Reply to: Mortgage Lenders Who Only Use Experian

[northernladuk]

Thanks for your helpful replies.

The mortgage from Accord says it is only for people on more than £75,000. I dont earn that much, i wish i did

None of us do. Not one of us on over 13 to 14k . Maybe you mean income, which can be proven by an accountant even if you don't actually withdraw that much.

You see too many negatives. Get you hand in your pocket and get Freelancer on board.

[revelator1969]

Another lender that we're using for contractors that is very contractor friendly is Accord.

We really like them because they use a commen sense approach to underwriting and treat every case individually on it's own merits.

They also consider cases that have adverse credit.

https://www.mortgagestrategy.co.uk/a...sed-mortgages/

Thanks for your helpful replies.

The mortgage from Accord says it is only for people on more than £75,000. I dont earn that much, i wish i did

[Freelancer Financials]

Accord Mortgages

Another lender that we're using for contractors that is very contractor friendly is Accord.

We really like them because they use a commen sense approach to underwriting and treat every case individually on it's own merits.

They also consider cases that have adverse credit.

https://www.mortgagestrategy.co.uk/a...sed-mortgages/

[Freelancer Financials]

Halifax need 2 years books. I called Nationwide, it seems they require 2 years books also.

Nationwide have a contractor policy, the person you dealt with at Nationwide doesn't know this.

I'm not sure if I'm allowed to post this, but it's useful. If the moderator wants to remove, then feel free to do so. I just thought it would explain Nationwides criteria towards contractors.

https://www.freelancerfinancials.uk....ding-criteria/

[Freelancer Financials]

Same profession. Doesn't matter about style of engagement.

That's absolutely correct.

[Freelancer Financials]

Thanks for your reply. On your website it says this regarding the Halifax requirements for a contractor mortgage. 'Contractors on their first contract must have history in the same profession for at least 2 years;'

I have spoken to someone from your company today but i need to get my accounts from my accountant. I dont know why you guys are the only brokers that have asked for my accounts but ill get them sent over tomorrow.

I read halifax are flexible on the minimum 2 years if you have a LTV of 70%. I need 90% LTV.

We look at accounts and contract rate so that we can decide which is the best approach for you. Some lenders accept 1 years accounts. The majority of lenders use stricter credit scoring when it's a higher LTV like 90%. Your issue with Halifax is not related to the length of time you've been contracting, it's to do with credit scoring. Irrespective of whether you've been contracting for 6 months or 2 years.

[revelator1969]

Nationwide are a good lender and they have a good contractor policy. But they also have strict credit scoring systems. Before your broker submits an application, make sure he discusses the case with them first. You don't want to get another decline. That won't help you at all.

If I were your broker, I would be talking to Accord Mortgages. Unfortunately, they only work with a hand full of mortgage brokers when it comes to contractor mortgages. So you need to make sure that your broker is approved by them.

The broker in question is just seeing what they can find for me, i have not decided i will go with them. I have contacted yourselves and an advisor at my accountants. Hopefully somebody can help. I agree i dont think its a good mover applying for a mortgage when you might get turned down and do more harm to your credit rating.

[Freelancer Financials]

I'm pretty sure that the ombudsman is only interested after you've exhausted all other avenues directly.

To be perfectly honest, there's not a lot the FOB can do when it comes to a credit scoring situation. The lender has full descretion to do what they like. It's down to the broker to fight the corner of the client and escalate within the lender.

[revelator1969]

The Mortgage Brain have misunderstood Halifax's contractor policy. You don't need two years contracting history. If you're an IT Contractor they don't have a minimum income requirement. But if you're a non IT Contractor you need to be on a minimum daily rate of £312.50. You're in this predicament because you're not getting advice from a contractor mortgage specialists. Your first course of action is to get your broker to sort this out with the underwriters. If your broker doesn't have sufficient clout to sort it out then you need to be careful who you go to next. You can't just keep submitting applications otherwise this will effect your credit score. You need a lender that will assess you on your gross contract income and also use a common sense approach to your credit score predicament. One such lender is Accord. Their rates are pretty good as well.

Thanks for your reply. On your website it says this regarding the Halifax requirements for a contractor mortgage. 'Contractors on their first contract must have history in the same profession for at least 2 years;'

I have spoken to someone from your company today but i need to get my accounts from my accountant. I dont know why you guys are the only brokers that have asked for my accounts but ill get them sent over tomorrow.

I read halifax are flexible on the minimum 2 years if you have a LTV of 70%. I need 90% LTV.

[Freelancer Financials]

Thanks for the reply. I wish it was that easy for me. This broker has suggested applying to Nationwide and hope that the discrepancy wont be a problem.

Nationwide are a good lender and they have a good contractor policy. But they also have strict credit scoring systems. Before your broker submits an application, make sure he discusses the case with them first. You don't want to get another decline. That won't help you at all.

If I were your broker, I would be talking to Accord Mortgages. Unfortunately, they only work with a hand full of mortgage brokers when it comes to contractor mortgages. So you need to make sure that your broker is approved by them.

[Freelancer Financials]

2012 was a long time ago that lender may have changed by now. Its something i would need to check.

Halifax need 2 years books, i only have 16 months.




Ok many thanks for the information. I dont really need future borrowing, i just need a mortgage. I will see to the discrepancy and hopefully get my credit scores back to normal.

I was not aware the lender would do another credit search, i will ensure everything is all good.


I contacted a broker called The Mortgage Brain. The woman says my situation makes it tricky because i only have 16 months as a contractor and my earnings are not high enough for some lenders. She has suggested trying Nationwide and hope that the discrepancy is not an issue.

The Mortgage Brain have misunderstood Halifax's contractor policy. You don't need two years contracting history. If you're an IT Contractor they don't have a minimum income requirement. But if you're a non IT Contractor you need to be on a minimum daily rate of £312.50. You're in this predicament because you're not getting advice from a contractor mortgage specialists. Your first course of action is to get your broker to sort this out with the underwriters. If your broker doesn't have sufficient clout to sort it out then you need to be careful who you go to next. You can't just keep submitting applications otherwise this will effect your credit score. You need a lender that will assess you on your gross contract income and also use a common sense approach to your credit score predicament. One such lender is Accord. Their rates are pretty good as well.

[Freelancer Financials]

WCS. It doesn't mean a lender has to pay any attention to it of course, but it might give you opportunity to plead your case to an underwriter if the application refers/rejects.

HBOS/Lloyds/TSB used Experian data for their scorecard in 2012. Not sure about Equifax. Most lenders seem to use CallCredit for income verification (to see what's going through your current account). I also thought Halifax was a 'contractor friendly' lender who would work on your contract only? Provided you've a reasonable track record (CV) and at least a month to remaining on your current contract then they're happy.

Not necessarily. I agree Halifax are Contractor Friendly when it comes to lending criteria but they still have to carry out a credit search are score like every other lender. Depending on how adverse the credit information is a mortgage broker can negotiate with an underwriter on your behalf. Especially if one of these reports is showing conflicting results. Are you using a broker?

[revelator1969]

Cant you wait for a couple years before buying a property?
With Brexit round the corner, house prices will crash by 50% and then you can pick up a bargain with no need for a mortgage

The experts are never right so where did this gem of information come from?

[fullyautomatix]

Cant you wait for a couple years before buying a property?
With Brexit round the corner, house prices will crash by 50% and then you can pick up a bargain with no need for a mortgage

[revelator1969]

Am sure you'll be fine. Good luck.

many thanks for the recommendation