Reply to: Mortgage

[Spartacus]

Interest rates up..... we're doomed!

Boomed, my friend, boomed.

[Sockpuppet]

Interest rates up..... we're doomed!

[bobhope]

Move house first. You can pick and choose the best deal without any "new contractor" hassles.

Or are you waiting for "the crash"?

It's a 'correction' and not a 'crash'. People tend to get upset if you say the word crash.

[Sockpuppet]

Or are you waiting for "the crash"?

3 weeks and counting by my guess.

[XLMonkey]

hmm i wonder how many months they would give you an offer in pincipal, anyone done it before?

They're usually good for 6 months, occasionally for 12 months depending on the provider.

[wendigo100]

No first name isn't ED

Unfortunately we couldn't just take the mortgage with us, because we'd need to renegotiate as we looking at increasing our mortgage by about 50% for a larger property - as we now both earn alot more than we did when we originally took out the mortgage.

Move house first. You can pick and choose the best deal without any "new contractor" hassles.

Or are you waiting for "the crash"?

[Alf W]

Talk to your existing mortgage provider as they will usually offer you something based on your payment history and ignore your income.

Alternatively, your bank will have some sort of pre-approved mortgage limit against you. They don't like admitting they have these but just stroll in and ask them straight off what it is and they'll um and aah and then tell you. I did this a couple of years ago and they affered me an outrageous amount straight off which was way higher than I was comfortable with (fortunately the wife wasn't with me so I toned it down a couple of hundred thou before I told her).

[2scoops]

hmm i wonder how many months they would give you an offer in pincipal, anyone done it before?

[Bagpuss]

so i can just arrange a mortgage now for a larger amount with my current provider and then just put it on hold until we find a house later on in the year?

Well that depends if you can raise what you need on your current income. But if you can and you get an offer in principal it can last for a few months.

The traditional risk adverse lenders (mainly the building societies) are scared of contractors/ the self employed, especially if you have less than 3 years accounts. If you have to wait until you are in contract then an intermediary is the best way.

Best of luck

BP

[2scoops]

so i can just arrange a mortgage now for a larger amount with my current provider and then just put it on hold until we find a house later on in the year?

[Bagpuss]

No first name isn't ED

Unfortunately we couldn't just take the mortgage with us, because we'd need to renegotiate as we looking at increasing our mortgage by about 50% for a larger property - as we now both earn alot more than we did when we originally took out the mortgage.

You can have problems depending on the Lender. Many will require 3 years worth of accounts. The easiest way may be to use a broker, but this could also mean a crapier deal.

I would arrange a mortgage in principal now before you go contracting

[2scoops]

thanks for the advice

we will have enough currently in the bank for about a 15% deposit and then with the money we will hopefully make on the sale of our first house this should bump us up to being able to stump up a 30% deposit on a new mortgage

[Bear]

Assuming you get a contract then you're laughing. You'll probably get an offer far higher than on your permie salaries. (I've been offered just over half a mill without taking my partner into account).

There's a certain financials company specialising in contractors who can help (do a search)

If you don't get a contract - well that's harder.

[lukemg]

All depends on how much equity/deposit you can bring to the table. If you can kick in 25%, then you are laughing, self-cert easy (they know they will get their 75% back if it/you go norks up). You also have a good record of paying the current mortgage which helps, hopefully not too much debt etc.
If you are looking for them to kick over >90%, that will be more of a struggle.
HTH

[ChimpMaster]

Just go contracting first for a couple of years and buy ur next house cash without any mortgage.