Reply to: Mortgages in this crunchy environment

[Peter Loew]

Close of Business

The rates on the site aren't necessarily the rates they offer to contractors

Speak to Contractor Money - they can secure some good rates

Just did. They're going to send me some info. Cheers.

[Peter Loew]

I've got my FA looking at mortgages for me at the moment, so the thread is of interest. What sort of "deal" re. salary/dividends and the general contractor gig did they give?

I'm pretty new to the contract game and the missus is nagging - er suggesting - that we should spend on a bigger pad, wouldn't ya know!

Cheers

A quick illustration would be that they ask for your day rate, and then work out the average salary it equates to, then do the multiples (x4) to get the approx amount you can borrow. They don't care about how you pay yourself (e.g. divs / salary etc.) they care about what goes into your business bank account and your personal bank account.

[Bear]

COB? yeah just checked now, they're all 0.6X% above BoE. Terrible.

Close of Business

The rates on the site aren't necessarily the rates they offer to contractors

Speak to Contractor Money - they can secure some good rates

[Peter Loew]

Yup - They changed their rates on Friday COB so had to get in quick

COB? yeah just checked now, they're all 0.6X% above BoE. Terrible.

[51st State]

That's a bloody good rate. I got mine agreed with Intelligent Finance for 0.44% above base rate.

Did you get a normal 'contractor' mortgage?

I've got my FA looking at mortgages for me at the moment, so the thread is of interest. What sort of "deal" re. salary/dividends and the general contractor gig did they give?

I'm pretty new to the contract game and the missus is nagging - er suggesting - that we should spend on a bigger pad, wouldn't ya know!

Cheers

[Ardesco]

Has anyone managed to get a mortgage (not celf cert) with 2 years accounts but NO current contract ? My current gig finishes end of April and mortgage product finishes mid June, Im looking to move to different mortgage provider so need to apply around April, Im pretty sure I wont be getting renewed and to be honest want a month off so wont have a contract.

First Direct are doing an offset deal fixed 4.75% looks good

Ah looking good I shall have to remember to check first direct, our mortgage tie in period is coming to an end soon. The 4.99% for 5 years doesn't look bad either.

[Bear]

That's a bloody good rate. I got mine agreed with Intelligent Finance for 0.44% above base rate.

Did you get a normal 'contractor' mortgage?

Yup - They changed their rates on Friday COB so had to get in quick

[Peter Loew]

Yes - I've just got a mortgage agreed with Halifax on Thursday. 0.19% above base rate.

That's a bloody good rate. I got mine agreed with Intelligent Finance for 0.44% above base rate.

Did you get a normal 'contractor' mortgage?

[Bumfluff]

Has anyone managed to get a mortgage (not celf cert) with 2 years accounts but NO current contract ? My current gig finishes end of April and mortgage product finishes mid June, Im looking to move to different mortgage provider so need to apply around April, Im pretty sure I wont be getting renewed and to be honest want a month off so wont have a contract.

First Direct are doing an offset deal fixed 4.75% looks good

[DimPrawn]

Now is a good time to borrow £1,000,000

Next year interest rates will be zero and £1,000,000 will be worthless.

[Tensai]

Supplementary question - what sort of multiples did you apply for/get? Are the days of 5 x income behind us?

Not that I'd be dumb enough to get anything that big....

[tay]

do people think there is going to be a drop in house prices over the next couple of years?

I'm thinking of moving up from flat to house and am considering selling my place as soon as possible and then moving into rented house for a year or so and see what the market does.

At least this way I could release any growth in my current place.

Wrong forum, we never discuss house prices around here. Although I am sure if we did, we would all reach a happy consensus in no time.

[oracleslave]

do people think there is going to be a drop in house prices over the next couple of years?

Nah mass immigration will increase demand for rental property so buy as many flats as possible now.

[~Craig~]

do people think there is going to be a drop in house prices over the next couple of years?

I'm thinking of moving up from flat to house and am considering selling my place as soon as possible and then moving into rented house for a year or so and see what the market does.

At least this way I could release any growth in my current place.

[Bear]

Anyone tried to get a contractor mortgage in the last couple of months? I'm hearing dire things about the lending market, and "contractor" mortgages tend to challenge the average underwriter's brain a bit. I guess in these credit crunchy times that's going to be even worse.

I know about the specialist companies but too early to start looking for my re-mortgage yet. Just looking for recent experiences.

Yes - I've just got a mortgage agreed with Halifax on Thursday. 0.19% above base rate.