Contractor mortgages
Discussion
big_boz said:
Any of the mortgage brokers on here specialize or have any good contacts for lenders that will deal with LTD compnay contractors?
Had some quotes from contractor mortgages made easy, just want to see how competitive they are on rate and fees.
Cheers
Feel free to forward the details over to me, and I'll see what else is available Had some quotes from contractor mortgages made easy, just want to see how competitive they are on rate and fees.
Cheers
smckeown said:
Halifax are contractor friendly(ish). I got a mortgage with 20% deposit and 1 years of accounts.
If you are a straight contract worker, it's a lot easier, as lenders can classify you as employed. If you've set up as a limited company and have your money paid to your company, from a lenders point of view they will classify you as self employed which then requires two years worth of SA302's/accounts. There are a few small niche lenders that will still consider you but the rates are uncompetitive with standard products as they have no competition in this particular corner of the market.....Sarnie said:
smckeown said:
Halifax are contractor friendly(ish). I got a mortgage with 20% deposit and 1 years of accounts.
If you are a straight contract worker, it's a lot easier, as lenders can classify you as employed. If you've set up as a limited company and have your money paid to your company, from a lenders point of view they will classify you as self employed which then requires two years worth of SA302's/accounts. There are a few small niche lenders that will still consider you but the rates are uncompetitive with standard products as they have no competition in this particular corner of the market.....http://www.freelanceadvisor.co.uk/money/halifax-ea...
glm1977 said:
I know you are in the trade, but a few people at my office who are LTD workers have gone via Halifax - they seem to have a special thing going with some contractor websites:
http://www.freelanceadvisor.co.uk/money/halifax-ea...
At what LTV's though? And how long have/had they been trading? Low LTV and trading more than two years is fine.http://www.freelanceadvisor.co.uk/money/halifax-ea...
I've seen that link before and it seems to contradict what it says within their lending criteria under "employment contracts"
http://www.halifax-intermediaries.co.uk/print/crit...
It states;
"Sub Contractors, Fixed/short term contracts and Agency workers:
Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.
Evidence of their employment track record may be required.
Customers should be treated as self employed if they pay their own tax or sub contract to more than one company."
The last sentence is key. If you pay your own tax then they classify you as self employed which then reverts to their two years worth of HMRC documents.....
To be fair, Halifax have some great quirky criteria and will do a lot of cases others wouldn't look at but their rates are poor.....
Sarnie said:
It states;
"Sub Contractors, Fixed/short term contracts and Agency workers:
Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.
Evidence of their employment track record may be required.
Cheers for your time spent looking at my details yesterday buddy. Regards the above, Contractor mortgages made easy, did mention the industry piece, but as i started contracting in an industry that i had previously worked in for a decade, this did appear to make things a little easier, however as you saw from the rates i sent you, they are not great, but its an enabler for me to get the home i want now. Sure i will have to stomach the poor rate for a few years while i get some more trading history, but i can deal with that."Sub Contractors, Fixed/short term contracts and Agency workers:
Applications will be considered from the above employment types if the customer has a current continuous employment of 12 months or more with 6 months of the contract remaining or the customer has 2 years continuous service in the same type of employment.
Evidence of their employment track record may be required.
For other LTD contractors reading this i was offered 5.39% fixed for 2 years with £999 arrangement fee and then a £500 (i assume) finders fee.
Newbury building society offered 5.29% fixed for 3 years with free valuation and a £500 fee, so a bit better all round than the above.
That is on 90% LTV £250k mortgage (so £225k loan)
Looking at rates for employed individuals, these appear to be around the 3.7% mark fixed for 2 years but with similar fees attached. I have 12 months books at present.
I'm a contractor and Sarnie sorted me out with a mortgage with Halifax late on in 2013. I hadn't been contracting long but had a good LTV and the mortgage is pretty low in comparison to my rate.
He actually got it cheaper (albeit only slightly but multiplied up it's a decent saving) for me than going direct through the Halifax, I will be using him again when it comes to remortgage time.
He actually got it cheaper (albeit only slightly but multiplied up it's a decent saving) for me than going direct through the Halifax, I will be using him again when it comes to remortgage time.
TopCAD said:
I'm a contractor and Sarnie sorted me out with a mortgage with Halifax late on in 2013. I hadn't been contracting long but had a good LTV and the mortgage is pretty low in comparison to my rate.
He actually got it cheaper (albeit only slightly but multiplied up it's a decent saving) for me than going direct through the Halifax, I will be using him again when it comes to remortgage time.
He actually got it cheaper (albeit only slightly but multiplied up it's a decent saving) for me than going direct through the Halifax, I will be using him again when it comes to remortgage time.
The key for you was that you had a fairly large deposit. LTV is EVERYTHING. Even a questionable credit score can be negated by a healthy deposit.....
Just because it may interest you guys, I've started a 'Contractor Thread'
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I found this site very useful, read the section on Contractor Mortgage guides:
http://www.contractorweekly.com/contractor-guides/...
Another site that covers this topic well is Contractor UK, they've got a really good forum.
http://www.contractorweekly.com/contractor-guides/...
Another site that covers this topic well is Contractor UK, they've got a really good forum.
Also a contractor here, had one agreed in Principal with nationwide via a broker.
Why is getting a mortgage so daunting? I supplied fax copies of SA302's and due to the Unique reference being shaded out I have to get postal copies. They don't make it easy. Hopefully it will all go through. 3.09 5 yr fixed 50%LTV.
It would appear Sarnie is tried and trusted guys so put your faith in his knowledge, I went via a friend of the family or would have called sarnie.
Why is getting a mortgage so daunting? I supplied fax copies of SA302's and due to the Unique reference being shaded out I have to get postal copies. They don't make it easy. Hopefully it will all go through. 3.09 5 yr fixed 50%LTV.
It would appear Sarnie is tried and trusted guys so put your faith in his knowledge, I went via a friend of the family or would have called sarnie.
glm1977 said:
I know you are in the trade, but a few people at my office who are LTD workers have gone via Halifax - they seem to have a special thing going with some contractor websites:
http://www.freelanceadvisor.co.uk/money/halifax-ea...
Just read the article, the news was based on another blog written by Freelancer Financials. http://www.freelanceadvisor.co.uk/money/halifax-ea...
http://www.freelancerfinancials.uk.com/mortgages-f...
They're mortgage brokers specialising in contractors.
Has anyone here dealt with them?
Sketos said:
Just read the article, the news was based on another blog written by Freelancer Financials.
http://www.freelancerfinancials.uk.com/mortgages-f...
They're mortgage brokers specialising in contractors.
Has anyone here dealt with them?
With a minimum fee of 499, or 0.65% of the advance, I hope they are good!http://www.freelancerfinancials.uk.com/mortgages-f...
They're mortgage brokers specialising in contractors.
Has anyone here dealt with them?
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