Reply to: Mortgage rules relaxed for contractors

[Freelancer Financials]

Hi Scruff,
I am just going through the process of moving house but my current provider is not as flexible. Does your wife offer mortgage services? Could you ping me either way. I would really appreciate it.

If you just Google "contractor mortgage brokers" you will see a list of mortgage specialist that can help you.

[Leebok]

FYI

I came back to contracting after 3 years perm, in Jan 2013, so no accounts filed.

Offer accepted on house, early March 2013.
Mortgage application sent in (to Halifax) with my CV, and current contract.
Approval In Principal within a week.
Lender's Valuation done and offer out the SAME day.

(My wife is a Mortgage Consultant who did the application).

Hi Scruff,
I am just going through the process of moving house but my current provider is not as flexible. Does your wife offer mortgage services? Could you ping me either way. I would really appreciate it.

[Freelancer Financials]

£500 a day is quite steep in my opinion, unless they are only planning on offering mortgages to contractors in London

As other have said £75k is a lot less than £500 a day.

Someone got their maths wrong, or a typo at the newspaper.

I agree, it's slightly confusing, this is how it should have read in the Times:

To apply for a mortgage you need to be on a minimum daily contract rate of £312.50 a day or on £75,000 (Gross Contract earnings) a year before tax. You must also be able to provide proof that you’re contracted to work 5 days a week and have at least one year of experience in the same field.

However, if you earn a daily rate but don’t work every day you must earn a minimum of £500 a day as Halifax assumes you are unlikely to work in the same way as those on full-time contracts.

Anyway, at least they got my quote right!

[Old Hack]

I think it's a confusion of two points.

Minimum of £300 a day if working five days a week (around 360k mortgage)

but

Minimum of £500 a day if working less than 5 days, but grossing no less than 75k (so min 3 days really).

Having finalised going mortgage free this year, I am half tempted to pull out the wraps and buy a carlos fandango on the beach and work a few more years...

[Scrag Meister]

£500 a day is quite steep in my opinion, unless they are only planning on offering mortgages to contractors in London

As other have said £75k is a lot less than £500 a day.

Someone got their maths wrong, or a typo at the newspaper.

[Freelancer Financials]

Cheap money.

We are back to liar loans, anything to make a quick profit on cheap printed money.

Everything is going up (cost of living, houses, stock markets) except wages.

Boomed!

This has nothing to do with SELF-CERT Mortgages. You still have to provide evidence of your earnings by way of contract and bank statements.

[Freelancer Financials]

Contractor Mortgages

I saw this before but the daily rate quoted was £300, not £500, which is a lot closer to the £75,000 annual contract value (£72,000 to be exact, based on 48 weeks). Has the Times got it wrong?

Basically anyone with a contract in place that earns gross contract earnings of at least £75,000 a year before tax can apply for a mortgage in this way.

This works out at £312.50 a day if your contracted to work five days a week and take four weeks’ holiday a year.

You must also be able to provide proof you have at least one year of experience contracting in the same field of work.

If you earn a daily rate but don’t work every day, then you must earn a minimum of £500 a day. If you want more details the full article is on our web site.

[Scruff]

FYI

I came back to contracting after 3 years perm, in Jan 2013, so no accounts filed.

Offer accepted on house, early March 2013.
Mortgage application sent in (to Halifax) with my CV, and current contract.
Approval In Principal within a week.
Lender's Valuation done and offer out the SAME day.

(My wife is a Mortgage Consultant who did the application).

[DimPrawn]

How much do you estimate your next divorce will cost?

Half as much as the last one.

[Old Greg]

Cheap money.

We are back to liar loans, anything to make a quick profit on cheap printed money.

Everything is going up (cost of living, houses, stock markets) except wages.

Boomed!

How much do you estimate your next divorce will cost?

[MyUserName]

With cheap debt who cares about wages, it's not like debt will be expected to be repaid?

Of course it will be repaid ... by taking out a consolidation loan

[AtW]

Everything is going up (cost of living, houses, stock markets) except wages.

With cheap debt who cares about wages, it's not like debt will be expected to be repaid?

[Bunk]

I saw this before but the daily rate quoted was £300, not £500, which is a lot closer to the £75,000 annual contract value (£72,000 to be exact, based on 48 weeks). Has the Times got it wrong?

[Paddy]

It never ceases to amaze me; the number of people who inadvertently quote Karl Marx but who also disagree with his theory. The current recession and cause it absolutely what he predicted when capitalism gets out of control.

[DimPrawn]

Cheap money.

We are back to liar loans, anything to make a quick profit on cheap printed money.

Everything is going up (cost of living, houses, stock markets) except wages.

Boomed!