

Barclays / Woolwich go direct

[IR35FanClub]

I've just had a mortgage through contractor financials. good service, not an astounding deal but not bad either. fixed rate 4.49 2 years 85% ltv. the underwriter (ie the bank) was a bit slow, took about 4 weeks, but other than that can't fault them. the mortgage product is good too as you can over pay and draw down. you can also opt for a full offset but at a different rate.
All they need is your contract rate to give a quote.
i tried nationwide and Chelsea before then and got refused. they couldn't understand the difference between company profits and my income... ie what i had taken as a dividend previously vs what i could take if i needed to pay a mortgage. foolish.
[edit] i forgot to add they've got lots of other deals depending on whether you want fixed or variable and how much deposit you have , and they don't charge a fee to you... the bank pays them a referral.. disclosed when you make the application.

[northernladuk]

Just completed first year's accounts and it’s now time to re-mortgage. I thought, I have found good rate of 2.99% for 70% LTV fixed for 4 years with Nationwide. But they need at least 2 years accounts... DAMN!

I didn’t knew this before, maybe I was really ignorant..

So far talked to ContractorMortgagesUK, they charge £495 as their fees, which I think is really high.
What other options do I have? Does this mean that I will need to get a higher rate mortgage being a contractor or I can still get 2.99 as with Nationwide? Please help...

Did you actually speak to them and advise them of your situation? When I was looking for a mortgage I spoke to both the Halifax and someone else who I forgot. I advised I had 1 year and was 8 months in to second year. Say that was fine, they had a form to fill in to contact my accountant so he coulld confirm and what I had missing they would use my permie details. Never took the mortgage to be fair but they had a standard process of speaking to accountants.

[Notascooby]

Try contractor financials / contractor money

You may not get to cheery pick the best deal but there's no fee to you and a whole lot less stress.

[legal]

Just completed first year's accounts and it’s now time to re-mortgage. I thought, I have found good rate of 2.99% for 70% LTV fixed for 4 years with Nationwide. But they need at least 2 years accounts... DAMN!

I didn’t knew this before, maybe I was really ignorant..

So far talked to ContractorMortgagesUK, they charge £495 as their fees, which I think is really high.
What other options do I have? Does this mean that I will need to get a higher rate mortgage being a contractor or I can still get 2.99 as with Nationwide? Please help...