Getting a mortgage when switching to contracting

[NorthWestPerm2Contr]

Speak to Contractor Money. They are very good. Things may have tightened up in the last two years. but certainly then it was pretty easy. In addition to CVs, bank statements (personal and business), contracts, they may choose to undertake due diligence on your radiator bleeding skills.

Contractor Financials sorted mine with very little in terms of paper work - last few contracts, CV and credit check was sufficient.

[Martin@AS Financial]

Exactly that. The broker I spoke too seemed to think the chances of him being audited for bulltulipting was remote.

Bold - every week lenders are removing brokers from their panel for not being able to fufil audit requests.

Banks share information so you only have to be struck off by one lender and the rest will follow suit if they deem the broker to be high risk.

[DimPrawn]

What your referring to is fasttrack. Essentially, when a client has a good enough credit score and sufficient equity / deposit, a lender takes the brokers word on the basis that they have checked the accounts / payslips.
This is not a self certifying tool however as cases are randomly sampled by the lender. It takes a foolish broker to start making up incomes as they will simply be removed from the lender panel if they have massaged the figures and cannot back up the claims with documentary evidence.

Exactly that. The broker I spoke too seemed to think the chances of him being audited for bulltulipting was remote.

[Martin@AS Financial]

Or use a broker.

Some of them certify for you, and seem pretty blase (i.e you make it all up and the broker puts it in writing it's all legit).

So self certify has become broker certify.

What your referring to is fasttrack. Essentially, when a client has a good enough credit score and sufficient equity / deposit, a lender takes the brokers word on the basis that they have checked the accounts / payslips.
This is not a self certifying tool however as cases are randomly sampled by the lender. It takes a foolish broker to start making up incomes as they will simply be removed from the lender panel if they have massaged the figures and cannot back up the claims with documentary evidence.

[Scruff]

any pictures?

Plenty, but Keyboard Warriors need not apply. Try jennastube, since they have all been deemed suitable

[Troll]

PM me if you would like her details.

any pictures?

[Scruff]

I have recently returned to contracting (Jan 2013) after three years as a Permie.

I have also just purchased another house and MY WIFE is a mortgage advisor and we got our new mortgage based on a signed copy of my contract and my up to date CV. 90 % LTV.

I also tried a specialist Contractor Mortgages company and they could not offer any better...

PM me if you would like her details.

[Old Greg]

Or use a broker.

Some of them certify for you, and seem pretty blase (i.e you make it all up and the broker puts it in writing it's all legit).

So self certify has become broker certify.

Contractor Money appear to have come to an agreement with certain departments of certain mortgage providers as to how they will demonstrate earnings.

[Old Hack]

Or use a broker.

Some of them certify for you, and seem pretty blase (i.e you make it all up and the broker puts it in writing it's all legit).

So self certify has become broker certify.

Really? I thought they'd stamped down on that!

EDIT:
Forgot to add, we used one of these in the 90's and yes, it was just like that!

[DimPrawn]

Or use a broker.

Some of them certify for you, and seem pretty blase (i.e you make it all up and the broker puts it in writing it's all legit).

So self certify has become broker certify.

[Old Greg]

I understand that generally this is a poor timing for getting a mortgage, but I hear Halifax require only 3 months of audited contracts for an IT contractor. Other lenders and other types of contract require a more typical 2-3 years of accounts.

That sounds too good to be true. Could anyone who has recently went contracting share their (positive) experience of obtaining a mortgage please?

How do you prove that you are an IT contractor? GIC code of the limited company? Contract wording?

Thanks

PS Could not find the answer in the stickies or the forum.

Speak to Contractor Money. They are very good. Things may have tightened up in the last two years. but certainly then it was pretty easy. In addition to CVs, bank statements (personal and business), contracts, they may choose to undertake due diligence on your radiator bleeding skills.

[Old Hack]

I understand that generally this is a poor timing for getting a mortgage, but I hear Halifax require only 3 months of audited contracts for an IT contractor. Other lenders and other types of contract require a more typical 2-3 years of accounts.

That sounds too good to be true. Could anyone who has recently went contracting share their (positive) experience of obtaining a mortgage please?

How do you prove that you are an IT contractor? GIC code of the limited company? Contract wording?

Thanks

PS Could not find the answer in the stickies or the forum.

It used to be 3 months bank statements and your CV, which they passed to an underwriter. Now they expect a letter from your accountant outlining your earnings over the past 3 years. However, this is starting to ease up.

It used to be pig easy, but now self certifying is not allowed, and you have to Prove your earnings. Although they did still count the contract worth, not what you pay yourself.

[p3t3]

I understand that generally this is a poor timing for getting a mortgage, but I hear Halifax require only 3 months of audited contracts for an IT contractor. Other lenders and other types of contract require a more typical 2-3 years of accounts.

That sounds too good to be true. Could anyone who has recently went contracting share their (positive) experience of obtaining a mortgage please?

How do you prove that you are an IT contractor? GIC code of the limited company? Contract wording?

Thanks

PS Could not find the answer in the stickies or the forum.