5.99% rate

[essayer]

I am a contractor looking to buy a property and have got to a stage where I can put down 10% on a house.
The rate I have been quoted is 5.9% fixed for two years then bank's SVR afterward.

Given that I am a contractor with a low salary and dividends etc I appreciate I will struggle to access the best deals, but should I be able to get that rate down significantly ? I have good credit history.

[surfymark]

essayer said:

I am a contractor looking to buy a property and have got to a stage where I can put down 10% on a house.
The rate I have been quoted is 5.9% fixed for two years then bank's SVR afterward.

Given that I am a contractor with a low salary and dividends etc I appreciate I will struggle to access the best deals, but should I be able to get that rate down significantly ? I have good credit history.

Given your circumstances and a 90% LTV mortgage, I think you have got yourself an amazing deal!

M

[essayer]

Ok, thanks.
It's good because I can overpay/underpay, but seems a high rate, at least initially.
15% deposit would get me below 5%

[Gazzas86]

With 20% deposit i managed to get 3.69% 2 year fixed, so maybe 5.99 does seem to be a little steep :S not sure

[Sarnie]

Gazzas86 said:

With 20% deposit i managed to get 3.69% 2 year fixed, so maybe 5.99 does seem to be a little steep :S not sure

The difference in deposit is huge, in product terms......................

[SeeFive]

Sounds a bit steep, but self-employed has its issues I guess.

What is your income multiplier - I guess that you are avoiding 40% tax with a daft salary and drawing large, regular dividends? If they are regular, maybe they can be taken into account.

Have you considered a first time buyer / shared equity scheme to reduce your LTV? It's not for everyone, but my step-kid and her hubby just got a 4.29 on the FirstBuy scheme (where they put a 5% deposit down, builder and govt put the other 20% on a 5 year interest fee loan basis) giving a 75% ltv. Their mortgage is about 3.6 times joint annual salary and they have no debt. 4.5 or 5 x salary was ok with big name lenders like Halifax and Natwest. Are you going through an independent broker to extend your options?

They could have got a better rate (even on this restricted panel of lenders and scheme products) with a 5 year fixed period, but he is new to the UK and has a spousal Visa only, so we were restricted to a couple of lenders who could handle his specific circumstances.

Might be worth looking into such a scheme, if you can put up with a new build with a maximum of one bedroom more than you need. There are a number of shared ownership schemes. Firstbuy only involves the mortgage payment for the first 5 years - others tend to include rent from the outset which would hurt their budget.

[crizzy]

Check out Post Office, 10% deposit gets you 4.99% fixed for five years (plus fee) which seems pretty good to me.

[Welshbeef]

Ive just got 2.70% was 3.79%

The 2.7% is due to lower ltv however back in 2009 as a contractor I secured 3.79% with a 60% ltv. Rates were harsher then so use that as a guide

[worsy]

How many years accounts do you have? With First Direct, they took 2 years and draft accounts for the third year, I had a long term banking relationship though. You'd need another 5% on the deposit though for FD. Have you tried your own bank or is this the deal on offer?

Could also try a specialist, like http://www.contractormortgagesuk.com/

No recommendation, but linked off PCG website. http://www.pcg.org.uk/cms/index.php?option=com_con...

[dozen]

Just to echo the above, I am a contractor and I took out a mortgage with First Direct. There was no problem at all with my having only 2 years accounts and draft accounts for the third year. I had moved my current and savings accounts to them 4 months before applying. I do my business banking with HSBC and I think that helped.
Good luck!